MONEY AND MARKETS

Otago Daily Times, Issue 19407, 17 February 1925, Page 7

MONEY AND MARKETS

FORTNIGHTLY TRADE REVIEW. STOCK EXCHANGE DULL. WOOD PROSPECTS DISCUSSED, . Press* Aaa&rifttloo—By Telegraph—CopyrightLONDON, February 14. Dullness Still reigns in the speculative section of the Stock Exchange, where buyers are conspicuous by their absence. Although prices of many of the shares are decidedly lower than they were a month ago, gilt-edged Securities remain steady, and there has been, a notable appreciation of the 3£ per cent. Conversion Loan, which now stands at £79 10s, showing a very handsome profit to those lucky individuals who secured it about £77 10s, when the last issue was made on January 8, The firmness of this stock is attributable largely to the heavy Government purchases for sinking fund requirements. Oilier favourable factors are the diversion of money fropi speculative stocks and the optimism regarding Budget prospects. EXCHANGE RATE ON NEW YORK. Regarding the dollar exchange, the newspaper Satist says: “It is very probable that the rate was talked up faster than the position warranted. Had onr Government- declared for the gold standard when the dollar rate was within two per cent, of parity, probably the margin would have been closer now. Snob a declaration was not made. The foreign exchange markets, New York and elsewhere, are still in doubt regarding the Government’s tentions. The ardour of New York speculators was considerably damped by the cautious tone of the speeches of the chairmen of the large banka here, and it has become dear that, until the pros and cons have been deliberated, the dollar exchange will be subject to the same influences as have obtained in the past, when the gold standard was but a distant goal.” THE WOOL TRADE. Commenting on the curtailment of the wool offerings in Australia, a Bradford correspondent writes; “The experiment will be followed with greet interest. Few Bradfordians anticipate its success, as circumstances axe against the wool-growers. Tile purchasing power throughout the world has increased slowly among the mass of the people. The position of wool is seriously assailed by substitutes, especially artificial silk. Moreover, there will be a larger wool clip in Australia next season. The fact that large stocks of wool are being held up in Australia will make values all the more uncertain, rather than stabilise prices, because wool-buyers make values apprehensive of these stocks being suddenly realised by weak holders. Bawra wool was held with Government funds, but the wool accumulations are now being held by private individuals, which is a very different proposition.’’ Another writer says: “Sellers have certainly some rights in determining the prices of their own commodities, but- any artificial or excessive propping up of values is always to be regarded with suspicion rather than with confidence, unless there would be justification for it. It is generally felt at this, the manufacturing end of the wool industry, that prices of raw material had been too high for real prosperity, and this undoubtedly is causing a limitation of the consumption of the more expensive grades.” GOOD OUTLOOK FOR APPLES. Though it is somewhat early to attempt an accurate forecast of the coming Australian apple season, importers are inclined to take a favourable view of the outlook. This is based on the knowledge that stocks in. store in the United States and Canada are estimated at only about three-fifths of the quantity at this time a year ago. There will thus not be so many left to compete against the Australians when they begin to arrive here about the second week in April. Apple importers are receiving numerous offers from Australia and New Zealand for shipments on f.o.b terms, but generally the prices asked are above London ideas. A few Western Australian Dunns, Jonathans, and Cleopatras have been purchased here at 10s 6d f.0.b., but these appear to be the only transactions effected. The Germans are again making inquiries in all directions regarding apples, but inasmuch as they are asking for fruit to be sent to them on consignment, there is nothing doing, for German credit is still too dubious a proposition. Scandinavian buyers aro also asking for consignments. THE BUTTER MARKET. There was quite a boom in the butter market at the beginning of this week, the strong demand forcing prices up 10s a cwt, but inquiry fell off on Thursday, and yesterday the market closed dull at about 4s below top. The reason for the sudden advance was apparently largely due to the Continent, which, took about 20,000 boxes, Germany, France, and Belgium all competing. Ireland also took a fair quantity. Another factor was the demand from the homo buyers, who have been abstaining for some time in view of the large prospective supplies of Australian and New Zealand butter, but apparently they held off too long, and were compelled to buy this week.—A .and N.Z. Cable.