MONEY AND MARKETS

Otago Daily Times, Issue 20710, 7 May 1929, Page 9

MONEY AND MARKETS

STOCK EXCHANGE DULL. APPLE TRADE IMPROVING. BUTTER MUCH BRIGHTER. (United Press Association.) (By Electric Telegraph—Copyright.) 1 LONDON, May 4, The condition of the Stock Exchange does not show any change, and dullness characterises most of the markets. The political situations, both at Home and abroad, are having the effect of restraining business. The prices of gilt-edged securities are generally well maintained, especially colonial stocks. The steady increase in the Bank of England’s stock of gold, which is now more than £8,000,000. in excess of what it was when the bank rate was raised in February, has bad the effect of improving investment securities,-and as the stock will be further increased next week by the arrival of 1,009,000 sovereigns from Australia, the position is regarded as being so satisfactory that some people are talking of the possibility of a reduction in the bank rate in the not distant future. Such a reduction is very desirable in the interests of prospective borrowers, notably Queensland, which has £12,000,000 5J per cent, maturing on July 1. The arrangements for a conversion loan for this amount must ha made shortly. The success of the Melbourne Board of Works loan received the most favourable newspaper comment. The apple trade is showing signs of improvement here and at Hamburg, as American supplies are beginning .o decrease, and there is a prospect of Australian and New Zealand fruit meeting with better demand. There are still large quantities arriving at British ports, the total for the week ending May 7 from Canada, the United States, New Zealand, Australia, and South Africa aggregating 295,000 cases. After that . supplies will he smaller, only 146,000 cases being due for the ■ week ending May 14. The quality of the apples now-coming from Australia and New Zealand is considerably better than that of the first arrivals, particularly as regards colour. This ought to have a good effect on the trade.. The most satisfactory feature of the fruit trade is the strong demand for pears. • Australia and New Zealand have the market practically to, themselves, for South African supplies are rapidly diminishing; consequently there is keen competition for all good pears, and high prices are being made. The Barrabool landed her 13,558 packages of. Western Australian fruit in excellent condition. One leading im-porter-described this cargo as‘one of the best he had seen from Australia. Some fetched : as much as 20s and 225: 6d for half cases, and other sorts sold correspondingly well. This shipment ought to give a profitable return to exporters. Discussing the wool position, the Economist’s correspondent says that the trend of events at the London .wool sales is helping to stabilise the position in a fairly encouraging fashion. Some .difficulty is admittedly being found in disposing •of second-hand offerings, and it is in these that there is. any decline. .Crossbreds are being bought freely by Home and Continental buyers, and, in spite of the fact that this description forms the major portion of the offerings, greasies: are not showing any appreciable decline compared with the last senes of sales. During the:whole time business has . been comparatively quiet in merino tops. Crossbreds n. ve been selling, steadily, and the. outlook fortius .description' is fairly good. = , The butter, trade experienced a welcome improvement in the demand this week. Business during the last few days has been quite active. There are ■hopes that this state of affairs, will, be maintained for some time, for neither stocks here nor the. quantities afloat •are heavy,: and a continuance of the cold, dry weather, in England, Ireland, and on the Continent is : retarding grass production ; consequently the. output of butter. is, considerably, smaller.; than ,is Usual at this time of the year.—Australian Press Association.