MONEY AND MARKETS

Otago Daily Times, Issue 21053, 16 June 1930, Page 9

MONEY AND MARKETS

STOCK EXCHANGE DULL. APPLE PRICES KEEP UP. BUTTER MARKET MORE ACTIVE. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 14. (Received June 15, at 5.5 p.m.) The high hopes which were entertained a fortnight ago of an early.reduction of the bank rate to 24 per cent, have been dashed to the ground by the adverse movements of the foreign exchanges and tiie heavy demands for gold from foreign countries, especially France. It now appears likely that the stringent conditions will prevail in the money market all this month, and this expectation has caused renewed dullness on the Stock Exchange especially in the gilt-edged market. The depression spread to other sections. The slump in Wall street last weekend and the renewed weakness there have caused serious depression in industrials, which has been accentuated by the poor results shown in the reports of many trading companies. Among those declaring lower dividends are several connected with Australian trade—for instance, Lovel and Christams, who are large importers of Australian and New Zealand butter, state that “ owing to a decrease in profits resulting from -a fall in the value of commodities,, dealt in,” they are not paying a final dividend on ordinary shares, the only distribution being the interim 2 per cent paid in January. This company has been paying 10 per cent, dividend for some years past. The only satisfactory event of the week has been the success of the German Government reparations loan of roughly £00,000,000 both here and on the Continent. Our share of this amounted to £20,000,000 in 5J per cent, bonds at 90. The. lists were opened yesterday. morning and closed three hours later, the amount having been heavily over-subscribed. The French, Swedish, and Italian portions of the loan were also over-subscribed.

■ The prices of apples have been keeping up remarkably well considering the heavy supplies, and the demand remains satisfactory. _ Within a few days, however, large supplies of strawberries are likely to arrive on the markets, and their competition will naturally affect the sales of apples. In view of the criticism passed on some Victorian apples, it is only right to point out that many Victorian apples are entirely satisfactory, and one of the leading brokers at Spitalfields market, in his weekly report, says that some Victorian fruit, packed under a community brand, has been of fine quality and met with a good demand. This fruit was packed in Canadian standard cases and, was attractively labelled. aM_ buyers continually express appreciation of the change in the style of packing.

A welcome change has come over the butter market since ”<e Whitsun holidays, and during the last few days buyers have been ( more active than for a long time past. Mr Charles Wilson, a member of the Australian dairy, produce board, has returned to London after a two months’ tour of the Continent and the industrial centres of Great Britain investigating the position of the butter industry, and on being interviewed by the Australian Press Association he said that" he gathered the impression that. Continental countries had increased their herds largely, especially Germany. During his visit to the north of England Jbe found that all* the multiple shops were selling Danish, New Zealand, and a limited quantity of Australian butter at Is 3d per lb, without there being any strong demand. Reviewing the position in London to-day, Mr Wilson estimated that visible stocks in Great Britain exceeded 1,000,000 boxes, but:he thought that the market had now touched bottom and blenders and multiple shops were now operating freely, apparently thinking it desirable to provide for their autumn and winter requirements while prices are moderate. Their operations had, raised the prices of choicest New Zealand butter to 1345, and Australian to 131 s. These opera tions, of course, would mean only the transfer of stocks in cold store from wholesale to multiple shops and blenders, and unless this butter is consumed before the end of the season its presence here will influence the values of the new season’s mak^.