MONEY AND MARKETS

Otago Daily Times, Issue 21446, 22 September 1931, Page 7

MONEY AND MARKETS

STOCK EXCHANGE GLOOMY PRICES OF TEA RISING BUTTER MARKET UNSETTLED (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, September 19. September 19 is likely to be known among the members of the Stock Exchange as “ Black Saturday,” for the first Saturday opening since April 21, 1917, witnessed the gloomiest conditions for many years. For the last few days the markets have been steadily falling, and yesterday they slumped badly, mainly as the result of selling from Amsterdam, Berlin, Paris, Brussels and New York, owing to the financial troubles in those centres. The last straw came when the Brazilian Government announced that it was unable to purchase sufficient exchange to provide all the interest due on October 1 on the external debt. Today there was further heavy selling from the Continent, with declines ranging from one to two points in war loan fives, conversion three and a-halves, and funding loan, but the market was steadier and later closed above the worst. Australian stocks participated in the general collapse, and though there were only a few sales prices were lowered all round. A contributory factor to the weakness was a rumour of the proposed conversion of Commonwealth stocks here. Although most food and other commodities are selling cheaply there has been one which has been steadily improving lately. The average prices recorded at the auction sales at Mincing lane for all teas for the week ended July 16 were 9.46 d per pound, and for the week ended September 11 the average was 14.19 d. The rise is apparently not unconnected with the fears that duties would be imposed. Therefore the most cheering point in the situation is that they have hardened further since the introduction of the Budget. The butter market, like most others, has been unsettled by the political and financial developments, but it is satisfactory to know that the consumption has maintained a high level. This is shown by the fact that although the August imports exceeded those of the previous August by 5000 tons, stocks in cold store last week were decreased by nearly 3000 tons. Leading importers state that although the outlook is somewhat uncertain the statistical position of colonial butter for the next two months appears to be fairly sound, and provided consumption is maintained the stocks in cold store will probably be needed before adequate supplies of the new season’s butter are available. Grocers apparently do not relish the new order for the marking of blended butters. According to the newspaper Grocer the order will put further responsibilities in respect to labelling and marking goods upon the retailer, who is already overwhelmed by Acts, orders, and regulations, and unfortunately it looks as though this additional worry will come just at the height of the hoped-for pressure of Christmas trade. The Grocer adds that it doubts if the applicants for this order will have reason to rejoice at the result of their application. The suggestion to give woollen Christmas gifts is receiving the enthusiastic support of Bradford. According to the managing director of an important firm of wool merchants, it would benefit alike manufacturers and retailers, as well as the producer of the raw material. He points out that the range of goods now produced from wools is really amazing, and not generally appreciated. It extends from carpets, rugs, and mats to ties. If instead of buying foreign goods for Christmas presents—a custom which is largely responsible for the importation of luxury goods—-the general public would select goods made from raw material produced here or in the dominions and manufactured by our own countrymen, an excellent start would be made in supporting the Government’s economy proposals. Mr Runeiman’s proposal to prohibit the importation of luxuries is causing perturbation among wine traders, but the Wine Traders’ Review calls the idea ridiculous, for it is the duty upon wines which makes them appear luxuries. The well-known statistician, Sir Leo Chiozza Money, says that the suggestion ignores the fact that in August, 1931, we imported roundly as many manufactured articles as we exported, the imports including great groups of articles which we particularly are able to make, such as pig iron, bricks, and artificial silk. “Mr Runcimai. would prohibit champagne. I suggest that it would be better to flood the streets of Sheffield with champagne than to flood our markets with imported pig iron.”