WEEKLY TRADE REVIEW

Otago Witness, Issue 3487, 11 January 1921, Page 18

WEEKLY TRADE REVIEW

LONDON, January 8. The Stock Exchange started the New Year .in an encouraging fashion. There was an all-round improvement, the feature of the rally being in gilt-edged securities, especially Victory bonds, which are quoted at £74 17s 6d, as compared with £7O 15s on Christmas Eve. The rise is generally attributed to an expectation that the excess profits tax will be removed, and possibly an extra 10 per cent, imposed on death duties, in payment for which Victory bonds are accepted at face value. The markets generally are optimistic, in expectation that cheaper money will bring about a revival of trade and more settled, world-wide political conditions. There has been no sign of a renewal of forced liquidations, -which were so marked a feature in December. The slight relapse of prices is due to profit taking, with the turn of the year. The conditions of the money market have returned to normality. There is some discussion regarding the possibility of a reduction in the bank rate, which would immensely assist a revival of trade, but a reduction seems hardly possible unless the money position in the United States becomes easier. The dividend announcements of the big banks have been awaited with unusual interest, owing to the decline in the price of their shares last quarter, but of seven banks and three discount houses which issued accounts, all maintained dividends ranging from 10 per cent, to 19 per cent., Lloyd’s, Barclay’s, and the London Joint showing record results. The prospects for the wool sales, opening on Tuesday, appear favourable. More confidence is apparent regarding raw material values, as top-makers are carrying very small supplies, and must re-enter the market. There is a likelihood of the commencement of the export credit scheme, in order to ship surplus woollen and wmrsted clothes to the Continent. There was a more cheerful tone at Bradford. Sellers are stiffening, in the belief that values are low enough, and that the Australian realisation scheme is likely to cause a firmer tone by its effect on spot values. There has been an improved inquiry for yarns, but piece Mods are still a drugon the market, though price-cutting is becoming general. The removal of control over apples appears unlikely. At present the market is flooded with Nova Scotian and American varieties, of which fully 99 per cent, are selling under controlled prices. Oregon Newtons are fetching 20s, and Californian Jonathans 16s to 18s. Covent Garden dealers say it is probable that supplies will continue plentiful till April at least, and heavy shipments of oranges are arriving. If Australia ships a million and a-quarter cases, it must not be expected that they will realise anything like control prices for any but the choicest sorts. The question of making advances to growers is considerably exercising importers. Some firms say that in the present outlook they are indisposed to advances above Bs. In making the January distribution of cheese, the Ministry of Food states that if all is taken up, orders will absorb 5000 tons, leaving only 7000 on the Government’s hands. Butter is steadily cheapening ow'ing to an easier exchange, and Danish is being purchased here on most favourable terms.