WEEKLY TRADE REVIEW

Otago Witness, Issue 3517, 9 August 1921, Page 13

WEEKLY TRADE REVIEW

LONDON 7 , August 6. On the Stock Exchange what liitle business is passing is confined almost entirely to investment stocks, which are very firm. New colonial loans all strong, and likely to remain so until the Government, removes the embargo from the new issues. New Zealand six per cents, are now quoted at. 72s 6d premium. Business in industrial stocks has been very slack, but the tone of the market is good, there have been few changes in tiic* quotations, prices being mostly upward. The announcement of the Prime Minister’s Economy Committee has not aroused much enthusiasm on the Stock Exchanges, whoso members are mostly sceptical regarding any benefits that are likely io aeeruo uieiefroai. 'They consider the committee's appointment indicates that the 'Treasury’s circular of last May, urging Government departments to economise, failed to achieve its purpose. The conditions in the money* market have become tighter. There has been a consul ruble demand for accommodation in Lombard street, with a hardening of rales, and there seems little prospect of any further reduction in the bank rate, at any rate ior the present. Some people express the opinion Unit the present rate will ho the lowest for the year. Ihe foreign exchange market has been unusually quiet. Ihe only noticeable movement is tho improvement in the dollar exchange to 360 cents, for which the market cannot account, the only suggestion being that the jump is due to the remittance tq London of funds hold in New York ou tho reparation account. As the result of the drought and the consequent shortage of butter, the demand for margarine is steadily increasing, with firm prices. Manufactuiers are buying raw materials freely, thus forcing upwards tins values of copra, tallow, palm kernels, ground nuts, and all edible oils. There has been quite a boom in copra, and Dutch crushers bought 20,000 tons in a week. Iho prices for August!>ctober shipment, reached £37 on NYednesdny, but sales by speculators caused a decline of 50s, and there may be a slight further set back, though the general opiuon is that values are likely to be maintained about the present level when speculators are shaken out. There is a good demand for tallow at full to dearer rates, and an advance is expected when -ales resume ou August 10. There has been some inquiry from Australia for shipment, but little business is possible as the prices asked are above those ruling here. Margarine manufacturing companies are having very prosperous times, Yandenberghs, Limited, nett profits for 18 months were £1,624,873. Canned fruits are meeting an exceptionally good demand. The lower grades of Californian apricots and peaches are almost unobtainable, and supplies are likely to be short till the new season’s pick is available. Singapore pine-apples are in great request. Supplies are unequal to tintrade requirements, so Australian packers ought to do well, especially as the trade papers report, a great improvement in the quality and packing of the Australian product. I he wool position shows Utile change, a holiday spirit being everywhere apparent. Reports from Tewshury point to a return of the heavy woollen trade, to pre-war conditions, making cheap, low, coarse cloths instead of the finer qualities which were in demand during the war, when people had plenty of money and wore willing to pay high prices. Now money is less plentiful, there is a steady swing of tint pendulum in tho direction of the old class of cloths. One linn recently sent 1000 cheap pieces abroad, and others could have sold many more if they had had lliem in stock.