MONEY AND MARKETS

Otago Witness, Issue 3671, 22 July 1924, Page 21

MONEY AND MARKETS

LONDON, July 19. The apprehension of an early rise in the bank rate having apparently passed away, a better tone has shown itself on the Stock Exchange, and the gilt-edged market is recovering from the recent depression. The unexpected revolutionary outbreak in Brazil had a somewhat disturbing effect, but this has been counter-balanced by the removal of fears ot dearer money, an improvement m the sterling exchange with America, and the prospect that the London Conference of Prime Ministers will improve the international political situation. These factors have brought about some revival of confidence, and the tone of the gilt-edged market is distinctly firmer, although there is no great activity. An improvement is noticeable in the War Loans Conversion Loan, also in the scrips of several recent colonial issues, and a satisfactory incident has been the placing privately of a million New Zealand per cent, stock at 95 on the same terms as the five million loan floated in May last. This million was placed without affecting tho market in any way, and its sale shows how easily the market can absorb large issued capital of this sort. But while gilt-edged stocks are firm other securities have not been well supported, and several reoent. capital issues of industrial companies have not been fully subscribed. Tho foreign exchange market has been somewhat unsettled. with considerable fluctuations in the dollar exchange, but a strong rally has set in. and the rate to-day is firm, just under 4 38, one cause being the large American demand for sterling in connection with the big flow of American visitors to Europe Colonial butter prices are well maintained, although Danish is weaker, owing to the absence of demand from Germany. Our supplies of best butter are beginning to decline as usual at this time of the year, so it is expected that prices for these will not go lower. But increasing quantities are coming from Siberia, the imports recently having been about 15,000 to 29,000 casks weekly, and 100.000 casks are due next week. The quality of this butter has greatly improved, and it is affecting the prices of lower grade butters. Some buyers are taking it instead of Irish,

The colonial apple market continues very firm, especially for hard, keeping varieties. The prices paid are surprisingly high, considering that Covent Garden and other markets are heavily supplied with Continental and small fruits. One reason for the firmness is undoubtedly the demand caused by the hosts of visitors to London. Another is that the English apple crop is expected tc be small owing to disease, and many fruiterers are purchasing Sturmers to store for autumn requirements. j.et another reason is that the apple-eat-ing ha nit is steadily growing, which is due, in the opinion of many people, to the advertising propaganda now being carried on not by the dominions alone, but by other exporting countries. The most remarJcaore feature of the apple trade is the high prices realised for blemished Tasmanian Stunners. Many of these have a most unsightly appearance, being almost covered with black spot, yet they are reaiis--1 fT’ 16s 6d per case. Opinions may differ as to whether apples of this sort ? r ® ft. g advertisement for Australia, but the fact that they are selling so well disarms criticism regarding the wisdom of shipping them. It must, however, be reinembored tnat this is an abnormal year, ,? r , reasons already mentioned, and rn-nLm ® , no ' y behl ? realised will P ol ably constitute a record for the third week in July.