TRADE AND FINANCE.

Poverty Bay Herald, Volume XLIX, Issue 16113, 30 April 1923, Page 7

TRADE AND FINANCE.

COMPETITION IN BUTTER. LOW PRICES FOR APPLES. ACTIVITY ON STOCK EXCHANGE. lElec. Tel. Copyright—united Press Assn.) (Australian anil N.Z Cable Association.) LONDON, April 28. The foreign exchange market has been quiet, the only feature being the fluctuations of the mark. According to the Economist newspaper, it would appear that the recent break in the mark was the result of no settled policy, and would seem rather due to the Reichsbank suddenly losing heart on a particularly strong outburst in respect of tho demand for foreign currency. The Government and the Reichsbank now seem determined to carry on a policy of stabilisation, but at a higher level, and raising the bank rate to 18 per cent, shows the lengths to which the authorities are now prepared to go. Butter continues on the downward course, and, though some optimists consider the market has touched bottom, supplies are so large that a. further decline would not be surprising, especially if the Danes continue their present policy of forcing prices down in order to clear their shipments each week. Danish to-day was quoted at from 156 s to 160 s, a decline of 15s since Monday. In face of such action, it is impossible for holders of colonial to maintain prices. The chief hope of recovery is that the lower retail price of eighteenpence now ruling may stimulate consumption, which should increase considerably at the expense of margarine. ' The apple trade does not show any improvement. Prices at London, Liverpool, and Hull are equally disappointing. The only apples realising above 10s are Cleopatras and Dunns, and occasionally some Cox's. A largo proportion of tbe apples are making 6s to Bs, somo 8s 6d to 9s 6cL- One of the largest importers estimates tho cost of landing apples hero at fully 10s per case, so the present prices represent serious loss to shippers. Apparently tho selling price of apples has got back to the pre•wnr level, while the costs and charges, freights, etc., are almost double prewar. Importers, are complaining bitterly of tho poor quality of tho Tasnianian apples, of which many are im mature and rotted, comparing most unfavorably with Uvegon, Washington, and Ncwtons, of which considerable quantities are still arriving. Some are rather wasty, but good lots are selling readily at from 8s 3d to'l3s. One Liverprxil importer reports that, in his opinion, Tasmanian shipments commenced much too oarly. He urges the Government io prevent such early shipping in future. If supplies of Americans continue so late in the season, many parly Tasmania)! varieties ought not to be shipped, for obviously, while good (Americans ai'o available there is little chance of immature Ribstones and Alexanders fetching remunerative prices. Although the wholesale prices are .so unsatisfactory, somo shopkeepers are asking exorbitant, prices. One largo West Eiid store, in a. weekly price list, offers Australian Jonathans by the case at 27s 6d to 28s 6d. Importers regard this price as outrageous and somo of them .are ..protesting to the managers of the stores.

Following tho reductions in tho estimates of the Cuban sugar crop to 3,670,000 tons, compared with a turnout of 4,120,000 tons last season, there has been wild purchasing of Cuban and prices have risen greatly. The advance is likely to continue and supplies during the next few months are expected to be below requirements and the position is unlikely to be relieved until late in the autumn, when tho European beet crops como along. The advance has been serious for many retailers who iefrained from buying some time before the introduction of tho Budget, in the hope that the Chancellor would reduce tlie duty. Tho reduction failed to materialise. Since tHe Budget refiners have raised prices 2s 9d per cwt., with the result that small retailers have been compelled to sell below cost to meet the competition of multiple shops. Now that prices have been raised all round loaf sugar is BJd and granulated 7£d. Jam manufacturers. are also likely to advance prices...; The Stock Ej&hahge has reaped the benefit of the satisfactory Budget. Both the gilt edged and the industrial groups have been active. British funds have improved all round, especially the Conversion Loan, which shows an advance of (si since the beginning of the year. The improvement in gilt edgeds generally may bo attributed largely to Mr S. Baldwin's generous provision for debt redemption, while industrials have been benefited by the reduction in the inincome tax and corporations' profit tax. Another contributing factor to the cheerfulness of the stock markets is tho more optimistic.view being taken of tho European political situation.