COMMERCIAL

Southland Times, Issue 19479, 31 March 1922, Page 2

COMMERCIAL

FINANCE AND TRADE

Times Office, Thursday, March 30. STOCK. There has been little or no change in ■ the state of the stock market during the week with the exception that there has been a slightly keener demand for lambs and prices for these have risen by about 4d per lb. Fat Cattle.—There have been a few sales to northern buyers, but owing to the continued plentiful supply offering prices remain low. Store Cattle. —There is a very poor outlook in the store cattle market at present, but a 1 revival in th© Dominion’s beef export trade is confidently expected within the next year or so, and those at present rearing calves should find it a payable proposition. Dairy cows are not being offered freely as they will be sold to better advantage after the winter. There have been large yardings of fat sheep at recent sales and these are being absorbed fairly well between the butchers and 'freezing buyers. Prices remain ‘firm with wethers selling at from 20/- to 23/-; prime ewes from 14/- to 17/-. The continued bad weather has had an adverse effect on the number of lambs going into the works. Lambs are not doing too well on the feed at present and a considerable number of those going into the works are of second quality. Buyers, however. are keen and prices show a firming tendency, prime lamb being worth from 20/- to 23/-. There is good inquiry for breeding ewes and although recent sales have included large yardings of these they have been cleared without much trouble. Prices remain at about 20/- to 25/- for good young ewes, 15/- to 18/- for 6-tooth, 15/- to 17/- for s.m. ewes. CEREALS. Oats.—Owing to the bad harvesting weather very few oats are yet offering. It is anticipated that the proportion of undergrade oats will be greater than that of the past season or two and the proportion of A grades will be less. A large proportion of the Southland crop is still in stock. Owing to these conditions samples which will go A grade are in demand ‘and heavy lines suitable for seed will probably command from 2/64 to 2/7 on trucks, farmers’ sidings. B grade are not so much sought after, and merchants are not inclined to pay more than 2/5 per bushel. Undergrades are down to 2/- per bushel. Chaff. Chaff is still offering fairly freely, a good proportion of that offering being old chaff. Merchants are not prepared to pay more than £3 10/- per ton o.t.f.s. Potatoes. —The shipping market has eased again and sales were made yesterday at £5 per ton for delivery during May and June. This seems to indicate that there will ba plenty of potatoes available from Canterbury districts. The equivalent price on truck in the main potato-growing districts in Southland is about from £3 5/- to £3 10/- per ton. '. Ryegrass. —The market remains firm, but merchants are not now hurrying their purchasing as was the case early in the season, and many farmers are holding in the meantime. Clean lines going 251bs or over are bringing the farmers 3/4 on trucks; 241 b seed about 3/2; and 231 b seed about 3/-. Good lines of Italian are in demand at about 3/6 per bushel. Hemp.—The market is very dull. Goodfair will probably be saleable at £3O a ton ’on truck, millers’ siding, but lower grades are not in demand. GENERAL MERCHANDISE. Business in the grocery trade this week has not been quite so bris’k, the inclement weather no doubt being one of the contributing causes. Retailers are finding it more difficult than they anticipated to secure lines to sell at cutting rates. Sugar—The s.s. Wanaka is advised as leaving Auckland to-morrow, with further supplies for Bluff. Butter has advanced a further Id per lb, and is now being quoted at 1/4, with a firm market. Bacon has again advanced during the week by Id per lb, the quotation now being 1/1, and even at this rate supplies almost unobtainable. Cuticura soap and ointment are both in short supply, and have firmed in price. Soda crystals have advanced in the North by~£l per ton, and although the price remains unchanged here at present, it will probably follow suit. Rice reports from Australia indicate a local shortage, and the price was advanced by £1 per ton. New season’s rice will not be quoted for another month or so, and no one in the trade appears t-o know the trend of the market. Some cheap prices were quoted here recently, but this was for inferior grade. CURRENT PRICES. The tollowing are current prices quoted by a retailer; — —Wholesale.— Eggs, 1/6. Bacon, 1/1. Butter, factory 1/4, farm lid, separator 1/1. Pollard, £9 per ton. Bran, £5 per ton. Flour, £lB 10/- to £2O 10r-. Oatmeal, £2l 10/- to £23. —Retail.— Eggs, 1/10. Bacon, 1/4 per lb. Butter, factory 1/6 cash, 1/7 booked; farm 1/1, separator 1/3. Pollard, 11/- per 100. Flour, 25’s 6/-; 50’s, 11/-; 100’s, 22/-; 200’s, 43/-. Oatmeal, 501 b 13/-; 251 b, 6/-; 51b, 1/7; 11b 4d. Onions, per lb 14d; lOlbs 1/-. FRUIT AND VEGETABLES. Fruit.—Business during the week has been on the quiet side, this being attributable to the very cold and wet weather prevailing. Tomatoes are in shorter supply, but the demand is poor. Good dessert pears are wanted and well coloured apples are selling at improved rates. A shipment comprising Tahiti oranges, Raratongan bananas, American oranges and lemoi • due to arrive early next week. Tin jwing are approximate wholesale vaiu v ; : Apples, Cox orange, 8/- to 10/6; Jonathans (choice), 9/- to 11/-; (small), 5/6 to 7/-; Delicious, 24d to 3£d; cookers from 4/6 to 6/-; pears, Winter Coles, to 3d per lb; Beurre Diel, 6/6 to 7/6; Capimont, 6/6 to 8/-; Bergamont, 7/- to 8/6; Bon Chretien, 10/- to 12/6; cookers, 2d per lb. Plums (choice dessert), 2Ad to jam, Id to 2d per lb. Peaches, practically finished, 2jd to Grapes, Hamburgs, 1/4 per lb. I Oranges, American (double cases), 50/-; I lemons, 50/-. j Vegetables.—Supplies are short of requirements. Cabbages, 4/- to 6/- sack; cauliflowers, 3/- to 5/- per dozen; vegetable marrows, Id per lb; jam melons, to 3d per lb; carrots and parsnips, 1/6 per dozen I bunches. HARDWARE. Since quoting the prices of hardware in one issue of March 24, very few if any alterations in prices have been made. Roofing iron is still quoted at £4O per ton, and cement at 8/6 per bag. Small lots of wire nails are still quoted at 6d, but cwt lots can be bought at prices varying from 42/to 50/- per cwt. Fencing wires are being quoted at: Black wire £24 per ton, galvanised £3O, and barb wire £3B per ton. Rabbit netting is still quoted at Bd, and sheep netting at from 8d to Galvanised pipe is quoted at list price. STOCK EXCHANGE. At yesterday’s meeting of the Stock Exchange gales were reported as follow: N.Z. Milk Products, £1 2/9; Southland Frozen Meat 23/6; Soldiers’ Set-

tlement Bonds, £95; Otago Harbour Board debentures at par. The latest quotations are as under:— Bank of New Zealand, sellers 49/6. N.Z. Coal and Oil, sellers 3/3. Westport CoaI K sellers 28/6. N.Z. Insurance, buyers 27/-. Southland Farmers’ Co.-op. (ord.), sellers 45/-. N.Z. Milk Products, sellers £1 2/9. Southland Frozen Meat Co. (£1 ord.), buyers £1 3/-, sellers £1 4/6; (10/- ord.), buyers 11/6, sellers 12/6; £1 pref, buyers 23/-, sellers 25/-. Milburn Lime & Cement, sellers 29/3. N.Z. Drug, buyers 52/-. N.Z. Paper Mills, sellers 22/6. Otago Daily Times, buyers 46/-. Papuan Products, sellers Bd. War Bonds, 1930 (44 per cent, free of income tax), buyers £93. War Bonds, 1938, buyers £9O 10/-. War Bonds, 1939, buyers £9O 10/-. N.Z. Soldiers’ Settlement bonds, buyers £94 15/-; (inscribed), sellers £94 17/6. AUSTRALASIAN IMPORT TRADE. A slight improvement in the export trade to Australia and New Zealand is recorded by Messrs Arkell. and Douglas, of New York, in their Australian market report dated January 7. This, they state, has been | very steady since last August, although i very small, and they expect that any further advance will be irregular. Importers who have been waiting for cheaper quotations will be interested in the following review of the position given in the report:— “The few changes that have taken place in prices during the past month have all been slight, but of a downward nature, as we anticipated would be the case when we last wrote, and we do not doubt but that there will continue to be further declines in prices during the next few months, although we do not anticipate anything of a very serious nature. The readjustment of values is still going on, and will continue undoubtedly for some time to come. Wages in many industries are still to be reduced to normal figures, and especially is this true on the railroads and in the coal fields, and it is expected that further reductions will be attempted by the railroad managers before long. This will probably bring about a corresponding reduction in freight rates, which will help reduce the cost of goods at the seaboard. There continues to be a great deal of unemployment, and we see no reason to look for any material improvement in the export trade for some time to come. The possibility of the purchasing power of Europe increasing to any material extent seems very remote. We therefore do not look for any material advance in prices of commodities for some time to come.” AUSTRALIAN DAIRYING PROBLEMS. One of the principal questions discussed at the conference of committees representing dairy fanners in the butter-producing States of Australia recently (says the Age) was the uplifting of the industry generally. The difficulty that butter factories had had to contend with is in the quality of the cream when delivered by farmers, and it is understood that a request is to be made that legislation be passed to enable that position to be overcome. Another important question dealt with was the stabilising of the industry. Many dairy farmers are suffering hardships owing to the low prices they are compelled to accept for cream. The factories probably cannot pay more until the London market improves, but in the meantime hardships continue, especially in the cases of many soldier settlers. Steps are to be taken to protect the producer to the extent of a fair return on outlay and labour, but the conference has not disclosed its proposals. Taken broadly, the aims of the conference are for the better ment of the industry all round, but whatever methods they may suggest, or adopt the consumer must be considered. AMERICAN IRON AND STEEL TRADE. Hesitation on the part of buyers of iron and steel in the United States towards the end of January did not cause disappointment in trade circles, because no activity early in the new year was expected. The future of the industry was viewed with confidence, and indications were for an improvement in the demand in the spring. Mill schedules were on a reduced scale, the principal producer then running at about 40 per cent, capacity. With consumers showing little disposition to close forward contracts price-cutting had not wholly disappeared, although some sellers had declined business at price concessions. Inquiry for railroad material had developed in different quarters, and a sale of 5000 tons of plates for shipment to Australia, despite English competition, was a feature of the export trade. ENGLISH DRAPERY TRADE, A more hopeful tone is used by the British Trade Review in its January issue as to the prospects of the drapery and clothing trade. “Distress sales of stock,” it says, “are nearing their conclusion, and, though large quantities bi ex-Government textiles remain on the market, there is understood to be no more for disposal. The greater proportion of these supplies should pass into consumption within the next four or five months. After sinking to a slump level because of the break in demand and forced selling, quotations for many lines have advanced slightly in recent months. Manufacturers are carrying practically no stock, and their production is almost entirely to meet firm engagements. There is, therefore, no likelihood of a further wholesale unloading. Everybody concerned, whether maker or merchant, has been com pelted to quote as low as possible in order to attract business. Production costs have been cut in every possible direction, and competition for orders is so keen that a very moderate profit margin is the rule. Selling at a loss was general during the past year, but that obviously could nut continue indefinitely. Ignoring slump sales, the prices at which were as artificial as were those prevailing during the boom, it can be said that replacement costs for the majority of lines are now cut fine, and values are stabilised, or very nearly so, for some months to come. Speaking generally, quotations are not yet awhile likely to fall much below double pre war rates. Overhead charges remain high, wage rates continue 100 to 150 per cent, higher than in 1914, and taxation claims show small signs I of abating. The opinion of authorities is that values will remain firm until about i May or Jifae next. By that date lower labour costs should operate, and very possibly some further slight price easement may show itself. However, this appears sufficient to warrant undue caution in buying, because from now onwards any price slide should be very gradual.” In its February issue the Review says:— Trade is slow to expand, but the improvement is steady and unmistakable. There is now a freer buying spirit abroad, with greatly increased confidence in current values. Enquiries from overseas are being received in much larger numbers, and although they do not all result in business orders actually placed amount in the aggregate to a substantial figure. An important statement on the trend of prices for the spring and summer has been prepared by the Merchandise Committee of the Drapers’ Chamber of Trade, the national organisation representing some thousands of retail drapers throughout Great Britain. The views of the Committee will doubtless interest textile buyers overseas; inter alia, i;heir report says that from enquiries made of reliable authorities in the cotton, woolleik silk, and linen trades, “it would annew

that the prices prevailing at the present time are, on the whole, stable and reliable. "Hiere may be slight fluctuations, but little likelihood of any serious rise or fall in values. In these circumstances the Committee feel that drapers would be wise to place orders for spring and summer deliveries, so that manufacturers and wholesalers will be prepared with goods when required. . . . It is felt that the general depression in trade is largely owing to a lack of confidence in values and prices, and that it would be good business to place orders forthwith for future requirements, thereby assisting in restoring that confidence So essential to commerce.” We are convinced, says the Review, that the advice is sound. THE DOUBLE DUTY ON TEA. It is not generally known (says the Dominion) that practically every pound of tea which comes into New Zealand is subject to a duty of sd, of which the Commonwealth Government gets 2d and the New Zealand Government 3d. In the rare cases when tea comes direct from India, the duty is 3d per lb, but generally it has to be transhipped at Sydney. WORLD’S REDUCED SILVER OUTPUT. An estimate of the world’s production and consumption of silver in 1921 gives the world’s total production last year as 161,000,000 ounces, against 174,000,000 ounces in 1920. Of this total the United States is estimated to have produced 50,000,000 ounces in 1921, against 55,400, 000 ounces in 1920. Mexico 62,000,000 ounces, against 66,700,000 ounces; Canada 10,000,000 ounces, against 12,800,000 ounces; and other countries 39,000,000 ounces, against 39,300,000 ounces. It is estimated that consumption for Governmental purchases and exports to the East absorbed 36,500,000 ounces more of silver than the year’s production. The total distribution on these accounts is estimated at 197,500,000 ounces, of which 18,000,000 ounces were assigned to the United States consumption in the arts, 2,500,000 ounces to similar English consumption, 50,000,000 ounces to purchases under the Pittman Act by the United States Mint, 5,000,000 ounces to Mexican Government purchases, 36,000,000 ounces to shipment from England to India, 5,300,000 ounces to shipments from the United States and England to China and the Far East, and 22,200,000 to purchases in the United States for subsidiary coinage and other purposes. JAPAN’S WOOLLEN INDUSTRY. The steadily increasing actiivty seen in the operations of Japanese wool buyers in Australia is concurrent with the growth of the woollen manufacturing industry in Japan, which began when cotton mills were short of orders on account of Chinese competition. In 1896 cotton tissues exported from Japan were valued at 2,224,000 yen, par value of the yen being approximately 2/o|. In 1920 the figures were 334,966,000 yen. Shipments to China in 1920 were of the value of 166,000,000 yen, to British India 67,000,000 yen, to Dutch India 60,000,000 yen, and to the Commonwealth 11,000,000 yen. Lately there has been great increase in the cotton manufacturing industry in China, and the Japanese textile trade is devoting more and more capital and enterprise to the production of woollen manufactures, many merchants now doing larger business in woollen goods than they did in cotton goods a few years back. In 1902 imports of wool and tops to Japan were valued at 3,397,564 yen, in 1913 at 15,997,609 yen, in 1918 at 60,146,157 yen, in 1919 at 61,304,245 yen, and 1920 at 121,629,458 yen. Imports of woollen and wßMed yarns rose from 241,306 yen in 1918 to 7,671,315 yen in 1920. If these deevlopments (remarks the Argus) are the forerunner of much more general use of woollen garments amongst the great cot-tou-weaving nations, their significance to the Australian wool-growing industry hardly can be over-estimated. CHRISTCHURCH STOCK EXCHANGE. (Per United Press Association) CHRISTCHURCH, March 30. The following sales have been reported:— Union Bank, £l2 4/-. Sales on ’Change:— Christchurch Gas, £6 8/6 (two parcels); Union Bank, £l2 3/6. CEYLON TEA. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) COLOMBO, March 29. At the tea sales 2,750,000 pounds were offered. The quality of the selection again showed a falling off. A good general demand prevailed and bidding was keener. Considering the drop in the quality prices generally were very firm. Common broken Pekoe l/2i; medium broken Pekoe 1/4}, good common leaf 1/3. WHEAT MARKET. . LONDON, March 29. (Received March 30, 5.5 p.m.) Cargoes are quiet as millers have sufficient stocks in hand and do not wish for further contracts at present. LONDON SALES. LONDON, March 29. (Received March 30, 5.5 p.m.) Tallow—l97s casks were offered and 419 sold. The average decline was about sixpence, and most marked on low qualities. Mutton—Fine, 42/-; medium, 38/6. Beef—Fine, 42/-; medium, 38/6. Wool Sales—Competition was well main tained all round. TALLOW. Dalgety & Co., Ltd., report, having received the folowing cable from their Head Office, dated March 29, 1922 : Tallow—l93o casks offered, 328 casks sold, a fair demand; mutton tfllow, 3d easier; low and inferior descriptions 1/- to 1/6; lower on the average, better quality neglected. SYDNEY WOOL SALE. RECORD FOR SCOURED WOOL. SYDNEY, March 30. I (Received March 30, 5.5 p.m.) At the wool sales scoured reached 49d, a 1 record. SYDNEY PRODUCE. SYDNEY, March 30. (Received March 30, 5.5 p.m.) The following are produce prices:— Oats—Algerian fced k 3/9 to 4/-; white, 4/1 to 4/2. Maize, yellow 5/3; white, 5/-. Potatoes—Tasmanian £6 10/- to £8 4/-. Onions—Victorian £8 10/-. ADELAIDE, March 30. Oats—3/-.