FINANCE AND TRADE

Southland Times, Issue 19516, 16 May 1922, Page 5

FINANCE AND TRADE

REVIEW OF HOME CONDITIONS STOCK EXCHANGE FIRMNESS MAINTAINED NO REACTION IN WOOL. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, May 13. International politics had a somewhat disturbing effect on the Stock Exchange early in the week, but Mr Lloyd George’s and M. Barthou’s denials of the sensational reports of the rupture of the Entente quickly dissipated the feeling of uneasiness, and there is now a distinct disposition to take a hopeful view. Business has certainly been on. a reduced scale, but no weakness is apparent anywhere, and gilt-edged closed quite firm, with colonials tending upwards. Home securities, especially railway, received encouragement from the confidential tone of Mr Baldwin’s speech on Thursday, but industrials do not yet show increased activity. Wireless shares are a notable exception with a strong demand and rising prices, doubtless owing to the recent wireless telephone development. The money market is still plentifully supplied, and rumours are again current that the Government is likely to take advantage of the present case to issue a large funding loan in the comparatively near future. Apart from £260,000,000 now under process of conversion, and the large sums outstanding bi Treasury bills, the Government has to deal with about £600,000,000 of debt maturing withing the next five years, and there is also £2,000,000,000 of 5 per cent, war loan. It is suggested that the Government’s pending proposal will offer holders of war loan oportunity to exchange into some longer dated loan. There is not the slightest sign of any reaction in wool, and it is expected that the present sales will close on Thursday with prices at the highest point. Surprise is expressed at this strength, considering that the manufacturing end of the trade is by no means confident, but there is a strong speculative spirit in the raw material market, apparently induced by the expectation of the early passage of the new United States’ tariff, and hope that the Genoa discussions will open channels for the export of large quantities to Russia. The latter factor, however, is largely responsible for the recent appreciation of low medium qualities. The position of the apple trade is causing some anxiety among importers. During the last fortnight upwards of 400,000 cases of Australian and New Zealand arrived, of which some was decidedly in an unsatisfactory condition, causing buyers to exercise much caution. It is also stated that there are some weak holders who are compelled to clear their stocks below proper market rates. Fortunately, no further arrivals are due for about ten days. Importers hope the market will be cleared before then and that the buyers will become keen again. Weather conditions are cold, and all European fruits are very backward, so things ought to improve for the latter half of the Australian season if only the apples come in good condition. Further instances are reported of apples which externally appear sound turning brown inside, the last case being the Fort Sydney’s consignment, of which the insurance surveyors had to examine a considerable quantity with unsatisfactory results. There is much controversy regarding the cause. Shipowners contend it is due to an inherent vice in the apple, and that it is not due to any fault of the ship. Some im-, 'porters assert that it is due to too close stowage or non-circulation of air in the holds, pointing out that the trouble only occurred on certain vessels, whereas the fruit shipped on other vessels at the same time and from the same orchards, arrived in perfectly good condition. The matter is regarded as serious, and is likely to cause the underwriters to increase the premiums or refuse apple risks altogether.