TRADE REVIEW

Southland Times, Issue 21420, 15 June 1931, Page 7

TRADE REVIEW

■ BRIGHTER TONE THE BUTTER POSITION EFFECT OF OPPOSITION TO RUSSIAN IMPORTS TUnited Press Assn.—By Telegraph-Copyright.) (Rec. 5.5 p.m.) London, June 13. The Stock Exchange has assumed a decidedly brighter tone. Although the German news is disquieting most markets showed firmness. According to some newspapers one of the chief influences operating is the growing hope that the MacDonald Government will be defeated next week and that immediate dissolution will follow. On this assumption there is a considerable amount of bear covering, especially in home rails, which sent prices up all round. Gilt edged securities, of course, participated in the upward movement and the most satisfactory feature was the further improvement in Australian stocks which have been consistently moving higher from the moment it became known that the conversion loan was to be on a voluntary' basis. On this subject The Economist writes: “There is no doubt that from the standpoint of Australia’s credit the decision is wise. So, too, is .the determination to press forward with the other economies, for in addition to the direct substantial contribution they will make to the rehabilitation of the national finances, they will remove any fear of the bondholder being singled out for special treatment. The news that the Opposition is now co-operating is also encouraging for it holds out the hope that Australia is now on the threshold of a united national effort. Once assured of this the City will be eager to render Australia ail possible assistance.” Indication of the improvement in financial conditions may be found in the renewal of activity in new capital issues this week. In addition to the New Zealand £5,000,000 loan issue, £3,000,000 in debentures of the Buenos Aires Great. Southern Railway have been arranged and an issue of about £5,000.000 by Woolworths.

Apple prices have been fairly well maintained till now, but are becoming rather easier. Importers will not be surprised if they decline somewhat during the remaining months of the season, when they come into competition with European soft fruits. Although butter prices have given way slightly, the consumptive demand remains good and at the present retail price of 14d a lb there is not much likelihood of any falling off. The recommendations of the committee regarding the marking of blended butter .last week aroused considerable interest among importers, but no one seems to have a decided opinion as to what effect the recommendations, if adopted, will have. It is, generally thought they may cause the elimination of foreign butters from blends. This should cause an increased demand for Australian and New Zealand butter. The agitation of the newspapers against Siberian butter continues, although the imports of it have been unimportant in the last months, only amounting to 30,584 cwt out of. a total of 724,165 cwt. In the face of this outcry a number of leading multiple stores are advertising that they do not supply Russian butter, and one of the largest blending firms in the country announces in the trade newspapers: “We do not buy or sell, or handle any Russian butter.”

DECLINE IN TRADE

EXPORT OF VEHICLES INCREASED.

(British Official Wireless.) Rugby, June 12. The trade returns for the month of May show a slight increase in the value of exports as compared with those for April and March, but as compared with the returns for May of last year heavy decreases, both in imports and in exports, are recorded. The imports for the month were valued at £69,600,000, being lower by over £21,000,000 than those for May of last year, while the exports were valued at £39,600,000 and showed a decrease of £20,000,000. The reduction in values owing to the world-wide slump is to a large extent responsible for the decreases.

A significant feature of the figures is a considerable expansion on the month in the value of exports of vehicles, including locomotives, motor cars, ships and aircraft, which have risen from £2,400,000 to £4,300,000.