British Trade Review

Stratford Evening Post, Volume XXXX, Issue 2, 4 September 1923, Page 7

British Trade Review

Tr'E FINANCIAL OUTLOOK. t'lusn AaniH-'iauuii— Copyright. Aus txalian and N.Z O'ble Association. London", September L

Tlio turmoil of international politics has passed unheeded on the Stock Exchange, and during the past fortnight, a surprising amount of business for tho time of year h:'.s beon done, and the prices generally have been worked up. Starting vtth gilt edgeds, tho firmness spread to almost all sections of the market, and though in the more speculative shares like oils and mines the demand comes largely from professional operators there has still been a fair amount- of genuine investments. The buying strength of gilt-edgeds is th G outstanding feature, and it seems likely to continue, for the money outlook is most satisfactory. The capital issues in August were the smallest since records were kept, amounting to only £1,2.16,000, or which only £422,000 wa s placed in the open market. The issues for the first eight months of tho year also show a. considerable declino from 1922, being just under 220 millions, ' compared with 513. The foreign exchange market was most erratic, and it seems hopeless to expect anyth'ng like stability until tho Reparations controversy is settled. Tho German mark ha s gone deeper and deeper still, at one time touching fifty-five million to the po'md. Tlio cause of tin's apparently is to be found in the Reich Bank return, showing that the note circulation doubled with'n a week. The Government expenditure l>etwcen 10th and 20th August was 305 millions marks, compared to 117 millions during the previous ten days. One effect of the further demoralisation of the German cun-cn-y has been to check the imp-ovomont in t,he Belgian and French currencies, which had been showing signs of recovery, especially tho Belgian, which on 28th August M'as at 05.10, and now relapsed to 08.6*5.

THE WOOL INDUSTRY. The opening of tho London wool sales on Tuesday i 8 awaited ivltli keen interest, the general impression being that merinos and fine crossbreds will show an advance in values. Tho improved inquiry in Bradford during the last, fortnight is apparently duo to this belief. A largo proportion of the offerings will consist of wools of tho Continental type. The prices for them will, of course, depend mainly on Continental competition. Germany, Belgium, and Franco are expected to operate, but so far as is known the American competition is likely to be limited.

BUTTER. The butter position appears to be strong, and there is a decidedly dullish feeling in the market, as is usual at this time of tlie year. Supplies from all sources are diminishing, and for the next two months the quantity arriving will he small; consequently the retailers are buying freely to fill the requirements during this lean time, and a further increase in wholesale price R is not improbable. Much, of course, depends upon what effect the higher prices will have on consumption. Already the retail figure*; have been raised to Is 10d per lb and even thi s price leaves little profit for the retailer. If, as seems likely, the retail price will bo raised later to 2s, there may lie reduced consumption, but the middle-class public has returned to the butter habit, and though the poorer working clashes may bo compelled to revert to margarine, of which the very best is selling at Is. tho consumption of butter is expected still to be sufficient to absorb the limited quantities which will arrive until November. It is interesting to note that Danish and Now Zealand butters are now fetching practically the same price, Danish 190 s to 1925, Now Zealand 188 s to 190 s.

I CHEESE. Tho recent strike proved a blessing in disguise to the cheese market, for it caused such a shortage that from the moment the delayed ships commenced to discharge, buyers have been actively competing, and contrary to tho general expectation a. fortnight ago, prices advanced nea'ly 10s in the past week. The strength of tho market was greatly assisted by tho United States' purchasing of largo quantities of Canadian, probably as a sepculation, for it is said that somo of the American purchase may ultimately bo shipped hero. It is unfortunate there is no Australian cheese on tho market to benefit from tho enhanced values.