BRITAIN’S TRADE REVIEW.

Timaru Herald, Volume CXXIII, 12 April 1927, Page 9

BRITAIN’S TRADE REVIEW.

Stock Exchange Cheerful. BIG BORROWING PROGRAMME. By Cable —Press Association —Copyright. Australian and N.Z. Cable Association. LONDON, April 9. The unexpected often happens on the Stock Exchange. Ail example of this happened this peck. Considering the troublous conditions in China, the heavy deficit in the national accounts, and the imminence of the Budget which must increase our already enormous burden of taxation, one might have expected the Stock Exchange to be nervous and depressed, but for some unaccountable reason present conditions are distinctly cheerful, and the Exchange closed yesterday with a display of strength that astonished members. There were marked examples of buoyancy in nearly all speculative markets, and the firmness of gilt edged securities inspired genera] confidence. The Government’s new consolidated four per cent, loan which had been at a discount for some time has now reached par, and scrips and several recently floated corporation issues are also improving steadily. The announcement of ihe Commonwealth’s new large loan had no depressing effect on the market, probably because it is a conversion and not new money. The terms of the issue received favourable comment in the newspapers. The loan remains open for both cash and conversion applications till the 2oth. * New Capital Issues. In connection with borrowing it is interesting to note that the amount ot new capita] issued in March was nearly thirty-five million, which constitutes a record foi March except in the bcom period of 1920. The fact that this heavy emission of new capital has not affected ®tlie existing securities is another illusfral’ou of the inherent strength of the slock markets. Apple Trade. The Australian apple season opened auapie’ously with sales of tile Hull portion of the Fernda'c’s cargo at satisfactory prices, and importers are taking a hopeful view of prospects. Americans are still arriving in large quantities, but their condition is mostly poor and they ought not to seriously affect tho demand for Australian and New Zealand grown apples. Meanwhile Australia’s publicity campaign is apparently meeting with success. All the newspapers to-day publish photographs of school children munching apples aboard the Fcrndale. Butter Market Steady. The position of ihe. batter market allows little change. There is a good consumptive demand and prices for Australian and New Zealand are maintained at 150 sto Ibis. The extraordinary feature of the trade is the enormous disparity between Danish—which has hardened to about 184 s—and New Zealand. The difference between Danish and New Zealand in pre war (fays used to be about 4s to Gs per cwt. The traders generally attribute this position to the unpopularity of New Zealand control methods, but one of them pointed out that it also was partly due to Denmark having recently instituted date stamping on its casks. It was at first thought that this stamping would tend to lower , the price of Danish, but so far it has had quite an opposite effect, for Danish, haying to be sold immediately on account of the date stamp, has been put Oil*the counter in the freshest condition possible, with the result that the -demand-has become bigger ilian ever. Other butter which is. free from control is, also fetching abnormally high prices compared with New Zealand, notably Argentine 146 s to 158 s, Finnish 176 s to 178 s. Even'.Siberian is making 150 sto 1525.