ON THE UPWARD GRADE.

Timaru Herald, Volume CXXXIV, Issue 18822, 10 March 1931, Page 9

ON THE UPWARD GRADE.

Commodity Prices Rise. FEELING OF QUIET OPTIMISM. United Press Association—By Electrlo Telegrapn—CopyrlgHt LONDON, March 7. For the first time since July, 1929, the “Economist’s” index of a number of commodity prices at the end of February shows an upward movement. Reassuring Factors. The “Economist” says: “Though the percentage of increase is only onetliird of one per cent, it is at least satisfactory that the prolonged downward sweep appears to momentarily be arrested.” “The upward movement continued this week has given rise to a feeling of quiet optimism, which was reflected on the Stock Exchange, where prices in nearly all departments showed a general improvement and closed yesterday with a strong tone. Apart from the rise in commodity prices, several other events have had a reassuring effect, notably the conclusion of the Franco-Italian Naval Agreement, the Indian Settlement, the reduction in railway wages, the result of the London County Council elections, and last but not least the political developments in Australia, which have brought about a considerable increase in values of all Commonwealth and State stocks.

Commenting on Australia’s troubles, an important London stockbroking firm, in a review of the financial position, says that Mr E. G. Theodore’s latest proposals give ground for apprehension lest a policy of inflation may be adopted. If the banks should prove unable to exert sufficient influence to prevent a permanent depreciation of currency, the strain involved in paying external debts might win acceptance of the invidious argument that loans were borrowed when the Australian pound and sterling were linked together, and could with justice be repaid in Australian currency when the link was broken. Any such repudiation of both the letter and spirit of definite contracts is, however, far from the wishes of all Australians who have any understanding of financial matters. At the very worst, therefore, the risk appears to be one of partial failure only, and of some postponement of the final dates for redemption of Australian stocks, a contingency which is already discounted in their price. Fruit Market. The prospects of the forthcoming Australian and New Zealand apple season are generally regarded as fairly favourable. North American shipments are still heavy, but are expected to steadily decline, and by the time the first Australians arrive, early in April, supplies from America are unlikely to be excessive. Another factor which should help is the shortage of Spanish oranges, due to damage by frost. Orange prices are steadily rising, and are expected to become so dear that the demand may be transferred to apples. The prospects for pears in the immediate future do not appear good, for the market is plentifully supplied from other sources,, and importers generally consider Australians should not arrive before April, by which time supplies from South Africa will be begining to decline. Butter Prospects. Although the demand for butter has slackened somewhat, prices are well maintained, and importers are hoping to be able to keep values at about the present level for a week or two more. The estimated deliveries at London for the last six weeks averaged fully 70,000 boxes weekly, so there will be no surplus stock. The Continental demand is declining as production there increases, but it is expected that the Irish Free State will require to import at least 40,000 boxes this month. The tariff duty of 4d per lb has hitherto restricted purchases, but efforts are being made to get this reduced if not completely taken off. Faulty Grading. The grading of Australian eggs and other food products met somewhat severe criticism at a dinner of the London Egg Exchange. The chairman (Mr Alexander Mitchell) said all wished to see Australia return to financial strength, but if Australia wanted to get back her business, she must see that the people employed in giving grading certificates were honest and straight. He declared that, without fear of contradiction, not only as regards eggs, but also other commodities from the Commonwealth which he had had the privilege of handling for over thirty-four years, some merchants here had been mugs enough to buy goods outside the regular channels and so could not hold anybody responsible except themselves. With all due respect to the development of Empire produce, he hoped it would go out to the people of Australia that the British trader only wanted fair treatment.