REVIEW OF TRADE.

Star (Christchurch), Volume LXIV, Issue 941, 11 December 1933, Page 4

REVIEW OF TRADE.

Shipping Shares Recover in Britain. HELP FOR INDUSTRY. United Press Assn.—By Electric Telegraph—Copyright. LONDON, December 9. The Stock Exchange has been passing through a period of quietness There has been some hesitancy, but at mid-week the tone improved. Giltedgeds, which earlier were inclined to weakness, made a good recovery Dominion stocks show firmness all round, the Commonwealth conversion having had a good effect, especially on Australians. A feature of the last two days has been the recovery in shipping shares, following the Atlantic fares agreement and prospects of a temporary subsidy for tramp steamers. There is also a possibility, as hinted by Mr Neville Chamberlain, that the Government is taking steps to help the shipping industry generally. Rubber Markets. Rubber shares had a serious setback recently, as the expected restriction output agreement has not yet materialised, but, although the decline in shares has been serious, prices are still in many cases 50 to 60 per cent above the lowest quotations of last year. Australian Prospects.

The financial editor of the “Spectator” in a laudatory article headed, “Advance Australia,” congratulating the Commonwealth on the success of its conversion loans and the enhancement of credit, concludes with a word of warning. Referring to past extravagances of successive Australian Governments, which led to the excessive borrowing of external loans, the editor says: “In any case, this borrowing would have brought about a serious condition in Australia, and when the j actual crisis came it coincided with I conditions in this country which made | it quite impossible for Australia to i raise fresh loans. By courage in facing j the years of strain and most honour- ( ably keeping all engagements, Australia has done much to retrieve her high; credit. Nevertheless. Australia will bej wise to recognise that not all the j causes of her trouble were beyond heri previous control. Also, in considering! the success of the conversion opera-, tions, full recognition must be made of l the extent to which they were helped by the cheapness of money throughout 1 the world.” Butter Shipments. The butter position has been to some l extent clarified by the decision of the; Australian and New Zealand Dairy i Boards to spread the shipments more! evenly, and the belief is expressed that this action should prevent unnecessary fluctuations in prices. The news already has brought a firm tone to the market, and traders are hopeful that they will be able to maintain prices, especially' as consumption continues good, as shown by the reduction of cold-stored stocks at the end of November to 463,000 boxes. Egg Market. Cold weather on the Continent has caused smaller production of eggs and arrivals of them declined consequently. There has been a slight improvement in the price of Australian, but they still are coming in such large quantities that there seems to be little prospect of any material rise. Small arrivals of New Zealand eggs of excellent quality are making about the same prices as Australians. Australian Wines. The arrival of wintry weather brought about an increasing demand for sweet, strong Australian and South African wines and distributors report a lively trade. The “Wine Trade Review” says: “Regarding Australian wines, it is regrettable to note continued instances of price cutting, both wholesale and retail. This is a displeasing feature and bound to embarrass future prospects of the trade. Recently two retail quotations came under notice, both from big trading firms, one offering a well-recommended sweet wine at 27d per bottle, and the other at 28d. Such quotations must seriously disturb the plans of those who are trying to stabilise prices of such wines. Moreover, the continuance of such quotations increases the public impression that Australian sweet wines can be purchased regardless of the quality element at absurdly low figures, whereas the experienced trade knows that these wines cover a variety of qualities comparable with those of moderate cost emanating from Portugal. It might be of advantage to the Australian wine interests to make generally known the fact that there are various qualities of Australian sweet wine, for it is to be feared that the public, as a whole, are not aware of this. The South African sweet wine market does not appear to be troubled in this respect. As regards the light wine sections of both these Empireproducing areas reports are most promising with the flagon trade well to the front.”