THE EXCHANGE MARKET

Wanganui Herald, Volume LIII, Issue 160724, 10 August 1920, Page 3

THE EXCHANGE MARKET

THE FALL OF THE HOLLAR. LONDON, August 7. The dominant feature of the exchange market has been the fall of the dollar, which came sooner than usual this autumn, one contributing factor being the disturbed outlook ou the Continent, and another being the increase iu American transportation costs. Yester' day’s recovery is attributed in some quarters to France having made con. siderable progress in preparations for the repayment of the 250,000,000 dollars due in October, also the rather more favourable aspect of the Polish question. Other foreign exchanges to some extent reflected the relapse iu the American rate, but the advances wore mainly due to war rumours, Fears of trouble regarding Poland caused uneasiness on the Stock Ex change, with general depression and slackness, particularly in the industrial section, whore it was further accentuated by Irish events. Shipping shares are weak, with a reduction of some charter rates. One bright spot ou the Stock Exchange is gilt-edged securities, which offered greater resistance to the down wan’d movement than other securities. This is more attributable to an anticipation of more money finding its way to the Stock Exchange for high-class investments, rather than for “industrials,” which are likely to be affected by labour troubles, dear coal, railway charges, and the general dullness of trade, which appears likely to continue. BUTTER SUPPLY DECLINES. Butter supplies are steadily declining, and the weekly allowance will be shortly reduced to one ounce. The position cannot possibly be relieved till colonial butter begins to arrive, and even then supplies are likely to be far below requirements. Denmark has put an embargo on the exportation of butter and cheese owing to a shortage of milk. The wholesale price of Irish is about 4205. The Australian delegates, Messrs Osborne and Sinclair, are iu negotiation with the principal importing lirnis respecting the purchase of Australia's output of cheese. A decision lias nob yet been reached. The British fruit crop is turning out very badly. Apples show almost the smallest yield on record, and pears are nearly as bad. The tanned goods trade is very flat. Many linns hold largo stocks dearly bought, which they cannot sell, except at a heavy loss. The position is made worse by the failure of a firm which has been speculating heavily. It is reported its deficiency is iiloo,ooo, and it is feared its stocks will be thrown on the market. Continuous rain is seriously affecting British crops, and the position .is approaching disaster. Wheat and barley is so badly laid that it cannot be cut by machines. Abroad the harvests are mostly favourable. It is unofficially estimated that the American wheat yield will be about 550,000,000 bushels, and the spring yield about 285,000,000 bushels. METAL MARKETS STRONG. Since last sales there has been a steady demand for tallow, and a large quantity has been purchased for the Continent. Present values are about 4-s above those of 1917. The rabbit trade is dull. Supplies are heavy, all stores iu England being full of “colonials,” of which a large proportion is more or less damaged. These will be difficult to move, but traders expect a good demand for all sound rabbits when the season opens at the end of the month. The present value of “large blues” is about 38s a. crate ex store. The metal markets are strong all round, as a result of the decline in the American exchange rates, which led to large purchasing, especially of tin, of which many “bulls” show an upward movement, helped by favourable statistics and a rise in the East, where the price exceeded ,£3OO. The dominating factor in lead has been purchasing for shipment to America.