COMMERCIAL ITEMS.

Dominion, Volume 4, Issue 1033, 24 January 1911, Page 8

COMMERCIAL ITEMS.

liOXDON WOOL SALES. Eeceut cablo messages regarding the current London wool sales havo been more encouraging, for tko tone of the market was said •to be tending in favour of sellers. Probably there has been no actual' uttvanco in price, but bidding, ia more animated, and it seems likely that reserves are' being reached. The dullness of. the market as compared .with the September' nales is due--fa the slackness of business ill the Unittd States, and on the Continent of-Europe Early in December the report from Germany, was to the effect that trade was slackening. . Business' in tops and waste was far from brisk, and the demand - for yarns showed signs of declining, though spinners were offering, to. make concessions .in certain qualities. Business in sonic branches-of manufacturing,.especially dress goods and ready-made olothing Dualities, was not good. Added to this there is the fact that the wool clip for the season will show a substantial increase over that of 1909-10. Australasia will have a satisfactory increase, but few people ore aware of the - expansion in South Africa, which is regarded as the most hopeful source of supply for the next few years. Since the close of the war its exports have doubled, having gone up from 2CO.CCO to 400,000 bales. The increase in 1909 amounted to 100,000 bales, although some experts only expected- an increase from 20.CC0 to 30,000 bales. The increase for 1910 is expected to approximate to 50,000 bales. There are still millions of sheep in South Africa that are hardly worthy o! the nsmei and for Uicko first-class animals are rapidly being substituted.

FRENCH INVESTMENTS. V ' The annual savings of the French people, owing to . their- thrifty habits, • amount- tP a considerable sum. Until e_uite recently tho investments of tho bulk. of. the. population were confined to the national securities, biit- in the last year, or c-o foreign bands issued in Franco have been freely patronised.- According to one of the leading French economists,'no less than,£Bo,COO.CCO was drained, out of the country in 1909 as a direct conecnucnco of. these investments, and the .process continued uuabated in tho year just closed. Whilst this fact is all to the advantage cf the French investor—the rate, of interest payable oh foreign bends baisg appreciably higher than that oii internal loans—the amount. c£ floating, oapital available in France has necessarily' -decreased. Another factor affccti::g the -monetary position in France is.the poor return from.tho wheat, wine, r.nd potato crops last year. The lossca to the community; under thssc heads are estimated 02 r. conservative basis at not less than .€50,000,000, apart altogether from tho destruction of capital in Paris and othor large citios duc*> to floods. The past Kceon has been a very disastrous one to France,'and instead of being a creditor nation as ue-ual- the trade balance will show a debit that will ronuiro adiustment by shipments of gold. The figures of the Bank of Prance-reflect, the altered conditions, the note circulation nt tho end of-November showing -an expansion of over £6.000.000. while! tho gold held had-diminished by £10,674,000. Thpi tho "treasury of the would," as France is sometimes termed, has been .depleted to an extent that will limit its possibilities for -come little time to come. In pastyears : France . has always come to the rescue when the financial strain in London has become'oppressive, but under existing conditions the ranic, reliance cannot bo placed upcr. this source of relief. This fact, will doubtless influence tho course of events in all- international money markets, and will have a tendency to keep lending rates firmer :than usual.

':■■ . \ CONTINENTAL BANKING. -If the report of the Vienna, correspond-ent-or the-London "Times:' is true, that the-metallic reserve of the Austro-Hunga-rian Bank is to be at : the disposal of the Imperial -. Bank of Gorlnany,. it .is', as. tho. correspondent-afescrts a significant departure in International banking. The metallic reserve of :tho Imperial- Bank of Germans' averages-.about £53,000,000,. ami that of the':. Austro-Hungarian Bank about £70,000,009, together amounting to £123,CCO.OCO, but about £14,000,000 .of .this, is in silver. .The' Barik of; Franco has- a. gold reserve . ,of about £135,000.000, ■ and • also holds silver coin and bullion amounting to about :.£M,OCO,C3O, together -equal to £139.000,000 or, £16.000,100 more than the; German'.'and Austrian bjn|[s combined. But dcrniany "has • a-' war reserve of £6,CCO,CCO'.:in gold which lies at the Julian Tower at Breslau ready, for all emergencies. Even with this included. France can show more actual metal. . The Bank. of - Eussia. holds about £123,000,000 in gold, besides balances abroad amounting to another £20,000,000. The silver and subsidiary coin totals £0,000,000. Eussia and France together hold enormous gold reserves. Tho metal in the Bank of England was approximately £33,000,000, and yet with this small metallic reserve tho Bank of England control tho monetary affairs of the world. Tho danger, of holding so small a reserve has 'b6en the subject of frequent discussion, but so far nothing has been done to remedy what is admittedly a serious defect. The reason," why the Bank, of England can get along with so little gold is, because tho English people make the most extensive ute of the cheque. On tho Continent of Europe the use of the cheque is limited, .trade being conducted with the use of bank notes. Thus the note issue of tho Bank of Franco exceeds £Zto.000,000, in Germany the circulation is about £79,000.000, in Austro-Hnngnry about £92,000,000,' and 'iii 'Buss'ih .ab0ut..£115,000,000; . in the Hinted Kingdom is about £28,000,000. . Gold is economised in England by the use of tho cheque, it" is not so on tho Continent. CO3IMOWEALTH NOTES. The note issue of the Commonwealth,has come in for come sharp ■ criticism in papers read ot the .Science Congress now sitting in Sydney; in .the meanwhile, tho following from a, Sydney exchango i 3 interesting:— . "Roughly, :>.- million . sovereigns weigh eight tons, and the Federal Treasury is just now being loaded up with 'some .millions- of 'sovereigns in exchange for its notes. Mr. Allen, secretary of the-Treas-ury, and Mr. Collins, chief accountant, liavo, it'appears, done all the weighing— they could. not stop to count them; and they are then stored in tho strong-room. Bay and night this room and the Treasruy building are guarded by. a detachment of ■ soldiers from the permanent force.-fully armed. It will not bo very long bofore 50 tons of gold'will b? in theja stores. But really tho Federal note form;: Will - require bettor-, and more cartful guarding than the gold. No one can run off-with £50.000 in gold, much less a, million, but very great sums in liotcG might bo handled without much difficulty. It is a new lino of business for tho Federal Treasury.''

IKON AND STEEL. ''-. \ This iron trade furnishes en excellent guide to too prospects of. general trade; by some it is regarded as an unfailing barometer. The shipbuilding iudustry of Great Britain is ■ very active, but a certain amount of chcclt was given by the lockout," which',lasted for some little while. The steelmakers had plenty of time to completo their crdcrF. Steelmakers,, in. England invariably look to tho United StatEfl for at least an. indication of how loiig the wind is likely to continue in any. given direction. . Beeent advices' are not very hopeful, and if they, could be -accented as a rafe guide, comparative dullness throughout, the flr;t half of the current year would appear to bo inevitable. Although American steelworkors, at a conference, decided not to reduce quotations, cu tho grouud that. th»j:. .had already declined to., a level which fully discounted the situation, it is confidently reported that the United States Steel Corporation is meditating the closing down of. its great plant at' Gary. iir. James J. Hill, the Eaiiway King, who naturally is optimistic, has Siven it as his. opinion, that trado dullness will bo a feature of America this year. Tho railways are curtailing their building operations, and that means a great deal, to the ironmasters. Germany also fails to afford any conclusive ■ indication of what the near .'future is like'.v to hold in, store for the steel trade.' Taken a'toirothcr, the outlook for tho worid'r, iron and' steel, trades would -.inpear to.be more than usually objured, although ro far as tho U.-.itcd Kingdom is concerned; an indisputable ebu'.cnt of stronKth is the apparent readiness c£ rliipjuvners to extend their building programme. WHEAT A.VD FLOUK. By Tclcgraph-l'ress Assoclition-Copyrisht. London, Januarv 22. The total quantity of wheat afloat for tho United Kingdom is 2,350,0f0 quarters, and for the Continent 1,E35,CC0 cmarters. Atlantic shipments, 115.CC0 Quarter's; Pacific, 55.CC0. The shipments to Europe during the week amounted to 1,220,000 quarters, in"!udia': 133.CC0 from Argentina, 3SO.CCO frani Paissia, 200,000 from Dar-.uhia'.i ports, 78.CG0 from India, and 2CO,OC'O from Australasia.

. man commissioner's cable. The Commerce and Tourists Division of the Department of Agriculture, Commerce and Tourists, has received the following cablegram from the High Commissioner, dated London, January 21.. (Xotc—Quotations, unless otherwise specified, are average market prices on spot):—-. -Mutton.—The market is steady, stock of New Zealand is small, but the high prices are restricting business in the market. The supply of Australian and Eivcr Plate meets the demand, and they aro • Dcllins freely. Canterbury Cannot bo ouotcti. North Island, 4Jd.; Australian, 3Jd.; Hivcr Plate, 3jid. per lb. Lamb.—There is a dull sale for. all lamb, and the market has declined. Canterbury, 53d„ other than Canterbury, s|d. per lb. Beef—The market is firm, the 'stock on hand is v small, with good inquiry, especially, for fores. New Zealand hinds, 3}d.; fores, 3d. per lb.

Butter.—The market is firm, with more inquiry at higher-prices about the beginning of this week. .The market closed rather, quiet. Choicest New Zealand butter, 110s.; occasionally, Ills.; Australian, 1055.; Danish, 1165.; Siberian, 10Js. per cwt. Tho Arawa r.hipment of butter nr-

, ."<d in.good condition. Cheese.—Themarke'. is firmer. The Arawa shipment of che'eso arrived in good condition, and met with a brisk demand. Coloured'. 595.; white,. 575. 6d; per cwt.

Hemp.—The market is cuict, small business 'doing at about Quotation already given; viz;:—New Zealand, good- fair spot, per ton, £20 ss.;'.fair grade, £19 155.; fair current- Manila, £19.- Forward shipment about the,same.. The output from Manila for the week was 30,000' bales.

Wool.—The market is stronger. • • Cocksfoot Seed.—The market is quiet, hut firm. • New crop weighing 191b. per bushel per cwt. v/a3 offered at 80s. There are no buyers. ' -

. Kauri Gum.—Tho market is auict. hut holders. are- firm, small business doing, and' prices weak in market, Quotations are nominal. Ordinary to fair three-quarter-scraped, £8 2s. 6d.; fair halfscraped, 975. 6d.; brown fair half to three-quarter-scraped, 80s.; brown pickings, common to good, 455.; bush, fair to good, pale and amber-scraped, £8. Stock: 337 tons.

Eggs—Cold-stored Italian. 10s. 6d. to 12s, per 120; Austrian, Bs. 3d. to 10s.; Danish, lis. 9d. to los. 6d.

FEOZEN MEAT. By Telegraph—Press Association-Copyright London, January 22. The Frozen Meat Trr.de Association's Smithfield market Quotations- for tho undermentioned classes of frozen meat are based, on actual sales of not less than one hundred carcasses of mutton or lamb, and ..twenty-five. ■ quarters, of beef of fair average-nualilv.' The quotations are not for selected'lines, but for parcels fairly representative of tho bulk, of tho shipments now on tho market. Tho prices which follow are on an average a farthing per lb. more than the' value ex ship, this difference representing an average cost in expenses, handling, conveyance, ana selling the meat:— .Jan. 14. Jan.2l. ilutton— - - ; ( . . .. - d, - -d. . -. ' Canterbury, light ;....' — — Canterbury, medium — "— ■ Canterbury, heavy .'. — — Southland- :.. '....-. — — . North Island, best 4J ' 43 North' Island, ordinary... 4 5-16 4 3-16 Australian, light 3>. 3& ' Australian, heavy 31-16 31-16. Elver Plate, light .'. 31, . 3J - Hiver Plate, heavy 3j 3j ■ Lamb— Canterbury, light ....;.... — 5J Canterbury, medium ..... — 54 Canterbury, heavy. .'..;. — ' 5J : Southland — — North Island, selected... — — ' North Island, ordinary... — . 5J Australian', best 43 41 Australian, .fair ■ -45 4J Australian, inferior ....... 4 3? Itivcr Plate ..:....;...... 43 4J fleetNew Zealand, ox fores ...' 22 3 . Now Zealand, ox-hinds ... 3i 3i • Australian, ox fores -211-16 211-16 Australian, ox hinds ...... 3J 3? . Eiver . Plate, ox fores ... 23 215-16' Itivcr Plate, ox hinds ... 37-16 37-16; Rabbits' are quiet. Best largo Sydney, ex store, 16s. to-16s. -6d,; young, 15s.

.INVERCAIt'GILL WOOL SALE. . (By Telegraph—l'rcss Association.) Invcroarglil, January 23. The" second wool sale of tho series was held to-day. The. total number of bales offered.was 13,733, of which 3156 wore pass-' id. The -greater part of the -withdrawnlots- were station clips, which the owner 3 expressed .their, determination to consign to London 'rather.than- accept the. reduced prices offered here. The usual . buyers vera' present, with the exception that Americans were , not- represented..- Southland -buyers entered largely into competi-tion,-and were actively -concerned in-main-taining a bolter price than would havo otherwise • been current. Crossbred wool formed tho greater part of the catalogues, and with an. average drop of. a penny per 1b... a 3. compared with last month, growers had to be' con'c'nt with- a-bout 3d. per lb. less than in January of lost year. Lack of! American competition had a decided hearing on these results, more particularly in .regard to hogget wool. At no time was competition very animated, except for the better lots. Bellie3 and pieces, whioh wei'o a fcaturo of last month's sale, dropped tmitc 2d. per lb. Hogget wool averaged BJd! to 9Jd.; extra, good, up.to lid. liwc woo! averaged 73d. to Bid., a few !ot3 up to 10Jd., with inferior ranging down to sd. Inferior. wools suffered tho greatest drop. Of tho finer grade wools.. Murray, Hobqrts.and Co. purchased a fair o.uantity for Dominion manufacture. A3 against the top'.-pr'ico ;of 13Jd. last, January,; Hid. was ' the best,price to-day. Though. some drop was anticipated, growers arc rather dowhoast at tho result of the sale. Tho.quality qn the whole was not so good as last year; fleeces beiue earthy and station clips infested with biddy-bids.' through weed having ripened earlier than in previous years.