COMMERCIAL ITEMS.

Dominion, Volume 4, Issue 1080, 20 March 1911, Page 8

COMMERCIAL ITEMS.

, LONDON MONEY MARKET. The London money market shows no important changes in the rates, except that short loans aro being done at 7s. 6a. per cent, less than in the previous wee,;. Banl; rate asd the rate for three months bills are unchanged. The Bank o. England has afforded eonsideraole support to Lombard Street, for the amount o£ the other securities in the banking department has gone up irorn ao2C,6ic,CCO to £35,606,000, a:i increase of noarh £/,U(UIiJ in the week. The baillt, by reason of its large holding of Government deposits, which invariably show expansion m the closing month of the financia. year, is v.-ell able to support the monoy market, and to meet all demands. The exchanges must be working ic favour of_ London, probably because of the influx ox visitors for the Coronation, for there is a bis increase in tho metal reserve in the Issue Denartmcnt, the amount standing at £ .•' 874 000 as against 37,422,000 in the previous week. Furthermore, the bill rates in Paris and Berlin have advanced. :.loney should be very plentiful in London dunne the next four or live months.

THE WOOL MARKET. The Loudon woo! sale is proceeding very satisfactorily, and tho Continental support has developed some strength. J hero arc indications now that some descriptions of crossbred wool will sec better money before the Gales tormina.e; tiic market shows a strong tendency to ad-, vance. The position of crossbred wool at the January sales was quite unfavourable, according to tho correspondent or a Melbourne contemporary. It states:— "The present position of the market in regard to crossbreds is undoubtedly a aourco of keen disappointment to all concerned. In this country, it was certainly anticipated that a. good deal of support to these descriptions would be forthcoming from the "United States, and probably the experience of operations for America being eo restricted as they have proved has much to do with the uncertain; feeling liow prevalent'in Yorkshire. Consumption is maintained thcrd on an; extensive scab; spir.ners have large .contracts in hand for yarn, which, it is understood, are only partially provided for as regards tops and raw material, and yet there is a general uneasiness with reference to the 1 future, and users continue to aid the depression in prices by abstention from buying. What the outcome of that which just now is occurring will be it is difficult to foresee, but the market is certainly such a one as has often presented an exceptionally favourable opportunity to those possessed of grit enough to work against the current, and buv when others are content to stand with folded liar.ds and look on. Whilst occasionally a parcel of greasy crossbred to which as American or British manufacturer has taken a fancy realises' a ver.v hsah' figure, the great bulk of tho offermss sell with striking irregularity, at a reduction from the December level of 10 to 13 per cent. This, of course, refers to greasies; the declinc, as compared with the same period, in scoured anti slipe descriptions, ranges from 5 to 71 per cent." Tho comparative cheapness lOf crossbred wool has probably tempted some of tho more venturesome buyers, and, where one leads, others'aro .bound to follow, 100 much, however, must not be exncctcd of tho present favourable turn of affairs, because, in the course of two or three months, the clips of Europe and North America will be available, and a crooo proportion of th?sc clips will bo crossbred wool. Nor must it bo supposed that these clips aro r.egligible Quantitim. Europe will shear over one hundred million sheep, of which over 31,000,000 are in Great Britain, while in North .America about 60.0c0.000 sheep will como under the shears.

GEEJIAN AND AUSTRIAN BANKING. Some weeks ago a, cable message from London indicated that important bankine proposals were under consideration by Germany and Artftria, and mail advices confinm tliii. It appears that, the Imperial Bank of Germany lias made overtures to the Austro-llur.garian Bank for the establishment of a remarkable financial relationship between these two Great national institutions. In the first place, it weuld establish =. clearing relationship between the tv/o brinks, but, beyond that, it would, in effect. pool their cash reserves, bo that they would be available to meet their joint reo.uirements. Dr. do Bilinski, in making: reference to tho proposal on consideration of the renewal of the Austria-Hungarian Bank's charter, pointed out that, as the German Bank reciuire3 sold much oftener than the AustroHungarian Bank, the latter would be., if the proposal were adopted, the giver. At the came time, he admitted that Austria* Hungary would be the caincr, since it would bo protected acainst the dancers that sometimes threaten from the Berlin money market. More than a- million sterling, he said, had at one time been sent to Germany in a week, because the German market was naturally the mcst important for the Austro-Hungarian Bank, And it was always more profitable to let Germany have gold than to wait until international exehanEC rates bccame so unfavourable to Germany that they threatencd prejudicially to .affect the. money situation in Austria-Hungary also. However, the proposition has its political aspect likewise, and the suggested pooling of tho resources would never have been thought of" if it had not been considered that the joint -resource's would render the conntries stronger in a political and financial convulsion such as a war would certainly mean. It would extend the oftensivo and defensive alliance between tho two countries into the realm;) of finance. There will' be much interest attaching to tho development of the proposition.

THE METiL MARKETS IX 1910. In their annual report for 1110 the wellknown metal Arm of Avon Ilirseh, and Solin. of Halbcrstadt. state that, iu comparison to the previous year, tile consumption of copper lias considerably increased. According to information supplied by consumers, there can bo no doubt that, tho consumption of this commodity wil! still further increase. Imports into Germany diirine: 1910 totalled 207,419 tor.s, against. 137.826 tons m 1909. and export? 17,744 tons, acainst, 16,436 in ic[ij Inclusive of the German home production, and after deduction of imported pvritc--. and eor.tainine cooper which have aircadv been included the flguro of production, as well as of stocks held _ in llambure, the German inland consumption amounted to 203,675 tons, as nff.nns t94.499 tons in 1909. "As rosarcls the world's stocks of copper at tho end of 1910, these will probably bo 142.000 tons jr. round iieurcs. which, compared with tho same period ot the prcccdina year (when IW.OCO toil'! were held in stock) would mean a decrease of 25,000 tons, and a decrease ot 53 000 tons when compared with the iio.uw tons represented by stocks held at the end ' of June. 1910. The world's production in 1910 has been estimated at 850.CC0 ton", and the world's consumption at 915.000 tons. Prices averaaed £57 16s. for standard and ,€6l 15s. for best selected. Tho price of lead in 1910 averaccd from £13 to £13 10s. The lend syndicate which has been in existence since 1959. had little influence on the price. The German consumption of lead whs ns follows:—i'juv. 187 CCO tons; 1908 , 210,000 tens; 1509 . 2b,000 tons- 19'0, 215,000 ton-i. Transactions in zinc continued to exhibit, great animation. Thc'laruo rcouiremnnt of industries usnic zinc -in their manufactures resulted in zinc producer.-, the majority of whom are syn-d'.-atcd. having scarcely any stocks left at the beginning of the new year. Prices at the end of tho year closed at from £23 17s. 6d. t-o £24 (£23 at the end ot 1909). The German production of zinc wan 205,000 tons in 1907 , 216,400 tons in 1908, and 219 700 ton: 'n For 1910 tho production is estimated at, 206,000 tons, and the inland consumption at 201,000 tons acainst 188.000 tons in 1909. Tin, owing to the influence

of cortaiu interests which control a larcc portion of marketable supplies, establish a further tomieucy to increase in pri'.'c. The closing ouoiiition was £175. The German production in 1910 is estimated at 11.0C0 tons .(1909, 8990 tons: 1908, 6400 tons: 1907, 6000 toiis), while the Gcrraau consumption is estimated at from 19,000 to 20,QU0 tons (1909, 17.100 tor.a; 1908, 16.7C0 tons).

CUSTOMS RETURNS. Tho Customs revenue collected at the port of Wellington oil Saturday totalled £610 Os. 2(1.. tlie amount £or the week being JC18.890 ss. 4d. Compared with lac corresponding'periods of last year, the receipts for the past iiclit weeks show rw> under :— 1911. 1910. £ £ January 23 20,336 February 4 12,958 11,356 February 11 7.3',"2 21/67 February 18 21.0C6 9.335 February 25 ' 27.001 18,939 ■■March 4 12.614 11.988 March 11 13.225 18.346 ' March 18 18,893 10,338 138.312 122,105 The beer duty for the week totalled £248 15s. 2f!., as compared with £290 15s. 3d. for the corresnoudinc week of last, year.