FINANCE AND TRADE

Dominion, Volume 13, Issue 259, 27 July 1920, Page 6

FINANCE AND TRADE

LONDON MONEY MARKET DULL THE GLUT OF MEAT London, Jttly 23. Jhe money market is dull and featureless, and likely to remain so, as tho fear of a higher l>ank rate ill tlio autumn appears to have entirely disappeared. The ■ course of foreign exchanges, especially the fall on American, lias caused eomo unpettlement, but tho American m to a largo extent quite normal, duo to the preparation .to pay for produce which Britain.;and the Continent will import largely from America in tho closing months of the year. It is unlikely that the value of the pound sterling in Now York will Teach a very low level, as tho trade balance is improving:. Stock Exchange Business Restricted. t Sir. Lloyd George's speech on tho Polish question, coupled with disturbances in Ireland, has caused eomo disquiotudo on tho London Stock Exchange, where business is considerably restricted; but prices aro generally fairly maintained. Reports from Germany state that Mexico is endeavouring to regain her position as tho largest silver producor in the world, and is arranging to have all mines worked (even those hithorto regarded as unprofitable), partly at tho Government's expenso. Wheat prospects hare greatly improved during last month. It is now. certain that America, Canada, Argentina, and India will all havo surpluses. Drop In Freight Rates. Freights continue to decline, as the supply of cargo dieamers largely exceeds the demand, particularly in tho American trade. Ono steamer was chartered early in June to carry wheat from Montreal to Antwerp, at 16s. Gd. per quarter, "he same steamer wants a similar charter at the end of Augusifc, and the best prico obtainable is lis.

The position of the tallow market is full of interest. Good authorities believo that the last decline has brought values down 'to a basis ait which business can be done. Meanwhile, Australian shipments are arriving for- which purchasers paid over 100s. per cwt. forward, whereas itho present value is only about 60s. per cwt.; but the last of these contracts terminates at the end of the month. Considerable quantities were purchased by the Dutch, at prioes above 100s. per cwt. months ago. It we.s intended for Germany, but mo6t of this was sent back, as the Germans could not afford tho. price. It ig now likely that there will be a brisk demand from Germany with some recovery in prices.

Disposal of Government's Meat Stocks. Trade in colonial meat is restricted by the large quantity of 'inferior offered. Buyors aro mostly refusing to take any but the_ best. Tha suggestion is made in certain quarters that the Government would' do well to boil down its hugo accumulation of stale meat, both hero and in Australia and New Zealand, rathor than face -the inevitable cost of storage, interest, and further depredation. Advo. fates of this proposal point out that probably the actual, loss on boiling down would be less than tho Government would incur if it held on. Lt would also enable_ 'tho expensive establishment of the Ministry of Food to be dispensed with. This plan would clear decks for the new season's New Zealand meat, and prevent further lowering of the reputation of colonial meat, which is already greatly prejudiced by the marketing of inferior stuff. The Government holds about sixty thousand tons of moult here, end it is estimated that at the present rate of shipment it will still hold 3,000.00 ft eareaspes in New Zealand at tho end of December.

Business in tho Bradford wool market is chioflv of a hand-to-mouth description. Buyers nro waiting for prices to rencli tho lowest level. Spinners nro not disposed to lmv forward, hut will probably he compelled to •'rhtsfi'fx'i in the course of a few weeks. , _ Inhere is a possibility of the woollen mills operatives striking at tho end of She month for higher wages, which employers will refuse, contending that tho recent offer of 10 net cent, advance, was generous.—Aus.-N.Z. Cablo Assn.