MONEY AND MARKETS

Dominion, Volume 13, Issue 283, 24 August 1920, Page 5

MONEY AND MARKETS

DEPRECIATION OF ALLIED CURRENCIES

THE OUTLOOK FOR WOOL

AND BUTTER

By Telegraph-Press Asßociatlon-Oopyriel* (Rec August 23, 8.50 p.m.)

London, August 21. The Stock Exchange is quiet;. "The uncertainty of the European outlook is making everyone cautious,'but prices generally are firm, especially for gilt-edged securities. There is moderate inquiry for colonial stocks, chiefly New South Wales and New Zealand. There are some signs of a revival of ■. interest in speculative stocks, which lately have' bcea much neglected. A feature, of the exchange market is tho steady of Allied curencies, especially Italian. Prospects for Wool. _ The opening of tho London wool faiee is awaited with the keenest interest. Thero are signs of somewhat more active Home competition for gcod wools, particularly shafty merinos, but there is littlo interest in low-grado wools, as corresponding varieties of Argentine are about 6d. lb. cheaper. Tho huge Government stocks, in addition to tho-new Australian and Home clips, are acting as a drag on the market, causing an Impression that there will 'be some decline in values, but the supply of good merinos is considered to bo relatively small, and not to exceed the absorbable quantity. The United States is sending some orders and there has been more inquiry from that country than for some time past. The Continental position is. difficult, owing to the unfavourable' exchange. Apparently those countries that can pay are about full of goods, and those that cannot still want a considerable quantity. The falling market is 1 causing buyers to hold off, hoping for a further reduction, not because they do not want the goods. Metal Supplies and Prices, j Business in metals is generally restrict|ed by the European political situation and Labour uncertainties in Great Britain. A feature of tho copper market lias been tho reappearance of Japan as a seller of fairly large quantities for shipment during the-next two months. The position of tin, is regarded as fairly sound. Prices probably would have' advanced but for the European situation and La'bour questions. There has been 6ome 'buying on American account, and a moderate Continental demand, but tho Homo trade is 6lack. The lead supplies in 6ight are apparently ample for immediate needs, but future supplies' are somewhat doubtful. Thero may scarcity if consumption improves. Megywhilo business with customers very disappointing. Tho samo appljfs to spelter. The Germans are. Qftenp largo supplies for early shipment. iLia reported that German producers are nijv permitted to export 25 per cent, of .tMr output free of export duty. Butter in Short Supply. Tho present outlook regarding butter is that supplies will be very short for the next three months but thencefCFoVward there should bo material improvement, English and- Irish butters. 11 aro fetching veiy high prices, but consumption is limited on that account. Wfle Government i 6negotiating for tho pOTchase of the Danish output. GermtfflV, America, France, Belgium, Norway, -WBl Sweden are also anxious to buy. !, Ble two first-named are offering prices *ffi|siderably above our bids., Largo suppTOs of Canadian cheese are still ' amviil£, with a consequent steady decline'jfli' values. Tho Canadian factories are dhly getting about 25 cents per lb., which ffiey say does not cover the cost of production, so it is likely that thoy willlargfify make butter instead. '." (j Freiights Depressed... Freights continue to bo depressed, wifli a decreasing demand fo rsteamers. THe recent decline in Australian full cargo Kites has brought earnings to 6uch a point that with the continuously increasing expenses owners mo faced with the question whether it is not cheaper i'u ,ty up 6teamors. It is rumoured thdt the Government contemplate the layiiig up of 6ome German boats whichyhitei/ have been working at the barest profit. —Aus.-N.Z. Cable Assn.