TRADE CONDITIONS

Evening Post, Volume CXI, Issue 33, 9 February 1931, Page 12

TRADE CONDITIONS

BRITISH SUMMARY

AUSTRALIAN STOCKS

(Received Oth February, S a.m.) ' LONDON, Bth February. :■ The' Stock. Exchange.has again relapsed to .dullness)' partly, owing to the :temporary stringency of the money market, and also the forced selling to meet income .lax demands and the,-rumour that the Government contemplated a big reconstruction loan. This rumour caused a considerable, weakness in gilt-edgeds, but following Mr. Philip Snowden's denial they recovered. Australian stocks have held their own veil, the December trade returns and the result oE the Parkes election creating a good impression. The news o£ ii possible breakdown of the Premier's Conference has so far not;affected stocks, us it was only published just as the Stock Exchange was .closing. Although butter 'prices do not show; any great improvement, the tone of the market is sound, and a good volume of business is passing. It is estimated that the consumption of butter in Great, Britain for some time past has been about seven thousand tons a week. In addition, there have been considerable sales of colonial to the Continent, where supplies are beginning to get short. Small quantities have also been sold to Canada, while a considerable amount has been taken by the Irish Free State. Following the reduction of duty, it is believed that the Free State will import a thousand tons of Australian and New Zealand butter in the next two months. There is talk of a possible further reduction in duty, with preference for the Empire. A somewhat surprising effect of the hard times and the consequent need for economy is the good demand for Empire wines. According to a circular of one of the leading London wine firms, the public is perforce turning more and more from dear spirits to cheaper sweet wines that possess high alcoholic strength and provide the required stimulant. The circular continues: "The standard and quality have not been consistent, but that is not surprising when it is considered how rapidly the demand increased."' ■