FINANCE AND TRADE

Hokitika Guardian, 14 June 1922, Page 1

FINANCE AND TRADE

CONDITIONS IN BRITAIN

LONDON, June 10,

Tlie nervousness about Ireland and the uncertainty regarding tho reparations question have had a chilling effect upon tlie stock markets and business all round lias been dull. Gilt edged stocks especially are weak and lifeless although prices arc below tin levels justified by the monetary position. Colonial stocks are also flat mainly owing to the weakness in re contly floated 4t per cent loans. Tho New South Wales issue is now quoted at 75s discount. It is generally colonia Governments that have over-estimated the improvement in the scale of credit and it is rumoured that the next colonial loan will he issued at 5 jxt cent. Another factor contributing to tin weakness of gilt-edged stocks is the fact that many people have been selliiif them in order to operate in Home rails in which there was considerable activity until this week. Furthermore, (lie nil derwriters of recent unsuccessful colon ial and foreign issues have been compelled to find money to take up their liabilities and the large losses of insurance companies, notably over the bullion in the steamer Egypt, have had a depressing effect. A feature of the foreign exchange market lias been the strength of the pound sterling in New York, where an optimistic fooling apparently exists regarding the British financial position. There has also been a market appreciation in the value of the pound sterling ill all important European centres. DATE A" PRODUCE. The dry. hot weather of the oast month is restricting the output of British. Irish and Continental butter. Fears of another drought like last year’s have caused a sharp rise in prices. Multiple shop owners and blenders have been buying colonial butter freely in order to ensure their supplies. and. as a result, there is hardly a box available in Toolev street. This week the Ballarat,’s cargo of 40,560 boxes was sold before it was discharged, and though over 300.A00 boxes of Australian and New Zealand butter are duo to arrive in June, there is likely to be insufficient to meet the demand for •another week or so. Enter on. too, it appears probable that supplies will be short, for the total afloat from Australia and New Zealand is considerably below that for the corresponding period of 1021.

The cheese market is strong this being chiefly due to the Americans purchasing Canadian cheese largely in anticipation of the tariff on July Ist- imposing a dutv of 7 cents a pound. It is et,situated that the Americans have bought* an amount equal to three weeks’ Canadian shipments to Britain, which otherwise would have been shipped here The- hot weather is also stimulating consumption. . FRUIT.

The dry weather is also proving beneficial fo tlie apple trade. Supplies of strawberries- and cherries are small, and their condition is unsatisfactory. In a normal season mid-June sees tho British markets flooded with cheap French cherries hut. this year, of the few suplilies that have arrived, a large proportion is almost worthless. Fair quantities of strawberries are coming forward from Kent and Hampshire, hut they are mostly small and tasteless owing to the absence <>T rain. The demand for Australian apples is well maintained. All sound fruit is selling well hut unfortunately brown heart is very prevalent, and is causing many by purchasers. This is regarded in a most serious ways Irv importers, some of whom say that thev will onlv make small advances next season in face • f lho possibility of a recurrence of this trouble.

WOOL. Tt is expected that the wool 'ales, opening on Tuesday will show little chantro from the A lay closing rates. “Bullish” factors are the expect alien of a good United States demand and the probability of a rapid sale of the merino surplus. Against these must he placed tlie fact that tlm Rradf r d market wants lower prices. Topiimicis are fairlv well storked again l contracts. and reports that mpmakiug sorts are cheaper in Australia make them cautious. The yarn trade remains active at moderately firm prices with the general turnover increasing. The piece goods trade is steadily im-

proving. Tlie heavy woolle.n t'-eie ihnws a marked improvement, especial. v the export trade. lVacficcMv ad the nills ,at Rat ley are running the fn’l forty-eight hours week.