Finance and Trade.

Hokitika Guardian, 23 August 1922, Page 4

Finance and Trade.

PRoSPi-CTS FOk fiUT’TER. LONDON, August 19. Contrary to' what might have beerf expected, the f'a'lllifb of the Reparations Conference did nf>t liriiig any reaction on the Stock Exchange. It certainly caused disappointment', hut no deplesSloiti, arid thbie who feared heavy liquidations, were agreeably surprised to find that there was’ lit)'' pi eSSitfe t’o

sell, even from Paris, whence it was

feared many selling orders.would come. On tlie cdfitVaty, when the Paris Bourse! reopened' 'dll’ Motkthy, after a tw«vdKys’

holiday, London received buying orders from France, and these had such an excellent effect, tlitit, although the money market wits very tight, • there was no appreciable decline in Stock Ex-

change values. The Stock 'Exchange Coriitnitt'ee has fixed September Ist ns the date for tho settlemeliV of pre-Wr aeebiitits. The total' diiirltllitifihtlts wlifett the exhhHrtge closed in July 1914, were £106,000.000. Since the armistice those have been steadily cleared off. and the amount outstanding is now less than £2,000,000

so that the settlement oanribt have much influence on market conditions, althdugh it ihiiy entail hardship on individuals who have accounts open in Grand truck and South American Roils.

The foreign exchange market has been demoralised hv the breakdown of the conference, and, with the German mark daily falling to fresh dbpths, there has been a cbllSitse ill most of tlife leading European currencies. In this condition of affairs it is satisfactory that tho value of the £ in the United States' continues to apjf'r’cdi.it'e, apparently because the Americans have confidence in British determination to face the facts of the European situation. At any rat'd, America shotvs no inclination to’gamble for a fall in the British £. The butter market is hardening as colo. nial stipplibs dfihlnikh, and prices ai ; e again higher. New Zealand choicest salted is quoted at 206 s to 208 s (exceptionally good 210 s) and unsahed 220 s to 2245. The outlook appears good, especially ns Denmark, is receiving: more enquiry from France, [lelgium, and

' Switzerland, but if retailers advance the price above 2s, the dciflhlid will he affected. The prospects for the opening ! of the new Australian and New Zealand season appear to be distinctly far : vourable, lor it seems certain there "ill not lie much butter over when the colonial stocks begin to arrive.

| Tile action of the Australian importers of dried fruits in deciding to hold j ollt for Letter prices lias had the de--1 sired effect, and the trade shows a marked improvement in all directions. Currants, especially, are moving freely aild' s'eV'Cial importers have cleared their stocks at the prices fixed at the meeting on August lltli. Sultanas, also, have been selling steadily at the fixed pnV'.'. Importers a'c highly gratified at the success which lias attended their action, and express the hope that the result will prevent any recurrence of slaughtering pi ices. The demand for canned fruits continues disappointing, and sales are small. The main cause of tile iiiisntisiartoiy position is the tin. favourable weather since Mav. which

has restricted picnic.s and boating and

similar outdoor functions. Another conti ibutor.v factor is the diminished spending power of the working classes. Owing to unemployment and lower wages they arc now compelled to give up luxuries, among which canned fruits must be included. There is also a glut "f fresh fruit.