FINANCE AND TRADE.

Hokitika Guardian, 16 May 1923, Page 4

FINANCE AND TRADE.

UIUTrSIJ CONDITIONS RFA JEWED. LONDON. May 12. Tee Slick M:,change has expel iciuct a decided set-back during, the .past week, but it has been only a mild one compared with the great steady increase in value-. which has been going; on almost mi in tor rutelly for twelve months. This reaction r, only a natuiiil sequel and is attributable mainly to seme forced liquidations. Tt may be described in Stock -Exchange parlance ns a “shake-out of ihc wont, bulls.” Several causes have contributed to this, notably the continuation of the .Ruhr trouble, with the ecnser|i:cnt fall of the marie and franc, rumours of the financial difficulties of outside brokers and the intimation by some of the banks of the intention to reduce their customers’ loans. Industrial shares were affected by the decline in raw material, especially rubber, and there was considerable unloading. The weakness affected industrials chicdly. but spread to gilt-edged securities when the i«sne of a £'20,000.000 Indian loan was unexpectedly announced. Tin’s fell like a bombshell on the market, and the price of the existing Indian 4.1 per cent stocks fell 22s 6d. Previously the gilt-edged market bad been strong, as was illustrated by the rapid quotation of the New South AA'nles and Xew Zealand loans. Ire decline of the latter to a discount cf 17s Od is attributed to sales by ‘'stags' ’. THE T.XCHANDES. The foreign exchange market has been very dull. Franco’s reply to the German Note caused the utter demoralisation of the mark which is now called at 195.000 to the .•€. The most unsatisfactory feature lias been the steady fall of the New- York rate for sterling, which, however, may be regarded as partly seasonal and partly due to the reparation deadlock and the provision for meeting Crest Britain’s nbHga.tio.lis to the l nited States Government. Tt also seems ;ortain that New York lias taken a bearish view of the European situation since the publication of the German Note. BRIGHT OUTLOOK FOB WOOL. A leading authority on the word trade, reviewing the situation, says the values of raw material are. undoubtedly being determined by the more prosperous conditions in the United States and Japan, and on the Continent. The stocks of wool and tops . in France and Belgium are comparatively small, despite recent heavy • purchases,

and apparently there is no reason to expect any material diminution of their demand, though Germany shows considerably restricted purchasing

power. Conditions in the United Stales are very satisfactory as regards consumption and urices for foreign wools are being strcntghened by the high ligures which are being demanded for the new domestic clip. Most mills seem to have sufficient orders to keep them fully employed for some months to come. The prices of cloths are being advanced to cover the rise in wool ami wages. Consequently large purchases of raw material are being made to meet: the heavy machinery demand for the business in hand. It is impossible to gauge what may he the effect of these high prices on next season's United States demand, hut at the moment American ourehasings are exercising a dominant influence on wool values. THU BUTTER MARKET. There are no signs of improvement in the butler trade, although the downward movement appears to be checked for [lie present at any rate. There is .‘.mile enquiry for [lie finest sorts, hut actual business is almost negligible, as most agents have instructions from Australia, and New Zealand not to sell at the present low prices. A moderate estimate of the butter in -lore in the United Kingdom is -lliOdU:) boxes, and though this may not srem m impe-sihle cpmantity to clear when one recall- hove rapidly the huge Government stocks wore disposed of early psioo . it must lie borne in mind that d is "all a question of price. Butter -onsumption i- undoubtedly improved m the lower retail prices of Hid to lSd . |b. f,.r Colonial • but weather condition-- are favourable to Homo production. am! the European output is -i adilv im reiwim.:-. and practically the ~I.; | • of t'. • Haiii-li exports are rom--,;y ! , Civ I Britain. Danish to-day (jU'.tei! above lot-, roughly about (is above X>ew Zealand. While Danish sunidies continue as heavy as they are iikelv • to do for some time, there is little hope of any improvement in the demand lor Colonial, except Jit mate, udlv reduced prices. A Pl’l.lo MARKET- STEADY. The apple market continues to be

steady, thanks chiefly to the improved quality of recent arrivals, most of which are now mature and veil cadt'uved, almost the only fault being the prevalence of hitter pit. which has ruined many otherwise fine cases ot Cox’s. Importers are again urging the desirableness of shippers confining themselves as far as possible to the best varieties of apples. In pre-war days, when freights and other charges were about half the present figures, it was possible to sell even inferior sorts at a profit, but with the costs now approximately 10s a case, it is not a. paying proposition to ship poor varieties.