FINANCE AND TRADE.

Hokitika Guardian, 6 September 1923, Page 1

FINANCE AND TRADE.

BRITISH CONDITIONS REVIEWED. LONDON, Sept. 1. The turmoil of internatioanl polities has passed unheeded on the Stock Exchange, and during the past lortniglit a surprising amount of business for tho time of the year has been done. Prices generally have been worked up. Starting with gilt-edgods, the firmness lias spread to almost all sections of the market, and though in more speculative shares like oils and mines, tlie demand conies largely from professional operators, there lias stiil been a fair amount of genuine investment. The buying strength of gilt-edgods is the outstanding feature, and seems likely to continue, for the money outlook is most satisfactory.

The capital issues in August were the smallest since the records wore kept, amounting to only £1,216,000, ®f which only £422,000 was placed in the open market. The issues for the first eight months of tho year also showed a considerable decline from 1922, being just under £220,000,000, compare with £513,000,000. The foreign exchange market is most erratic, and it seems hopeless to expect anything like stability until the reparations controversy has been settled. The German mark has gone deeper and deeper still, at one time touching 55,000,000 to the pound. The cause of this apparently is to he found in the Reiclishank return, showing that flic uoie circulation has doubled within the week, and that the Government expenditure between AugustlOlh and 20th was 365,000,000 marks, compared with 117,000,000 marks during the previous lon days. One efiect of the further demoralisation of the German currency lias been to check the improvement in Belgian and French currencies, which had boon showing signs of recovery, especially the Belgian franc, which on August 28th was at 95.10, aiul has now relapsed to 98.05 to the £. THE WOOL MARKET.

The opening of the 'London wool sales on Tuesday is awaited with keen interest. The general impression is that merinos and fine crossbreds will show ail advance in values. The improved enquiry ill Bradford during the last fortnight is apparently due to this belief. A large proportion of the offerings will consist of wools ol_ the Continental type. Prices for them will of course, depend mainly ou Continental competition. Germany, Belgium, ami franco are expected to operate, but so far as is known, .American competition is likely to he limited. BUTTER AND CHEESE.

The butter position appears to he strong, and there is a decidedly bullish feeling- in the market. As is usual at this time of the year, supplies from, all sources are diminishing, and for the next two months the quantity arriving will lie small. Consequently retailers are buying freely to fill their requirements during this lean time, and a further increase in wholesale prices is not improbable. Much, of course, depends upon■ what- efleet- tlie higher prices will have on consumption.” Already the retail figures have been rnis : ed to Is 10d i>er pound, and even this price leaves little profit for Die retailer. If, as seems likely, the retail price will be raised later to 2s, there may he reduced consumption, but the middle-class public has returned to the butter habit, and though the poorer working classes may he compelled to revert to margarine, of which the very best- is selling at Is, the eonsnmptoin of butter is expected still to be sufficient to'absorb tlie limited quantities which will arrive until November. It is interesting to note that Danish and New Zealand butters are now fetching practically the. same... price—Danish 190 s to 1925, New Zealand,lßßs to L'Os. The . recent strike-proved a.-blessing in disguise in the cheese market, fot it caused such a shortage that- from the moment the delayed ships commenced to discharge buyers had been actively, competing, and', contrary to the general expectation a fortnight ago, prices advanced nearly ten shillings a cwt. Tn the past , week the strength of the market has been greatly assisted, by the United States purchasing large quantities of Canadian cheese, probably ns a speculation, for it is said that some of the American purchase may ultimately -he shipped here. It. is . unfortunate that there is no Australian cheese on the market to lienefit from (he enhanced values.