BRITISH TRADE.

Hokitika Guardian, 19 March 1924, Page 4

BRITISH TRADE.

fortnightly review. THE STOCK EXCHANGE. \UfIXEAIiIAN AND N.Z. CABLE ASSOCIATION. LONDON, March 15. The dominant factor on the Stock Exchange has been the course of French exchange, its fluctuations having had a disturbing effect on speculative markets, causing some sharp movements in prices and checking business generally. There was considerable uneasiness when the tranci went to 220 to the £, but no pressure to sell securities was manifest and when the reaction commenced the stock markets quickly recovered composure. The continued improvement in exchange has had a favourable effect on the tone, hut business remains quiet, operators maintaining a cautious attitude in view of the disturbed labour outlook, particularly the growing danger of a miners’ strike. RECOVERY OF THE FRANC.

The extraordinary .spectacular recovery of the franc has surprised everybody. for though financiers generally hod optimistic ideas regarding tho result of the French Government’s remedial measures, .such a rapid reaction was not anticipated. M. Poincare's success in the Senate has given a further stimulus to the recovery and the exchange to-day is under 1)0 fiancs to the £. The rout of the, hears seems to he complete. Mr Pierpont Morgan, interviewed in Paris, said that the movement once begun cannot be stopped. The Paris “Journal” states that francs bought since Monday by French banks which cannot he dilevcrod amount to 500.000,000. WOOL MARKET.

The opening of the colonial wool sales on Tuesday is awaited with unusual interest. Traders generally anticipate a strong demand for cross-breds at prices fully equal to those realised at the Liverpool sales, hut the position regarding meriuoes is somewhat uncertain. Early in the week it was thought that the slump in the franc would seriouijly affect French competition, but the franc’s rapid recovery has altered the position and it is now hoped that mcrinocs will at least maintain last London sale values.

The position in the wool industry is well described in tho journal of the Bradford Chamber of Commerce which says: “Topmakcrs will not take the risk of selling forward beyond the limits of the raw material they have already bought, in view of the obvious danger of inadequate supplies later in the year. The main considerations affecting their outlook may he summarised briefly: Reduced clip. The Australian clip sold so quickly ill a rising market that the selling season will be concluded! before the end of March. In New Zealand, 75 per cent of the clip has already been sold. In South America, practically the whole clip will have changed hands by the middle of March. In South Africa, the clip lias been disposed of with unusual rapidity, a large proportion having been bought direct by users in Europe and North America. In view ol the fact that the Inst bales of B.A.W.R.A. wool will be sold in May, comparatively light offerings are anticipated at the summer and autumn sales in London. In France, there are complaints of inadequate arrivals of cross-bred wool, and in Germany there is improving trade side by side with meagre supplies of raw material. Such lectors naturally gire to the raw material market a bullish tendency, and make topmakcrs, and spinners, also, very cantious about selling for delivery in later months of the year. It is difficult io estimate the extent to which the Home trade has improved but there has been more confidence in buying forward in yams and fully manufactured goods, with a clear preference for cheaper woollens. In some parts of the West Riding, notably in Huddersfield: and the Collie Valley, there has been more overtime and some night work. ’1 he distribution of new business is, however, very uneven, and there are many idle looms, with a good deal of short time in the worsted manufacturing branch. Mors ted spinners are better placed than worsted manufacturers, because of the expanding trade in yarns for the Continent.’’ THE METAL MARKETS. A wave of weakness passed over all metal markets this week, anti, though there has been some reaction at the close, values all round are lower. Tin w as within £2 of the £3Cj mark which optimists were saying it would reach, when heavy sales, partly due, it is said, to tlie forced closing of largo speculative accounts, brought the price down to £2BO, recovering later to £285. The liquidation of these weak accounts is not regrettable, and the whole position is healthier for the slnike-out especially as American, cables indicate that consumers there who have been quiet lately are likely to resume activities shortly. DAIRY PRODUCE. Tfie position on the butter market is an extraordinary one. described by a leading importer as never previously experienced in the history ol the trade. Danish is firm at 212 s per c-wt., while New Zealand is weak at 40s less. Tin difference in the intrinsic values of these butters is probably not more than 2s, and it seems incomprehensible that there should be this great difference in the selling price. The demand for Danish butter is limited, owing to its dearness, hut tho Danes are able to maintain a high price owing to extensive buying by Germany and other Continental countres, and the United States. Australian butter is from 10s

to 12s per cwt. below New Zealand, and quotations for it are largely nominal at 154 s to 160 s. The cause of the poor demand is quite understandable,

for supplies of Australian have been very light till recently, and with big quantities coming from now till the end* of the season it is only natural tlia tbuyers will not leave butter they have been using and take Australian, unless they can get it at sacrifice prices. Retailers have lowered their price for Now Zealand to Is 8d to Is lOd por lb, and it is hoped that the reduction will stimulate tho demand. So far, it has had littlo effect.