BRITISH TRADE.

Hokitika Guardian, 16 April 1924, Page 4

BRITISH TRADE.

fortnightly review*

THE STOCK EXCHANGE

LONDON, April 12,

An otitstandihg feature of the Stock Exchange is the strength of gilt-edged stock. There was a good reception for the Government’s AVnr Loan Conversion Scheme, which, it is believed proved very successful ilnd lias apparently more than counter-balanced the adverse effects of General Shiuts’s resignation, and British political difficulties and feiirs that ‘serious labour troubles may arise from the shipbuilding lock-out.

Investment stocks generally are firm an I Colonials* have improved all round, several of them showing substantial advances. 11l some cases the advam-s are as much as £2 over the quotations ruling a fortnight ago. Ibis is most xatifactory, considering the recent heavy issues and the fact that other large loans arc expected after Easter. FOREIGN EXCHANGES. The foreign exchange market has been quiet, with both Belgian and French currencies moving in the right direction, and Italian keeping steady. As the “Investors’ Chronicle” remarks: “There was bound to be criticism, especially from France, of the proposals which uphold in quite a striking degree the views, which have been expressed iii financial quartets for tile past year or two, but there is a strong undercurrent of optimism, that by means of this report a way out of tiie Emopean financial chaos and misunderstanding will be found. BANK EXCHANGE R ATES.

The difficulty of transferring money to Australia continues to be a cause of much inconvenience and considerable com inert in the city. The rate fixed by Australian banks for telegraphic transfers remains at 40s per cent, hut merchants, who are not rcgulai customers of Australian banks, are pacing up to 60s per cent for transfers. It is regarded as an extraordinary position that firms should hare to pay £lO3 in order to send £IOO to Australia, whi -'ll is a debtor country, and surprise i: freely expressed that arrangements for financing Australia s exports should not be possible at a reasonable cost. City circles consider that the position is largely due to the Australian Government’s borrowing in

London and their Exchange requirements ccnsequent thereon, couplet with the fact that the currency of

Australia is lion-resilient to a large measure. Approval is expressed towards tilt remedy proposed by bankers, both here and in Australia, which was emphasised by Air C. E. Barnett, chairman of the Bank ol Australasia, at a recent meeting. Ho suggested that during the Australian export season lasting six months, the hanks should be granted temporary currency facilities which could be repaid during the remainder of tile year. DAIRY PRODUCE.

The outlook in the Australian and New Zealand butter trade is not hopeful, Importers fire becoming decidedly pesiniistic regarding the course of the market. Retailers have reduced their prices' and excellent colonial butter is obtainable at Is 4d to Is fid a pound, hut so far there has been little expansion in consumption. As nearly 380,0f)0 pounds of New Zealand and 153,000 pounds oF Australian are to arrive between now and May 31st., traders see litt'o prospects of any recovery in price, especially as, despite our wintry spring, the Home make will s’Oon he increasing.

The Fu-ncli Government has forbidden'the export of butter till .June, but this lias not affected our market, as we get litile thence nowadays. APPLES. The Australian apple season opened disappointingly, and the prices so far realised cannot he regarded as .satisfactory. This is mainly duo to a large proporth nof the fruit, both West Austi-.ibr.il and Victorian, being below the high standard of quality usually associated with apples from those states. A large proportion of the Victorian apples are immature and what ought to have been fine parcels of “West. Australian Cleopntras and Cox’s are maireu by bitter pit. Owing to these faults, Australians have come into competition with American apples, and pries suffered accordingly. American shipments are now dwindling, and if tho condition of Australian arrivals improve, they should meet a good market. EMPIRE TRADE PROSPECTS. Regarding prospects of trade impiovcninn, ii writer in “Barclay’s Bank Review” finds enouraging factors in the improved conditions of many overseas countries. Til the volume of external trade Tndia P'approximately equal to the pre-war level. Recent reports from New Zealand and Australia also indicate more prosperous conditions. Canada has had an unusually large harvest and both imports and exports for 1923 were much higef than in 1922. In South Africa, the improvement in economic conditions is well maintained, while the external trade for 1923 shows a distinct expansion. Business in the United States is still active, while more stable conditions are reported in a number of South American countries. Even in Europe the position in many countries is improved. The success of the 1-ea-guo of National Currency scheme in Austria, the definite prospect of application to Hungary of a similar arrangement and the financial reorganisation now being undertaken by Poland and Portugal are a few instances of the desire to restore normal conditions. Italy lias made great progress in reconstruction efforts, while in Scandinavia also, particularly in /Sweden, considerable headway lias been made towards recovery from the effects of the collapse of the post Armistice boom.