WELLINGTON NOTES.

Hokitika Guardian, 12 May 1924, Page 1

WELLINGTON NOTES.

FIVE MILLION LOAN. (Special to “Guardian”.) WELLINGTON, May 9. There is no doubt alxiut the success of the New Zealand loan for five millions sterling issued in London during the week, for according to advices received by the Prime Minister tho amount tendered was nearly twenty millions or nearly four times the amount required. The issue was a popular one from tho outset and it "as boomed by some of the Loudon dailies, hence it is probable that the subscriptions were swollen by llie tenders of “stags.” “.Stag” is a stock exchange term for financiers who gamble on new issues. They do not intend holding their allotments, but sell immediately a premium is offered. W ith pupulni issues tliere is often a premium offered by disappointed tenderers, immediately the allotments are known, and the stags- turn over their allotments at the premium and come out with a profit. The New Zealand loan is the cheapest and perhaps the most successful of colonial loan issues on the London market this year. The Queensland loan was over-subscribed five fold, but the interest rate was one per cent, more than was offered by New Zealand. The issue may go to a slight premium, say one-sixteenth per cent, or Is .Id advance on the minimum price. The great reception that the issue has had shows that the credit of New Zealand stands very high on tho London market.

REASON FOR SLUMP IN LAMB. Those interested here in the meat trade are rather amused at the explanation given by the Meat Board s London representative for the recent fall in the price of lamb. In bis letter to the Hoard he says: “On the cessation of the strike (dock) the hold-up shipments of chilled beef simply Hooded the market at Smithtield and prices for beef slumped very badly. Most of the retailers laid in heavy stocks of chilled beef, upon which they are making line profits, and no doubt pushing the beef aga.inst the lamb.” It is reireshing to learn that retailers are able to hold stocks "f chilled heel. According to Messrs NY. NYcddol and Co. chilled beef arrives in England in a soft condition readv for immediate consumption, while frozen meat arrives perfectly hard, requiring to be thawed out hel’ore it can be used. Chilled beef is ol a highly perishable nature, and Messrs NY. NYeddel and Co. stale that last year it frequently became necessary to force the sale of chilled beef at extremely low rates oil account of its highly perishable nature. The Argentine chilled beef trade is dominating the Sniitliliold market, because it is good and cheap. The Board of Trade index figure for chilled beef last year was 122, while frozen lamb was li ■ and frozen mutton 173. Another factor causing the fall in lamb prices is the enormous quantity of second grade lamb going on the market, and in the opinion of some authorities there is far too much going from New Zealand.

ARGENTINE COMPETITION. It seems that this country is destined to feel the effects of Argentine competition in other markets besides the meat market. NVe stand absolutely superior to the Republic in respect to frozen lamb, hut it is doubtful whether we can claim much of an advantage in respect to mutton. It "id he necessary for our dairy farmers to keep a watchful cnc on Argentine dairying. In 1921 the Argentine exported 513.-129 cases of butter, in 1922. tho export" dropped to 782.G-I3 cases, hut lust year there was an increase to 1,23(1,.‘2-> cases. The British Board of Trade returns for .Itiminry ami February this year show that tbe imports of butter from the Argentine totalled F 11,220 cwt. as compared with ILL 111 <wt in tho corresponding two months ol 192. L and 99,898 cwt. in the two months of 1922. Dairy produce lias been selling at remarkable high prices during the past three or four years and this is causing supplies to gravitate towards England. BETTER PRICKS I.ONNT.II.

Movements in the prices of dairy produce are closely followed, not only by those directly interested in the trade, but by business men generally, who realise the importance of tho industry to New Zealand. On April Htli. the price of New Zealand salted butter was Id2s. Germany then clime into the market, and bought up large quantities of Danish butter, which was immediately followed by speculative buying in Loudon, at a time when very considerable quantities of New Zealand butter were being withheld from the market. These operations sent prices .soaring and hv May 2nd. New Zealand salted butter was up to 171?, a rise of 22s in three weeks which was rather a rapid advance, and too artificial to be maintained. The demand immediately weakened, and "ith supplies accumulating a break in prices was inevitable. Latest cable advice show that New Zealand salted butter is down to 108 s. a fall of os. and this backward movement may be accelerated by holders throwing their stocks on the market before prices go lower. It remains to lie seen to what new low level prices will tall, and whether the recent gain of 22s will be lost. There is still a considerable quantity of New Zealand and Australian butter to lie cleared, and if supplies from the Northern Hemisphere are largo prices must yield to the pressure of augmented supplier.