FINANCE AND TRADE

Hokitika Guardian, 18 August 1925, Page 1

FINANCE AND TRADE

FORTNIGHTLY LONDON REVIEW. STOCK EXCHANGE MORE ACTIVE. LONDON, August 15. Thanks to more favourable monetary conditions brought about by last week’s reduction in the bank rate, there lias been considerable business on the Stock Exchange, and the markets have shown activity which is quite unusual in the middle of Hie holiday season. Gilt-edgeds have hardened all round, colonials, notably recent issues, being particularly linn. There was much talk about a further reduction in the hank rate this week, and although this did not eventuate, prices held their ground remarkably well, the general impression being that the rate will be reduced to -I per cent before long. DOLLAR EXCHANGE UNAFFECTED. The lowering of the bank rate bad no material oll'eei on dollar exchange. Discussing this point, the “Spectator's" well-informed financial correspondent says that although foreign balances bore are supposed to lie fairly large, the lower bank rate up to the present lias not occasioned any serious weakening of sterling, while in the United States the movement is lutilod as an indication of the financial stability of Britain and has even tended to urest an upward movement in money rates which seemed about to begin. The “Spectator’s” correspondent adds that it looks as if one effect of the lower hank rate might tie to maintain easier monetary conditions in all the leading centres during the autumn tliajfi at: one time seemed possible. This should he helpful to trade all the world over. NEW FOOD REGULATIONS.

The Ministry of Health has published regulations regarding the prohibition of tlie use of preservatives in certain foodstuffs, making the date for operation regarding lmtter January 1. 102 S, in order to allow time “for the adjustment of methods and processes and the clearance of existing stocks.” Among the articles which may contain preservatives is fruit pulp, which is allowed to contain 1500 to 2000 parts per million of sulphur dioxide. Australian pulp importers regard this permission as unsatisfactory because Australian pulp is made from sound fruit. and shipped without preservaiives, while Continental pulps, especially those coming from Holland, consist largely of damaged fruits which could not he shipped without, preservation. It is said instances have occurred where foreign plums shipped here from Rotterdam arrived unsound. The sanitary authorities refused to admit the plums, which were re-sliipped to IRottordain, where they were pulped and preservative added, and sent back to London and admitted without question. That this matter is important for Australia is shown by the fact, that, out of an average importation of fruit pulp during the years of 1913 and 1922-23 inclusive, amounting to 7760 tons, the Australian average was 1200 tons. There are prospects of some activity in Australian canned fruits. An importing linn which recently bought 140,000 cases in Australia, is advertising them freely in grocery newspapers, stating that they are pears, peaches and apricots all of A 1 quality. The dried fruit market is firm for raisins and sultanas, and fair quantities are being sold at late rates. Stocks, however, are in somewhat heavy quantity. Sultanas on July 31 amounted to 5039 tons. This has caused fears in some quarters lest they may meet serious competition from Smyrna-, next month, hut according to the “Produce Markeis Review there i- a continuance of pessimistic reports from Smyrna regarding a diniiiniation of the tonnage of the new crop owing to one cause or another, so ii is thought more than probable that higher prices will lie inevitable in the near fr.itore. AUSTRALIAN AYTNKS. Australian wines have attracted much attention at Wembley. According to the “Wine Trade Review,” each of the respective types exhibited has shared in the demand, even those of the champagne type. Inquiries are constantly being received from visitors as to where they can repeat orders ill their own areas. Several applications have been received from London and provincial linns willing to take up agencies of Australian wine concerns not already represented here.