BRITISH TRADE.

Hokitika Guardian, 28 April 1927, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEW. LONDON, April 23. The long and eagerly-hoped-for decrease in the bank rate has come at last, about a week earlier than the market anticipated. The reduction practicaly synchronised with the repayment of the Bank of France’s debt of £33,000,000 to the Bank of England, and this settlement of war debt about three and a-half years before it was due no doubt influenced the directors of the Bank of England in making their decision. The reduction had an immediate effect on the Stock Exchange. which had resumed after the Easter holidays in an excellent frame of mind, for it stimulated the optimistic spirit still further, and prices improved all round. Gilt-edged securities were naturally most affected, and colonials mostly participated in the improvement, notably the new West Australian loan which last week was quoted at nine-sixteenths discount, and lias now reached one-eighth premium. Industrialists have also been well supported. French rentes are showing much strength, as a result of the virtual stabilisation of the franc, as is shown by the fact that on the eve of the repayment of the £33,001).000 the Bank of Franco was able to lower its discount rate from live and a-half to five per cent. The Stock Exchange is now talking of a further reduction of the bank rate, and it is not improbable that mis will come during the summer.

According to the latest statistics, trade in Britain is steadily forging ahead, many branches of industry liecoming increasingly active. The .Ministry of Labour’s report on conditions in .March says that while employment remained bad in some important industries an improvement was recorded during the month in tailoring, pottery, earthenware manufacture, general and marine engineering, shipbuilding, public works construction, cotton industry, textile, bleaching and dyeing. There was a reduction in the numbers of those wholly unemployed in the coal mines, but ibis is more than offset by mi increase in the numbers of those temporarily unemployed. The apple market continues good, though, of course, with increasing supplies it has been impossible to maintain the very high prices obtained for the lirst New Zealand arrivals. The demand is satisfactory, much of the best West Australian and New Zealands being bought for the Continent, but Home buyers are supplying only their immediate wants, as they know large quantities are coining along, fn this connection some importers are questioning the wisdom of the action of the Empire Marketing Board in issuing statements to the newspapers about big supplies. This week the hoard circulated a- statement that 110.000 cases from Australia and 13.000 from New Zealand would lie arriving before the end of the month. Big buyers of fruit already have this information in their possession, but the smaller retailers liconip nervous when they read figures like these, and consumers point to these statements as reasons why the retail prices should he lower.

The Otranto brought the first parcel of the new season’s dried fruits. The condition of the currants was good, and they are selling between Ills and .V2s. The prospects are regarded as excellent, as supplies from other sources are very restricted.