BRITISH TRADE.

Hokitika Guardian, 12 May 1927, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEW. EFFECT OF REDUCE]) RANK , RATE. [Australian & X.Z. Cable Association.] LONDON, Alav 7. The reduction of the Bank rate a l. n iiigjiit ago has Intel a salutary cfi ol on the Stock Exchange. and m. I of the departments are active

si..'! iinn. Investment stocks espcci:iljy have 'foil. t';e benefit of cheaper money and advanced ail round. Aotv.'itlistandinjj; til. j1oo ( | ol now capital issues, amounting to out .L‘20,000,000 in ten days, most of which has been over-subscribed, Colonials have participated ill tllie general demand, and new scrips show marked firmness, Conunont\ e:: lt!i ~> per cent have ndvaneed to a three-eighths premium, and New Zealand to five-sixteenths. 'I here is now a pretty general belief that the lhtnk rate will he further reduced to 1 per

cent in the. near iiJturo. .Many people expected a reduction yds week, but were disappointed. Discount rates, how now pot so low that the present 4} per cent rate is ineffective .so that it is .surprising: that the money market confidently anticipated an early reduction. AVo aro still without information repanlinjx the New Mouth Wales conversion loan, hut inasmuch as JLJtj.OOO,OOO is repayable on .June !. and £">,r.'!iKJ on duly 1, the flotation cannot be delayed nmd'i louder WOOI. SALKS.

The wool sales are proceeding satisfactorily. Prices seem established at a basis of par to 5 per cent decline, compared with last sales, and most people in tho trade expect values Lo remain at about this level. According to a well-informed Bradford correspondent, the outstanding fact of the position is that the sales made no detrimental impression upon the Bradford market. London rates for raw material are still relatively dearer tlrau lale quotations lor tops. As there is no wool available, at prices which justify a decline in the quotations for tops these are (irmly maintained. Since the auctions opened there has been an improvement in bidding. A strong impression exists that the sale will close at the best point of the series. Not improbably the auctions will provide the incentive required to living about new business in tops which the volume of the current inquiry indicates is in ihp background. FKFIT KUiIYMENTS.

The apple trade continues good. Finest Australians and New Zealands are realising high prices, hut unfortunately a considerable proportion ol the fruit is not altogether satisfactory. Many Tasmanians arc only ot moderate quality, and somewhat over-ripe. Bitter-pit is much in evidence in AA cistern Australian as well as Tasmanian, especially Bihston an c [ Cox’s. I here is a good demand for the best apples from the Continent, and exceptional prices have been made at the Hamburg sales. Importers consider the prospects satisfactory lor tho trade in good apples till mid-.llily. as the cold, dry weather here and nil the Continent has been retarding suit limits, which usually conn* into competition with apples.