BRITISH TRADE.

Hokitika Guardian, 8 June 1927, Page 2

BRITISH TRADE.

FOTtTN K; HT L Y R E VIEIV. EASIER MONETARY CONDITIONS. LONDON, June 4. “Every day in every way the giltedged market becomes better and better,”' is how a writer in one of the financial newspapers describes the position. This is certainly tlie case with the Dominions’ stocks, the recent success of the New South Wales issue having had an excellent effect, and New South Wales and New Zealand’s lust loans are both quoted at one-half

per cent premium. The good position is largely attributable to the easier monetary conditions following on the payment this week of about i£50,000,000 interest on the 5 per cent war loan, and though the withdrawal of half a million in gold from the Bank of England yesterday had a somewhat disturbing influence, the markets closed with a confident tone. Prospects, therefore, seem favourable for the new Australian loans, for which it is understood preparations are being made. The Commonwealth. Queensland and Victoria are mentioned as likely borrowers, though the order in which they will come apparently is not yet- settled. The satisfactory absorption o recent issues may be regarded as ail indication that Australia is once again in the Stock Exchanges’ good books and that dominion stocks are becoming increasingly popular, especially those of the long-dated description., giving a yield of about 5 per

cent. OUTLOOK IN AVOOL TRADE. The position of the wool trade is summed up in the April-Mny bulletin of the AA'ool Textile Delegation as follows; “Direct imports recently have been heavy, especially from New Zealand, but machinery activity lias been fairly well maintained. The visible supplies of wool are extremely low, and with good clearances all the primary markets little pressure is expected from the supply side.” Quotations for tops are well maintained, in consequence of the wool position, and in spite of the poor demand from spinners and manufacturers, a slight improvement in business is now being reported in some sections. On the whole, wool prices, especially for fine grades, do not seem likely to suffer much reaction. DEMAND 1 FOR APPLES. Soft fruits are now arriving freely, and all markets are handling large quantities of French and Italian cherries and Spanish apricots, consequently the demand for apples shows some f-ing-off and prices have weakened slightly, hut the whole position is hy no means unsatisfactory, and the demand for keeping sorts like Stunners is a strong feature of the trade. There have lieen large sales to Germany, which continues to pay high prices, both for direct shipments a for apples transhipped from Britain. A member of one of the principal London importing firms, who recently visited Hamburg, says that- never in his long experience had he seen such a keen demand and spirited bidding for apples as lie saw there for Tasmanians by the Port Hunter, of which 30,000 cases were cleared at prices ranging from 11s to 20s. Large < titles of Australia and New Zealand apples are also going to Scandinavia. This strong Continental demand undoubtedly is responsible for t-7 nuiin ten a nee of prices here. GERAIAN RECOVERY: The position of affairs in Germany seems to bo steadily improving, notwithstanding tho collapses which recvently occurred on the Berlin and other Bourses. According to the latest report of tho Trade Research Institute quoted by the Berlin correspondent of the “Financial News.” tho slow, gradual progress which the institute reported for the three months, November. Decemlier and January, has during the subsequent quarter continued with accelerated tempo. The number of fully unemployed, which in January was 1,809.000, had fallen to 870.000 at the end of April, and 730,000 at the end of Alay, The report continues: “Production and turnover continuously increased during the last quarter. Especially prosperous industries are: Textile, chemical, electrical, technical, automobile, shipbuilding and machinery. The whole movement is due to an increased demand in tho internal market.” The report adds: “The extraordinary affair of Black Friday. May 13th. on the Bourse was entirely artificial and unnecessary. The situation was produced by the big hanks, which have been largely responsible for the inflation of prices of stocks hv the encouragement they have given customers to buy liberally, in placing credits at their disposal.