BRITISH TRADE.

Hokitika Guardian, 17 July 1928, Page 1

BRITISH TRADE.

FORTNIGHTLY REVIEW

STOCK EXCHANGE AFFECTED

(United Press Association.—By Electric Telegraph .—Copyright.)

LONDON, July 14

The Stock Exchange lias passed through a somewhat awkward period, not due to anything here, but to conditions abroad. The chief were the unfavourable money developments in New York, with an advance in the Federal Reserve Bank’s rediscount rate to 5 per cent., and forced liquidation in Paris and Brussels in connection with the Loewenstein catastrophe. Even the gilt-edged market has proved susceptible to these adverse influences, and, although leading stocks have only showed fractional declines, there seems little hope of an early improvement in them. In some quarters the fear is expressed that the rise in the Federal Reserve Bank rate will necessitate an increase in our Bank rate, hut a well-informed financial writer, says: “There is no need for anxiety. The Bank of England is in a stronger position than it over has been since the outbreak of war. Exchange is certainly moving against us, but it is still a long way from the point when it would be profitable to export gold to the United States, and it is evident that tlio situation, compared with a year ago, has altered very much in our favour, so it seems improbable that a rise in the Bank rate will he necessary. On the other hand, the- present rate is likely to become more effective and discounts in the open market should have a further advance.” DAIRY PRODUCE.

The butter market continues to harden, and the demand is improving. Many people in the trade are looking forward to higher prices, especially for choicest A 1 and first-grade qualities during the next few months, and there has been some speculative buying. One factor contributing to the firmness is the active buying on the Continent.

especially in Germany, so that supplies are being well absorbed. Cheese lias also a very firm market. Canadian prices are too high for our buyers, and, with New Zealand supplies on the short side and English also scarce, values seem likely to harden still further.

FRUIT TRADE. The Australian and New Zealand apple season is finishing satisfactorily, for though arrivals during the last week at various English ports aggregated 250,000 boxes, the demand has been so good that prices have been maintained. For this we have to thank the spell of hot weather we have had for a. fortnight, which has given an enormous stimulus to the consumption of fruit of all kinds, and although the market is well supplied with both Home-grown and Continental soft fruits, the demand for apples is sufficient to clear all arrivals. We have not had that end-of-senson slump in prices which often previously had been experienced. A feature of the apple trade this season has been the heavy sales at Hamburg, where seventeen steamers landed G 66.885 boxes from Western Australia., South Australia and Victoria. This is easily a record for Hamburg and importers are claiming that the Hamburg market is regaining its old position as one of the most, important centres for the distribution of Australian apples. They are carrying out an extensive “eat more fruit” propaganda campaign, and to this they attribute the success in selling such a large quantity of apples at prices which, they claim, average about two shillings per ease more than those realised in other markets.