BRITISH TRADE

Hokitika Guardian, 19 December 1928, Page 2

BRITISH TRADE

FORTNIGHTLY REVIEW. AUSTRALIAN BORROWING DISCUSSED. (United Press Association By Electric Telegraph—Copy rigid). LONDON. Dec. IA. Stagnation has reigned on tin- Stool-. Exch: nge since the beginning ot the month. Anxielv abnui the King health has been one o. the e ieS causes, while the approach “I the Christ mas holidays, and the slum)) or Wall Street also rontrihuied to make things quiet. But while business hit 1 been restricted, gilt-edged stocks hav« remained steady, which is a matter lor congratulation, as there has been such a considerable deflex ol gold Irnm the Bank of England that there lias been talk of a possible increase in tin* Bank rate, not this year, hut early in 1929. when it may lie difficult to keep the rate at. its present level. In a long article headed: "’I lie New Position of Australian Loans.’’ the “Economist” discusses the effects of the Federal Government taking over the States’ debts. After expressing approval of financial reforms carried out under Afr Bruce, especially in tarnishing ■ information in prospectuses and provision for sinking funds, the writer proceeds to says:—-“‘I he all-important question that remains is: Is Australia over-borrowing lie points out that (17 per cent of the net Australian debt is raised for purposes directly or indirectly productive, and arrives at the conclusion that the test ot the .soundness of Australian borrowing is whether the money is being spent productively and economically. 'I he writer concludes:—“l lie London market will take a more cheer!ul view of Australian securities when assured that reckless borrowing has given place* tf) wise and carefully supervised borrowing. There are signs ol restricted spending on the part both ol Governments and individuals. While the exceptionally good rainlall in October lias changed the seasonal outlook for primary production, now is tin* time, wo suggest, for the Comnumwenltli and States to budget for. surpluses, not deficits, and to apply those surpluses to accelerate repayment ol Clio debt.

DAIRY PRODUCE. The butter market lias shown great strength this week. Prices lor all descriptions have advanced, and the rise is a genuine one. brought about by a real shortage. For some time past the retailers have been working on very small stocks, and they appear suddenly to have awakened to the fact that prospective supplies are much smaller than they thought. There also is a great shortage on the Continent and considerable quantities of colonial are being bought on this market by Germany. Belgium, Holland. France. Italy and Switzerland. This demand appears likely to continue and the prospects for the next month or so appear decidedly favourable the year finishing with the whole trade feeling fairly comlortahle.

WOOL TRADE. Regarding the standard ol woo! values, a correspondent of “I be Statist” says‘‘There is far more faith to-day in current values than last March, when juices were distinctly higher and when a good deal 01, forcing tactics bad been employed. To-day this feature is entirely absent, but all sections of tho industry are satisfied that current values are high enough to be safe. Higher values will do more harm than good. It looks as if we arc going to see steady values with consumption maintained, tending to improve.”

FRUIT MARKETS. In their annual review of the Australian and New Zealand fruit season. F. W. Moore and Company call attention to the fact that New Zealand since June enjoyed the advantage ol a favoured-nation treaty with the German Government. Several other nations have a similar arrangement, whereby they have to pay only seven Reichmarks import duty (roughly seven shillings a hundred kilograms, instead of the fifteen shillings which is charged on Australian fruit. This, of course, only applies to fruit bought lor consumjrtion in Germany, but Germany with a po|)ulation of 60.000.066 has a large number of potential buyers, who hesitate to compete for apples oil which the duty is roughly '2s 9d a ease, and concentrate their attention on apples which, under a favourednation treaty, pay about eiglitjience a ease lower duty. Commenting on this position, Moore's write :—‘ -, l he Australian fuitgrower needs to stir up the Commonwealth Government to follow New Zealand’s example. The Ministry of Markets in Australia should attend to this without delay.”