BRITISH TRADE.

Hokitika Guardian, 26 February 1929, Page 8

BRITISH TRADE.

FORTNI.GJITLY REVIEW. JiIFFECTS OF HIGHER BANK RATE. LONDON, Fob. 23. The Stock Exchange is gradually recovering rrom the shock following the increase in tile Bank rate, and clearer money. So far, however, the improvement has been practically confined to gilt-edged securities, though rubbers nave been fairly active, and even strong, as a result of the price of the raw commodity passing .tne shilling level. The lower prices to which giltedgeds fell had the effect of producing a fair amount of investment buying, and, as monetary conditions appear to ho taking a mpre favourable turn, there is hope that the improvement will he maintained. Australia’s recent loan, which fell to discount, has recovered, the present quotation being about one-sixteenth premium.

FRUIT TRADE. Although the quantity of apples coming to the United Kingdom from Australia and New Zealand this season is estimated at only about 1,650,000 boxes, compared with 4,150,000 in 1020, importers do not anticipate that early arrivals will make high prices. Supplies from Canada and the United States have been very heavy, and there is a prospect that they will he maintained on a large scale for at least another six weeks. Consequently, the first Australian and New Zealand cargoes will meet severe competition, for the quality of the American apples now being marketed is excellent, and the hard varieties, like Newtons, are keeping well. These heavy supplies are, naturally, having an effect on prices, and apples to-day are decidedly cheap. Oregon Newtons are fetching 12s to 13s per box wholesale, and Winesaps a,bout a shilling less. Many shopkeepers are retailing excellent apples at fourponce per pound, and there are plenty obtainable at threepence, consequently importers are not hopeful about the opening prices for Australian and New Zealand, except for finest varieties. The fact that large quantities of apples are being shipped direct to Scandinavia, Holland and Germany is also regarded as likely to have some effect on prices here, as Continental buyers will not purchase so much in London as hitherto. DAIRY PRODUCE. News from Australia that good rains have increased butter production, and prolonged the export season, had 1 lit natural effect of depressing the market. Victorian and Queensland butters are freely offered for shipment up to the last week in March, and retailers are, therefore, adopting a .•aufcious attitude. Many still have plentiful supplies of butter, bought a month or so ago when Australian supplies seemed unlikely to be available much longer, at several shillings above present values, consequently they are holding off the market. Fortunately, the consumption remains good and traders generally think quotations likely to remain at about the present level.

TRADE OUTLOOK. Tlii; “Economist,” in its monthly trade report, strikes a note of subdued optimism. “To judge from current statistics and reports,” it says, “the 'new year opened well. The overseas trade return is good, and machinery exports, in particular, have achieved since the war a January record. There has been a distinct improvement in the production of steel, and some increase in the activity of the iron trade. The engineering outlook is more promising and shipbuilding has maintained its new vitality. Finally the coal trade, helped in part by the winter weather, is at least able to report comparative activity. The weak spot is the textile trades. Bradford reports a renewed fall in ' raw wool orices, restricting production, and while conditions cannot be said to be said to be wholly unsatisfactory. The demand for piece goods has been rostriced by the Bombay riots and Chinese new year holidays, and the decision of spinners of Egyptian cotton to introduce short-time bears an ominous appearance. The general situation seems to be that, as in previous years, a spell of comparatively good trade is (being experienced, which should last till April. Moreover, the current quarter, in some respects is proving a more active period than the first quarter of last year.”