BRITISH TRADE

Hokitika Guardian, 13 March 1929, Page 8

BRITISH TRADE

FORTNIGHTLY REVIEW. UNCERTAINTY IN .MONEY MARKET. LONDON, .March 9. Fears of :i furl her rise* in (.lie Bank rule are overshadowing the Stock Exchange and declining prices are the rule in almost every market, gilt-edg-eds being especially weak. The reason for the continued depression is the uncertainty of the position in the international money market and the weakness of American exchange, which to-day is indicating the possibility of the early resumption of the gold drain from England to New York. Enlesss there is an improvement on the American exchange before Tuesday it is feared that New York will secure gold arriving here from South Africa and also take some from the Rank of England. .In this event a rise in the Bank rate would probably be neccessary. The position is thus described in the ‘'Financial News” ; “It appears that whether or not the Federal Reserve Bank of Now York succeeds in curbing speculation the drain on funds for New York will continue for some time, so tjiene will he incessant pressure on sterling. In such circumstances it is understandable that the money market is uneasy and the possibility of a rise in the Bank rate is being freeli discussed. There is no doubt that the next month or two will he the most critical period in our history since the restoration of tno gold standard.” But although the. stock mancot is so weak there is no chock to the flood of new issues, which is flowing as strongly as ever and many new ventures of a decidedly speculative nature are being eagerly subscribed, speculators being ready to take risks, although. as one financial paper says, probably a large proportion of them have neither the desire nor the means to hold their allotments of new issues indefinitely. This week’s now flotations amount to CD,007,831. Despite the fact that there has been no Government and no municipal borrowing the total of new issues for 1929, including conversions, amounts to £91,002,9.10. DAIRY PRODUCE. The question of whether it is wiser to sell butter on e.i.f. terms, or to consign it appears to have been tlie subject of a discussion in Australia recently. The top price for Australian this season was 180 s realised at tlic end of December and the beginning of .January. At that time there were considerable quantities arriving which had been sold e.i.f at about 20s loss Now the hoot is on the other leg for the price here' is 170 s, and shipments are arriving which were bought on e.i.if. terms at 1795. Discussing the subject one of the leading importers said: “The question whether to sell e.i.f. or to consign lias been always and will bo one of the chief problems facing shippers. If anyone could accurately forecast the course of the market for a month or two, they would lie able to make a fortune, but tlm unexpected is always happening, upsetting anticipations. For instance eveiybody thought that' Austialian and New Zealand shipments would have fallen off 'considerably ere this, hut the contrary has happened, and those of us who bought e.i.f. are suffering in consequence. ■ But, taken over a number of season, losses and gains will probably be found to balance each other.” DEMAND FOR. HONEY.

Among tin* Austrnliiin and Nov Znalnml products which are steadily gaining ground in popularity here, is honey. Importers report increasing soles and a growing demand for New Zealand honey. The Government has done much to loster this trade and it is gratifying to learn that the rear’s imports from New Zealand are thrice as great as those o'l any previous year, with the result that agents have had to instal additional plant to cope with the trade. New Zealand now supplies one-third ol our imported honey.