BRITISH TRADE

Hokitika Guardian, 18 December 1929, Page 3

BRITISH TRADE

FORNIdTH LY REVIEW. LOWER BANK RATE MAS LITTLE EFFECT. United Press Association- By Electric To'egrapli -Copyright). LONDON, December 14. The reduction of the Bank rate was welcome, though it. so far has had Fttle effect on Stock Exchange prices, except in gilt-edgeds, which have developed in strength. Industrials, especially those of a. speculative nature ■ire still under the cloud of .numerous adverse influences rfiotahly the losses >f the Home group, the Royal Mail Steam Packet Company’s passing dividends and the fresh disclosures regarding the Ha try case. All these unpleasant incidents, coming at the same time, have outweighed the possibilities of cheaper money, which the reduction of the Bank rate foreshadows.

The “Statist” thus describes the situation. “The brokers, no less than the public, appear to have lost confidence in themselves and are as reluctant to give an opinion as their clients are to accept it. Meanwhile the banks remain very reluctant to grant now loans on Stock Exchange collateral, however good the security, this attitude contrasting strangely with the amazing trustfulness with which they, in company with the finance houses and important brokers, made advances to the Hatry group during the boom.” Tii these circumstances the news that the Stock Exchange will he closed on December 27 is welcomed and it is hoped that things will improve after the long holiday. The monetary position has a more cheerful aspect. The Bank, of Eng land yesterday received another 1,000,000, sovereigns from Australia, this being the third of four such shipments by the Commonwealth Bank. Other largo shipments of gold are near at hand including £4,000,000 from New York, and before the end of the year it is expected that the bank will have received a further £6,00,00. Thus the bank’s stocks of gold will he substantially replenished and should total about £142,000,000 before Christmas. There is some uneasiness about tlie possibility of demands for gold by Germany as well as tho renewal of the drain for France, but at present neither country’s exchanges permit of purchases.

TIN PRICES. A feature of the metal markets has been the spectacular recovery of tho price of tin, which advanced £l3 during the week. The cause of this satisfactory movement is apparently that the market lias been receiving support from new quarters and that it is believed that the first definite step has been taken to give effect to the policy of the Tin Producers’ Association. The news has been received from Ala lay a, that mining interests there have practically agreed on a co-operative arrangement for the restriction of the output. It is expected that the Tin Producers’ Association will shortly make an important statement regarding the position. BUTTER MARKET DULL. The butter market h"s fallen into a state of extreme dullness, with prices lower all round. There lias practically been no Christmas demand worth talking about, and even lower prices have not tempted buyers. According to the report of one of the large importing firms, unknown stocks here have to a great extent been responsible for upsetting the calculations of the importers, who had regarded the statistical ■•osition as sound. Several of the larger operators have apparently had

considerably greater prospective stocks than was generally imagined, and these, together with their forward purchases of the new season’s butter, which now is beginning to arrive, have to a large extent made them independent of the spot market. Another factor has been the arrival of the new season’s butters. Some holders have shown anxiety to clear stocks o*f last season’s goods, but buyers anticipating ample supplies of the new season’s in the near future will only operate sparingly in stored stocks. There is also the fact of the general condition of the trade of the country, which leaves much to bo desired. Undoubtedly the nation’s spending power is more or less restricted.