BRITISH TRADE

Hokitika Guardian, 26 February 1930, Page 3

BRITISH TRADE

FORTNIGHTLY REVIEW

AUSTRALIAN ECONOMIC CRISIS

United Press Association—By Electric > ' Telegraph.—Copyright.) LONDON, February 22.

Australia’s financial position lias been receiving much publicity in the newspapers, and the Federal Loan Council’s statement indicating a policy of root-and-branch economy, as one financial writer calls it, lias received a very “good Press.’ For instance, the “Daily Telegraph” says: “The council’s decision may have been inevitable but credit must be given to those in power for facing the position resolutely. If Australia does not swerve from its declared sinking fund policy it will not lie long before definite benefit is seen in the higher prices of existing stocks!”

The “Statist,” with its usual caution, says: “While the statement is decidedly reassuring, much must depend on the duration and -severityof the economic crisis in Australia.” The “Morning Post” says: “Movements of the Australian exchange begining this week once again tend to indicate thp*.strained position through which. Australia is passing. Nevertheless, it will lie noted that, after the first sharp decline, Australian loans are now keeping comparatively steady and that, while the serious character of the economic crisis in Australia is fully recognised, anxiety has been lessened to some extent by the evidence afforded of adequate recognition of the position by those in authority in Atisbralia. The fact that £7,000,000 of gold are now on the way from Australia is an indication that the authorities perceive, not merely the necessity for the maintenance of loan obligations, but for do : ng everything possible to relieve the .strain on exchange.

STOCK EXCHANGE BILL

The Stock Exchange is in a state of dullness, and hesitancy. .Not even the .satisfactory Hatry group settlement which passed o.T without any casualties, the strong bank return and favourable monetary conditions have proved sufficient to overcome the prevalent .dullness. The most disap-pointing-section of the* I 'market is industrials, but gilt-edgeds have also been depressed and English railways failed to respond to tlie announcemen' of satisfactory dividends. Apparently much of the depression is due to apprehensions regarding the Budget, and .it seem likelv that dull conditions w 1" .I'l’m till Mr Snowden makes his announcement mi April 14.

WHEAT POSITION

The wheat position is a difficult one. There are all sorts of rumours current on both sides of the Atlantic about lieat’y purchases of Mamtoba wheat for shipment to England in the spring, but not one .can confirm them. If correct, these spies may be taken as an ■ndiention that the Canadian Wheat Pool has changed its policy of holding up wheat. It is suggested that this may presage the “end of the greatest nold : n" since Joseph,” as, !a leading who jit trader described it in the “Daily Telegraph.” lie proceeded: “There is oo one conversant with grain market olio will hazard an opinion regarding the future. The situation is too artificial. It is unique, and therefore, no sort of precedent counts. What on- 1 can be predicted to an operation which has been going on for two years? Some grain stocks in North America have been there since August 1928. All ’bat time carrying charges have been ‘’'■cumulating and are now estimated about 12s per ouarter, or 30 per ceid •»f the present price.

DAIRY PRODUCE

The tendency in the butter market is still downward, and there are prosects of a further decline ns imports are much in excess of trade requirements, and a lowering of the retail price has failed to stimulate the consumptive demand. imports from all European countries have increased Those from Australia and New Zealand have been considerably heavier than a month ago, while large quantities are advised as leaving Australia and New Zealand in February, and the bookings for March indicate that we shall have more than ample supplies for some month's. Tn this state of affairs buyers are naturally only operating on a hand to mouth basis.

A FRENCH INVITATION

■The French Ministry of Agriculture announces an invention by Messieurs liruere of Worms, as likely to prove of enormous I>enefit to the whole textile trade. It is a colourless dye which the inventors claim, is fatal to moths and their larvae while it does not admage the cloth. It consists of a metallic salt solution, previously submitted to the action of sodium nitrate.