BRITISH TRADE

Hokitika Guardian, 26 March 1930, Page 8

BRITISH TRADE

FORTNIG I!TLY REVIEW

REDUCTION IN BANK BATE

LONDON, March 22

The reduction of the bank rate to ;jA j,er cent, and the opinon confidentiv expressed in many quarters that it will tie still further reduced to 3 per cent next month, lias had a marvellous effect on the Stock Exchange, especially oh the gilt-edged market, which during the last few days has shown activity reminiscent of the boom days ol the past, hollowing the sustained upward movement of British funds, which commenced on Monday, there were sharp advances all round yesterday. Compared with a week ago, 4 per cent

Consols showed an advance of 2£ per cent, conversion loan per cent, an advance of 3* per cent, and Victory Bonds an advance of 3-J- per cent. Indian «‘H per cent, which had been very weak owing to the political troubles, improved no less than per cent. Commenting on the position the inancial News” says: “To some extent la* market is professional, and profit taking may cause a reaction, but it is ,m acknowledged 4act that the big finance houses and insurance houses are buying. A notable part in the general advance lias been played by Australian stocks, and - Indian stocks. This is partly clue, in both I cases, to, the facts that the stocks bad | previously lagged behind the general body of gilt-edgeds, but it has also reflected the real revival of confidence in the stability of the borrowers, stimulated, in the Australian case, by llio determined efforts which the Labour Government is making to riglil the exchange situation, and, in the Indian, but the petering out of the Gandhi campaign.” Another financial expert writes: “No doubt a good deal of professional speculative buying lias taken place. In some respects it is regrettable, though perhaps, inevitable that the professional operator should get ahead of the genuine investor. The question which the investor is asking is whether the rise is likely to go further, and money is likely to remain cheap for a prolonged period. T can only say, that for the moment the indications favour a likelihood of low money rates continuing Ifor some months.” Other writers express similar views, some even mentioning the possibility nf n 2J per cent bank rate in the near future. WOOL. Describing the wool position, a Bradford correspondent writes: “At the opening of the London sales greasy merino wool was no more than 5 per cent, cheaper. This means that there is more buying power and more definite requirements to fill than lias been previously acknowledged. The opening of the sale and the steadiness' which has since been maintained has exerted a very beneficial effect here, low quotations for fine tops having been withdrawn. There are now no sellers of average sixty-fours at less than 26d, and,at the moment, there is some ini dication that more business is to be done. The sharp decline in eross-breds leaves the market there still rather weak, particularly as values have con- ] tinued to fall in New Zealand. All the ' influences recently operating in the j cross-bred market have been towards depression. Under these circumstances ; and in view of the poor state of the Continetnal trade, no marked recovery- in tops seems likely.” FRUIT. The Australian and New Zealand apple season opened with the arrival yesterday of the Tainui, with eightyfive hundred cases from New Zealand, j Importers are not optimistic regarding the market, for supplies of American and Canadian, though less than last year’s, are exceptionally heavy. Quantities are still very large, the arrivals for March being estimated at over eleven hundred thousand cases. The Americans are likely to arrive in large quantities 'for several weeks to come, •so that apples from the Southern Hemisnhero will have to face keen competition especially as the Americans are in excellent condition. Prices are comparatively cheap, host Oregan Newtons making 16s fid per ease. i DAIRY PRODUCE. I I The butter position shows no improvement, for though the quantities

afloat from Australia and New Zealand are less than was the case a year ago. there are considerable stocks in cold store, according to, the latest particulars issued by the Empire Marketing Board, which are estimated to cc\cr 90 per cent, of all the butter in cold storage in Britain. ‘ The quantity stored on March 8 amounted to 601,286 boxes. Despite the reduction in the retailers’ counter prices to 18d per pound consumption shows no expansion, and the demand by retailers is hand .to mouth,, as, in the. present position of the market, no one shows a disposition to buy more than i.s necessary for immediate req ui re men ts.