MONEY AND TRADE

Hokitika Guardian, 12 April 1930, Page 6

MONEY AND TRADE

REVIEW OF LONDON CONDITIONS.

THE FINANCIAL POSITION

LONDON, April 6

Those optimists who anticipate the early reduction ofi the bank rate to 3 per cent.—some even expected it last Thursday—have been disappointed, for yesterday there was a sharp advance of 8s per cent, in the rate at which Treasury bills are allotted, and consequently tile monetary outlook is regarded with less confidence. The immediate result was a decline in giltedged securities, which bad pre\ iously been showing an easier tendency under the combined influences of the apnroacliiiig Easter holidays and nervousness regarding the Budget. The knowledge that the Chancellor of the Exchequer will have to meet a deficit of considerably over £40,000,000 is naturally • causing anxiety. Another cause of weakness in fcilt-edgeds has been profit-taking by speculators who bought at the commencement of the upward movement. In this positio it is satisfactory that Australian stocks maintain their position, and have been only slightly affected by the recent unfavourable financial developments; but while gilt-edgeds have been unsatisfactory, there lias been a fair amount ‘of activity in industrials, which is to sown extent tlie reflection of the revival in AAhill street, where there has been-a consul rahle increase in speculation. Acaccording to “Statist” it is estimated that AVall Street stocks, on an average have recovered fully 50 per cent, of the depreciation which occurred in November, but whether prices will continue, to advance seems doubtful, in view of the weakness in the technical position, and the general depression in trade. At the moment the tendency in New York is very irregular, though business continues exceptionally heavy. ’IMPROVEMENT IN WOOL MARKET The London wool sales are proceeding satisfactorily, and when they close on Wednesday it is probable that many descriptions will show an advance o’f 5 per cent, over opening ratets. Com menting on the .position, a BracTrom correspondent writes: — “A marked change has come over the market in the present week. The improved demand for tops, especially finer qualities, has been maintained niid ail advance in prices has been made. The hardening of values, which commenced when the Australian growers agreed with the buyers on a, selling programme for the remainder of this season, has continued because of the confidence created. Not only have our own importers bought more freely, but it is reported that speculators unconnected with the wool trade have joined in the bidding at sales, having apparently decided that wool at the present price is a good investment. Bidding at the London. sales also has become more active i nthe general sense ;there fore wool to-day occupies a much better position than a fortnight ago.’”

ACREAGE OF SUGAR BEET. An increase of the acreage under sugar beet in Europe is predicted by Dr. Miknsch the international expert, who says even if the Soviet’s anticinated 40 per cent, increase in sowings is not included, somewhat larger sowings will be made throughout Europe than last year. Price negotiations continue in Czechoslovakia, but it is generally believed that tlie sowings will Increase there. In the United Kingdom, Austria, and the Soviet Union fhe area has been increased, while an increase is expected in France. The •ncrease in Latavia will be from 4200 to 3280 acres. No material change is expected in Belgium, Holland, or the Balkan States, but Polish and Hungarian planters favour an increas" Mowrh the factories want a restriction, and in Italy the growers have agreed to plant 272,000 acres instead of 282.130, as last vear.

ATr F. O. Light, the AFadgebury expert, estimates tlie European beet sowings, including Russia ,at 2,970,000 acres, compared with 2,650,000 last year.

CAMPAIGN AG VTNST BLENDED BUTTER.

' The campaign against the sale of Mended blitter in wrappers not indicating tbe source of origin is bein'" vigorously carried on, and its organisers’ activities are receiving much Press publicity. Meantime, tbe opinions of retail trades on tbe subject seem divided. For instance, tbe president of tbe Birmingham and Midland Counties Grocers’ Association, addressing that body, said tbe promoters of the Collided Butter Bill might not be aware of the possible injury that would be done to British butter if the Bill became law. The practice of blending butter has made butter more palatable and saleable, and had led to more British butter being sold. On the other hand, a director of an important London grocery store, writing in a trade paper, says it is clear that public opinion is solidly against the continued use of wrappers conveying the impression that th n blended butter is English butter, and be suggests that in their own interest the local grocers’ associations should definitely range themselves on the side of the public.