BRITISH TRADE

Hokitika Guardian, 8 October 1930, Page 2

BRITISH TRADE

FORTNIGHTLY REVIEW

GILT-EDGED MARKET VERY FIRM.

(United Press Association—By Electric Telegraph.—Copyright.)

LONDON, Oct. 4

The Government’s decision to issue 4 per cant treasury bondis with which to pay off £75,000,000 of the 4 per cent tax-compounded war loan, was very favourably received. The immediate effect was a /sharp advance in the prices of British funds and the gilt-edged . market was more active yesterday than for some time. The 5 pbr cent wa,r loan was marked at £lO4 16s 3d, the highest point on record.

Australian issued ail showed a marked recovery from the slough of despond into which they had sunk. This movement was partily attributable to hopes of good results from the Imperial Conference, while Mr Scullin’s reassuring utterances were also a contributory, factor.

Other departments of the Stock Exchange are still lifeless, though better- news from, Walt Street caused a somewhat firmer ’tendency. Jndus* trjala, mostly had been very flat owing to the depressed condition in the commodity markets, especially rubber, while mining had been overshadowed by the slump in prices. COMMODITY PRICES. It was mentioned later that if any evidence were required of the unfortunate position to which our trade has fallen it may he found in the “Economist” index, where a number of wholesale commodity prices are shown. At the end of September the figure stood at 73.2 compared with 91.8 on. September 1929. i Thus during! the past twelve months prices on the average, , have fallen nearly 19 per cent, or close upon 4s in the pound. The average, level of commodity prices now is only about 5 per cent higher than in 1913, and, excluding foodstuffs, the index figure for raw materials is. substantially below the prewar figure. METAL MARKET SLUMPS. All non-ferrous metal markets have had severe eet-backs during the past .fortnight. The values of several declined seriously. .Standard copper at £42 179 6d touched the lowest level since 1894 and tin, despite a decrease in visible supplies; fell to £123,17s 6d, the lowest since 1916. Zinc collapsed to £l4 10s, the lowest for over forty yearn and pig lead at £l6 8s 9d marked the lowest figure 1 since 1913. In each case the depression is attributable to great reduction in trade requirements ; with the consequent heavy accumulation of stocks, and also to the great increase in the production within the last few years.

FOODSTUFFS CHEAPER, Another group of articles which shows considernible decline is the food ppoducty? /wfhiol% Australia and New' Zealand export, notably cheese which is at about £OO per ton or £23 lower than a year ago. Eggs, too, have a very depressed market. Heavy Continental supplies are available with the result that Australians, although the quality is excellent, meet only a poor demand at about 14s per 120. Bacon is another very cheap food just now. Its price is down to prewar level consequently the British housewife can supply the breakfast table much more cheaply than she was able to do some years ago. New Zealand butter is obtainable at 18d and Australian at 17d. Danish streaky bacon is 15d and eggs are 2d each. The fall of wheat lias result, ed in a reduction in the price of jbread to 8d for the 41b loaf. On the other hand prices of all clothes have been maintained most unreasonably. The ifact of wool be* jng at a lower level is counter-balanc-ed by what the tailor and dressmakers describe vaguely as "overhead charges.” RABBIT SKINS. The Australian raWbit season opened none too well, for though arrivals are described ’as excellent in every way prices are below last year’s, best large realising 26s 6d case, and young 235. One reason for the lower price is the great slump in values. Skins, which last year made about 4d each are now only worth 3.)d. As large shipments of Australian are afloat there is little prospect of any improvement,