BRITISH TRADE

Hokitika Guardian, 25 February 1931, Page 2

BRITISH TRADE

FORTNIGHTLY REVIEW. STOCK EXCHANGE PRICES DEPRESSED. LONDON, February 21. The Stock Exchange has passed through a very uncomfortable week. Both investment and industrial stocks endeyldsouaboaw tEa.daefffiihE Be have undergone serious depreciation. All markets have been in a nervous condition following Mr Snowden’s and Mr Lloyd George’s speeches, the Chancellor’s announcement being regarded as an indication of his intention to impose additional taxation on unearned incomes. This has brought aoout Heavy selling of gilt-edgeds, with a consequen fall in values. As the “Statist” remarks “The markets have fallen a victim to Budget fears while the Labour Government’s belated admission that a national crisis exists has been •osLoalatai merely to make matters worse, in absence of any definite proposal to deal with the situation.” AUSTRALIAN ISSUES. ' With such conditions prevailing it is' natural that Australian • stocks should be further marked down. They mostly became lower daily until yester day when the announcement that maturing Treasury Bills would be repaid had an immediate and salutary, effect. Several Commonwealth and State stock hardened as a result, it is believed, of speculative buying by professional op* perators. Such purchases are not surprising when it 1b recalled that at recent prices some of these stocks give enormous returns. New South Wales 5 per cents., redeemable in 1982, form erly purchaseable at a rate to give a return of £7 7s per cent now return 23£ per cent., assuming repayment at 100 in 1932. Several others yield over 10 per cent. EXCHANGE RATES. Tlie Australian exchange position at last begins to show slight signs of improvement. Some people are talking about the possibility of an early reduction in the rates. It may be that the wish is father to the thought, but it is wis hi £stafehr6 Trthe e 8 pmlU aes a fact that the outside market and the banks here are now charging the same rates, and it is reported that business has been transacted in Australia at rates lower than those quoted by the Associated Banks. The repayment of Treasury Bills is also regarded to indicate an easier exchange position. METAL MARKET. A more optimistic feeling prevails in the tin market. Prices advanced by nearly £7 per ton during the week, owing to expectation of the announcement made yesterday of ’to Government’s approval of -the tin Testriotibn proposal. This caused much, activity in the market, yesterday’s turnover, being nearly IQGQ tons,. According t° the “Morning Post” the reduction contemplated amounts to 29,3 per pent of. the output and exports of the participant countries in 1929, That, it is estimated, will reduce production for the current year by between 145,000 and 150,00-0 tons, or rather less than was anticipated. Consumption is so in excess that stocks shouia gradually diminish. ■ ’

DAIRY PRODUCE. Butter consumption recently has been oii a large scale and though the demand eased a little towards the end of the week it has been sufficient to clear heavy arrivals. Nearly all the Continental countries are notv on the lowest production, consequently the demand from them has been maintained and considerable quantities, especially of unsalted ,have shipped from this country. The weather, however is comparatively warm and it will not be long before Continental production increases materially, so that importers do not expect the present demand to continue much longer. Consumption in Britain appears to be increasing, 'lne Empire Marketing Board’s efforts to popularise Empire butters in the north of England are meeting with con siderable success. A number of large London stores are pushing it. Unfortunately some of the Australian but ter which these stores are selling is not a good advertisement for the Australian dairy farmers. With laudable patriotism Sir George Fuller, AgentGeneral for New South Wales ordered Australian butter from a large West End store and received an article whieh had a very bad flavour. He promptly went to the store to investigate and found that there was not a box of 1 ‘Kangaroo” butter in the place. All they had was second quality. As a result of his protests a repetition of this sort of thing is unlikely. Retailers are now charging Is 3d per lb for finest Australian, and Is 4c] for New Zealand and about 2d per lb less for second grades.