BRITISH TRADE

Hokitika Guardian, 11 March 1931, Page 3

BRITISH TRADE

FORTNIGHTLY REVIEW. (United Press Association —By KUeetru telegraph—Oopyrighti LONDON, March 7. For the first time since July, 1929, the ‘‘Economist’s index number of commodity prices at the end of February shows an upward movement, liie “Economist” says: “Though the percentage increase is only one-thied of i per cent, it is at least satisfactory that the prolonged downward sweep appears momentarily -to be arrested.” The upward movement continued this week, and bis given rise to a feeling of quiet optimism, which is reflected on the Stock Exchange, where prices in nearly all departments have shown a general improvement and closed yesterday with a strong tone. Apart 'from the rise in commodity prices, several other events have had a reassuring effect, notably the conclusion of the Franco-] talian naval agreement, the Indian settlement, the reduction of railway wages, the result of the London County Council elections. and last, but not least, tbe political developments in Australia, which brought about a considerable increase in the values of all Commonwealth and State stocks. AUSTRALIA’S POSITION.

Commenting on Australia’s troubles an important London stookhroking firm, ni a review of the financial position, says: ”Mr E. G. Theodore’s latest proposals give ground for apprehension lest a policy of inflation may he adopted. If the hanks should prove unable to exert .sufficient influence to prevent the permanent depreciation of the currency, the strain involved in paying external debts might wm acceptance of the invidious argument that the loans borrowed when the Australian pound and sterling were linked together could with justice he repaid in Australian currency when the link was broken. Any such repudiation of both the letter and the spirit of definite contracts is, however, far from the wishes ol all Austi a-liuns who have any understanding of financial matters. At the very worst, therefore, the risk appears to be one of partial failure only, and of some postponement of the final dates for ■ the redemption of Australian stocks, a contingency which lias already discounted their price.”

COMINC FRUIT SEASON. PROSPECTS FOR APPLES MORE FAVOURABLE. LONDON. Alan it S.

'l he prospects of the forthcoming Australian and New Zealand apple season is generally regarded as fairly favourable. North American shipments are still heavy, hut are expected steadily to decline, and by the time the first Australians arrive, early in April, the supplies from America are unlikely to he excessive. Another factor which should help is the shortage of Spanish oragnes due to damage by frost. Orange prices are steadily rising, and are expected to become s dear that the demand may he transferred to apples. The prospects fei pears for the immediate future do not appear good, for the market is plentifully supplied from other sources and importers generally consider that Australians should not arrive belor<> April by which time the supplies from South Africa will he beginning to decline. DAIRY PRODUCE PRICES

Although the demand for butter has slackened somewhat, prices are well maintained, and importers are hoping to be able to keep values about their present level for a week or two more. The estimated deliveries from London in the last six weeks averaged fully 70.000 boxes weekly, so there will be no surplus stock. The Continental •demand is declining as the production there increases, hut it is expected that the Irish Free State will require to import at least 40,000 boxes this month. The tariff duty of 4d a lh has hitherto restricted purchases but efforts are being made to get this reduced, if not completely taken off.

FAULTY AUSTRALIAN GRADING. The grading of Australian eggs and other food products met with rather a severe criticism at the dinner of the London Egg Exchange. The chairman (Mr Alexander Mitchell) said that all wished to see Australia return to financial strength but if Australia wanted to get back her business she must see that th e people employed in giving grading certificates were honest and straight. He said that without fear of contradiction, not only as regards eggs but also other commodities from the Cominomvtealth, which he had had the privilege, of handling for over ‘lnrty-five years. “Some merchants here have been ‘mugs’ enough to buy goods outside the regular channels, so they cannot hold anybody responsible except themselves.” With all due respects to the development of Empire produce, he hoped that it would go out to the people of Australia that th e British trader only wanted fair treatment.