BRITISH TRADE

Hokitika Guardian, 11 August 1931, Page 5

BRITISH TRADE

FORTNIGHTLY REVIEW.

CONDITIONS DEPRESS STOCK EXCHANGE,

STRONGER TONE AT CLOSE

LONDON, August 8

Three weeks’ account on, the Stock Exchange which has just concluded has. been one of the most dEturm»g for a long time due to a combination of adverse factors arising out of the ct)rnpi|pated international situation, especially the German crisis last Wednesday, A sharp break of the principal exchanges upset the markets greatly. Many pessimistic rumours hud been current and it was feared that gold withdrawals would be resumed, necessitating a further advance of the Bank rate. Fortunately, . these fears proved groundless, and a slightly more confident tone was apparent when the markets closed yesterday.

GILT-EDGED WEAKEN. In the course of the three weeks there has been a serious decline of most gilt-edgeds, British funds showing falls ranging from £.l 12s 6d to £3, compar. ed with July 17. Australians dropped by from £2 to £4, The only matter for congratulation is that, though prices have been mark* ed down, there lm« been little pressure, to sell, except in the gilt-edgeds, foreign stock and railway mairkets, und the actual 'volume of business has been limited. As the “Financial Tunes’’ points out, while prices generally have moved downwards, the falls in many instances have been out of all proportion to the amount of selling, and were mainly reflected in acute nervousness pervading. COMMODITY PRICES. The improvement in commodity prices during the latter half of June, following the Hoover debt moratorium proposals, lias not been maintained and the downward movement was resumed in July. Wheat, cotton and rubber touched low records, and, with supplies of each continuing to exceed consumption, there does not seem to be any prospect of an improvement. ,

RUBBER PRODUCTION. Regarding rubber, the Mincing Lane Tea. and Rubber Sharebrokers’ Association report says: “Tlie silver lining to tlie cloud lies in the strong probability that the wavering policy of closing down is more likely to become effective. With no early possibility of largely increased consumption the immediate salvation seems to lie in/ reduced production, but it is difficult to see lio\v far this call be carried before the resultant improvement in price, arid the best interests of industry must be served by those .endeavouring to find now" uses for the material, ”

DAIRY PRODUCE. Otie result of the German financial crisis has been to weaken the butter market. The inability of Germany to buy butter caused quantities from Denmark and the Baltic States to be diverted here, with the result that, although consumption here remains good, stocks in cold storage have increased largely. According to the Empire Mar. keting Board, cold store stocks on July 25 amounted to 923,856 boxes, corm pared with 797,600 a fortnight earlier. It is significant to note that the prices of Continental descriptions weakened much more than Australian and New Zealand, and to-day’s quotations for Danish were only 2s above New Zealand.

Newspapers have been giving prominence to the large arrivals of Siberian butter lately, but only small quan. titles of it are being sold. Traders are boycotting it, and it is doubtful whether 10 per cent, of the arrivals has been soldi, although it is 12s cheaper than Australian. It is estimated that there is now about loO.OOOcwt of Russian butter in cold store here.

FRUIT MARKETS. - The first large shipments of Australian oranges are due about the end of the month. They will probably arrive on a well supplied market, for South African shipments have been heavy. Californians, Argentines and Brazilians are also plentiful, consequently prices are falling, South African navels fetching 10s to 14s in London and. 10s'6d to 12s 6d in Liverpool, Other fruits are coming in freeiy. Considerable quantities of apples are arriving from the United States. English dessert apples are being marketed in fair quantities, also French and Belgian pears Italian peaches and plums and Almeira grapes.