BRITISH TRADE

Hokitika Guardian, 23 March 1932, Page 8

BRITISH TRADE

FORTNIGHTLY REVIEW

MONEY MARKET VERY FIRM

LONDON, March 19.

There could be no better indication of the strength of the Stock Exchange than the way the markets stood up to the shock of the death of Ivan Kreuger, head of what the 1 ‘Statist” calls, “the world’s greatest industrial Undertaking,” whose stocks had stood at one time for all that was safest among international speculative issues. Indeed, the effect was much less than might have been anticipated and though some international stocks were depressed at first, recovery was well under way when the markets received another shock, this time the pleasant one, in the shape of an unexpected reduction of the Bank rate.

OUTBURST OF BUOYANCY. The reduction had immediate effect and an outburst of buoyancy swept over all markets, especially gilt-edg-eds. When the reduction was followed by the easy conditions of the money market and revenue returns showing that a small Budget surplus was probable, substantial rises occurred: 1 Among the stock which benefited are Australians, which had been steadily recovering arid' now show firmness all round. The reduction in the Bank rate is regarded as being made with a view to helping the Government’s conversion' scheme, though its success wris assured beforehand as it is understood that about £100,000,000 of the maturing 4J per cent. Treasury oonds are held by the public Departments.

DAIRY PRODUCE. Although butter prices continue low some satisfaction is found in the fact that the consumptive demand is strong not only in Britain but three or four European countries which had been buying . freely. This enabled importers to clear away the very heavy arrivals. The total imports of the past three months show an increase ove, I the same months of last year of 289,000 cwt, and no fewer than 517,000 cwt over the totai in 1930, yet consumption has been so good that our cold storage stocks at the beginning of March, were only 46,000 c'vt in excess of the corresponding date'last year, and 121,500 less than in 1930. The demand for Australian and New Zealand butters has been stimulated by their cheapness, aided by the efforts of many shopkeepers to push Empire goods. Best Nevy Zealand butters are retailing at the stores at 14d to 16d per lb and. Austalian at I2d and 14d. The Australian, fruit season opened with the arrival of the Narkunda and Jervois Bay, bringing pears ■ and grapes. Unfortunately they'-did not come on - a good market as the South African season is at its height and large supplies are landing, not only pears and grapes, but also of plumbs,, peaches and nectarines. Total shipments already advised from South Africa amount to 1,598,000 parkages. These are arriving in splendid condition,, and, thanks to the comparatively short sea journey, show very little waste consequently Australian fruits have met very strong competii tion and the prices so far realised for pears are only about 11s per bushel.