BRITISH TRADE

Hokitika Guardian, 14 July 1932, Page 8

BRITISH TRADE

EFFECT OF CONVERSION. REVIEW OF CONDITIONS. LONDON, Joly U ■ The -sensational- rride in gift-edged stocks Hast Friday week, following the announcement' of the Wat Loan conversion, has continued with an occasional check, and the satisfactory re-sult’-at Lausanne has given the Stock Exchange a further incentive, to . strength. In the middle of this'week (prices showed a slight setback, owing 'to 1 profit-taking, but later the bull.again came on the scene, and ‘to-day’s . prices are the highest recorded. The .recovery -of the gilt-edged mar ket is almost phenomenal. Thus, 2; per cent. / Consols are now £73 ss, i.ompared- with £49 10s, last year’s.lowest quotation and 3j per cent, con version loan it £9B 12s 6d, comparevvith £67. As one financial writer saye, ; the an nouncement of conversion might be likened to a charge of dynamite, fo in most departments prices have bee blow s ky high. ’ Among the stocks which show a great recovery -are Aus ' tralian and New Zealand, - which arc, now in such great demand that . brokers have great difficulty in secui irig. them. This is not surprising,. as some show yields exceeding 6 pe> 'cbfitiy while British'funds -arc? now ov the 3* per cent, basis.’’ : :;' ‘A s the - ‘ ‘lnvestors’ Chronicle” points ;oiit, the War Loan ■ conversion proposal proved a - veritable God-send to jtlffi- Australian Commonwealth, Severn 1 stocks have 'risen to par, or a steal : :breteium,“ so' that apprehensions re ‘gai’ding Australia’s' ability to provicb ijrbr/the redemption, of those issues b;. i'tiieans' of conversion offers have beer, - removed.' Moreover, if anythin', faWouriible comes from Lausanne and Ottawa, it is only reasonable to exoect fin improvement -in prices for primary products, which would also favourably .influence' Australian < .and New Zealand economic find financial conditions.

. Other departments of the Stock Ex change are also* active, at much improved prides, partly owing to the national credit having been raised tc a ‘higher basis. : „ " , '

;■ Among the' .shares shoeing improvement 1 are, Australian banks, • which have been- under A cloud for , a long time, but are now attracting the at tentibn of investors,- owing to the, probability of better results -being likely to follow the improvement in Australian companies, and the fact that the hardening of wool prices if expected-to'have a'good effect on pastoral oompaies. •' ‘

- M THE; FRUIT MARKET. f Although.! supplies ofapples tip.' week amounted-to-347 boxes, compared with 653 previously, and only 195 arc due next week, there is no. -improvment in the market: There are larg supplies of soft fruits, though i considerable portion of the strawbeixie is being taken by the jam-maker: and duties are reducing, the quantities from the Continent, otherwise the apple position would have b/en even "worse. ■’

' 'Commenting on the position, a large importer- say there is no doubt that tlie quantities of "''Australian ‘apple: have been ‘too heavy, but the indifferent condition -and quality of the fruit -are the real’ causes of the present extremely low values. There is a general complaint concerning tht quality of Tasmanians, especially in the latter half of the* season,-in which the- fruit li-as not been up to normal.

iPears make a pleasant contrast. They are fetching excellent prices, up to 24s a bushel, and tlie ’quality and condition of moist shipments have left little to be desired, i DAIRY PRODUCE.

The butter market is .at lKst showing ‘signs of recovery. Buyers appear mojre confident, arid prices for all descriptions afle steadily hardening. Production in Denmark and Europe generally is declining, and it is pre j siimed that 'the statistical' outlook will improve, especially as, at the-present low prices, consumption in the United Kingdom is exceptionally good. 1 Cheese also shows a more hopeful position, the prices for New Zealand ajfid. Australian having improved ,1s to 4s, and, with the spell of warm wiea’ther, consumption has much increased, and is likely to become still greater.