BRITISH TRADE

Hokitika Guardian, 5 October 1932, Page 2

BRITISH TRADE

FRENCH BUTTER QUOTA ABANDONED. LONDON, October 1. France’s abolition of tlie quota system for butter imports is expected- to lead to ■ the purchase of good quantities of Australian and New Zealand, for there is .a great- soarcity of butter in France and the retail price there has been as high as 42d a lb. Although the abolition of the quota system has been accomplished by an increase in the duty on Australian and New Zealand butter to 18d a lb, French consumers will be able to buy this commodity in the vicinity of half crown, so it is not unreasonable to expect a good demand in the near future.

An interesting development- in the butter trade is that.the Danes contemplate following the example of Australia and New Zealand in putting butter in packets on the British market. According to the Copenhagen

newspaper “Politiken,” two representatives of Danish firms have visited London and have arranged with a great wholesale firm which for some time has been packing New Zealand butter in cartons, to commence packing Danish butter similarly. This experiment. needs the sanction of Jthe Ministry of Agriculture in Denmark, and when this is given operations will commence, possibly within two months.

Traders here do not regard the exptjpnnsnt as likely to have a serious effect on thie wale of Australian and New Zealand butter. They remember that some forty years ago a big multiple firm started selling Danish butter in cartons, but, owing to non-success, abandoned the system after only a few months. WAR LOAN CONVERSION. The announcement of the final figures of the war loan conversion is regarded ars highly .satisfactory, but it had 1 little effect on the Stock Exchange, 1 as the success of the qperation had. been; fully anticipated and on the strength of .this expectation all gilt-edgeds had been steadily hardening. There were some profit-taking sales in British funds by operators, who want money to subscribe to the new capital issues, of which a plentiful crop- is expected now that the embargo has been removed. AUSTRALIAN RECOVERY. The mod remarkable feature recently has been the wonderful advance in Australian -Government stocks to levels which a few months ago would have been regarded as absolutely, unattainable 1 . Commonwealth 5 per cents actually touched £lO7 yesterday, though the middle price, was about £lO6 os. At this figure its yield to the investor works out about 4£- per cent. At the beginning of the year this stock would have, given the investor over Gi per cent. This is indeed a- striking testimony to the recovery of Australia’s credit. WOOL SALES. Mr W. Bevereux, representative of the Australian Woolgrowers’ Council, reports that the improved tone and widening competition at the London sales continued for the greater portion of the week, prices showing a slightly hardening tendency for both merinos and cross-breds. The Bradford tops market is qniet, merino topmakers maintaining their quotations and spinners not operating freely. Cross-bred) yarns show . little change. The futures markets at Roubaix and Antwerp have fallen slightly land their tone is quiet.