The London Market.

Shannon News, 20 February 1923, Page 4

The London Market.

IMPROVEMENT CONTINUES. NO SIGN OF WEAKNESS IN .BUTTER. BEEF SUPPLIES exci^sive. LONDON, Feb. IT. Business on the Stock Exciiango hus been distinctly quiet during the yi.st week, but the undertone is good, despite the continuance of the critic.nl state oil affairs in the Ruhr, and U:j belief is general'that any real improvement in the position there will bn>-.g about a renewal of activity in sto.k markets. The principal busmen is still being done in gilt_edged securities a..d other investment securiue.-. out the satisfactory Board of.Tiu.o returns andtho favourable anntial of a number of companies, n. i.iuly sevens soft goods houses vko..v. . rolits show, a remarkable recovery l.j.a the lean year 1921. Have had ;. s. laining influence on the indultii.i . larket. MARK'S SPECTACULAR RE CO VERY.

The feature of foreign exchanges iS the spectacular recovery of the mark, thanks to the action of the German Government. Undoubtedly, the recent col-apse w.is overdone, and the improvement has been, to some extent, in the natur • of a natural reaction. There seems to be some ground for a hope of of inle. vention tp bring about a teUlenr at between France and Germ:uiy. This is encouraging some * uemand fur marks, but owing "to the pressure of rapidlyincreasing prices, there is need for more marks to conduct business/ and the note issue is being increased at an accelerated rato. This is causing some fears of a fresh collapse. ' COTTON INDUSTRY FEARS SHORTAGE.

The " Economist's " Manchester cor. respondent reports that there is an increasing apprehension in Lanea. shire regarding future supplies of raw cotton. The last two seasons' turnout in the United States has been very sma'l and coincides with an increasing consumption there. During January the United States consumption was 610,375 bales, which is nearly a re. cord. This season's crop in the United States is expected to be only ten million bales, whereas the consumption is estimated at 7,238,000. Therefore, it is satisfactory to know that the British Government has promised to facilitate a private Bill introduced in the Ho\ise of Commons for a compulsory levy of 6d. a bale on all cotton im. ported into the United Kingdom to create a fund to finance the Empire Cotton Growing Association. The Bri_ tish Industries Fair, which opens at White City, Shepherd's Bush, on Mon. day, simu.taneously with a similar one at Birmingham, promises to be an evon greater success than its eight predecessors. Twelv > hundred British manufacturing firms- Avill show their best products, and the White City will be a gigantic shop window with a front four miles long. The Overseas Department of the Board of Trade., which organised the fair, has issued invitations to a quarter of a million Home buyers and fifty thousand from overseas. The Leipzig -Fair opens on March 2, but owing to the disturbed conditions in Germany, it is anticipated that few Americans or Canadians will risk the journey thither, but will spend their money in England.

ANTICIPATED ,BUTTER BOOM. A'though supplies, of butter have been exceptionally - heavy, the market has shown no sign of weakness, and practically the whole of the arrivals have been absorbed, for not only is consumption wonderfully good, but many retailers have been laying- in stocks in anticipation of a shortage Of supplies. The later position appears most hopeful for Australian and New Zealand butters as supplies from other sources ai'e getting more and more re. stricted. Irish is off the market ow. ing to makers having shipped their stocks, 'fearing destruction or pillage by irregulars, and Ireland is actually importing Australian and New Zealand bettor. Drought in the Argentine con. tinues and a considerable shortage exists in the United States, while the bulk of the 'Danish output is going to Continental markets. The chairman, at the meeting of the Home and Colonial Stores, one of the multiple shop companies, and one of the largest buyers of , Australian" and New Zealand butter, said that he was somewhat anxious regarding the course of prices as the United States was being was being driven to compete with us for supplies in New Zealand,, Australian, and Canadian markets, which Britain had always hitherto regarded as her own. This was due, first, to the fact that, although the United States was increasing her butter production, her population was growing faster and the spending power was good; -secondly, to the cost of 'iving advancing; thirdly, to prohibition causing a large increase in the consumption of milk. Much cream was being used for ices, etc., thus .reducing the quantity available for butter and cheese. FASTIDIOUS BEEF EATERS. Regarding the outlook for frozen meat, " Weddel's Annual Review" says that the world's -present supplies of beef in the form of cattle are un. doubtedly in excess of the demand, but last year's prices were below the -cost of production. That state Of affairs i can only continue for a limited period. | A profitable stage must be reached by , 1 means of a reduced cost of production, j lower freezing* and handling- and transit charges, or some expansion "of the demand. Last year's reductions in charges afforded an appreciable amount of relief, and prime costs, doubtless, are following suit, but unr fortunately the demand for beef has contracted seriously, To a certain extent this has been due to the poor duality and stale condition of much frozen beef shipped since the Avar. Al. tttough some improvement has been noticeable among fresh arrivals, pro. ducers would do well to bear in mind the fact that the public have become much'more fastidious in regard to the quality and appearance of the meat they buy. A very different state of af fairs- exists regarding mutton and' lamb. The shrinkage in sheep figures, which has been apparent in practically , every country of the world for the past ten years, continues unabated. This shortage of mutton and lamb supplies points to a good market for these descriptions in the next, few years, especially prime qualities. "' STATISTICAL POSITION. A*general view.of the statistical position, together with a consideration of the probable tendency of consumptive

demand, leads to the conclusion that mutton and lamb will remain relatively dear for some time to come. The foregoing observations are made on the assumption that the political troubles of Europe and the financial negotiations with America will pro. gress steadily toward a satisfactory . settlement, and that the general trade of the British Empire will continue on the upward, and uneinpjjayment gra. dually decrease. It would seem for a time that the downward trend of food prices has almost come to an end, and, therefore, the average prices of mut. ton and lamb during 1923, are unlikely to be~.lower than in 1922, while beef may show considerable improvement. Wool Lower.* AT THIRD NAPIER SALEABSENCE OF AMERICAN COMPETITION. VALUES Id. TO ljd. LOWER. NAPIER Last Night. The third Napier wool sale of the season, which opened on Saturday night, concluded to-day, .when 27,500 bales were offered to a bench of 51) buyers, representative of most sec. tions of the trade. From the outset, it became evident that competition would not be so keen as at the January sale, and with the wool, generally speaking, not in such good condition,as t&at disposed of earlier in the season, prices suffered to a certain extent. There was a general reduction of from Id. to ljd. per lb., c which • brought prices back to those ruling at the December sales. A noticeable feature of the sale was ' the lack of American competition. This undoubtedly haS its effect on the keenness of the sale, and also on the prices realised. Bradford was the mainstay of the sale, as the bulk of Hawke's Bay wool is suitable for this market. Prices for Bradford wools were also easier by a Id.' France wasvery keen after lambs' wool, whilst Belgium and Germany had a' fair sprinkling of orders. Local mills were not active to any extent, but scourershelped materially to keep the values'of' pieces and bellies up. Those were prob.. ably the best selling'proposition of the day. About 50 per cent, of the cata.. logues were sold under the hammer,, but a large amount of passed in lots: was sold subsequently. Prices: Souths - down, : 22d to 24ijd; medium halfbred super, lSd to 23*d; average, 16d to> ISJd; interior, 14d to ls*d; coarser halfbred, average,' 13d to 14&d; inferior lOd to ll£d; tine crossbred, super, 14d to 15d; average, 32d to inferior, '9id to 10Jd; medium crossbred, super, 12d to 14d; average, 10Jd to 12d; inferior, B£d to 10Jd; coarse cross bred super, lOd to 12d, average, 8d to 92d; inferior, 7d to 7dd; low cross, bred supei\ S£d to 9Jd, average, 7Jd to B|d; inferior, 6Jd to 7Jd; hoggets—fine, 13id to 141 d; medium, 13d to 14ld; coarse, 9d to 113 d; low, 7d to 9d. Lambs wool —fine, to 16d: medium, lid to 13d; seedj and infer, ior, 52&d to lOd. "Bellies and pieces—halfbred, good to super, 12d to 16fd; crossbred, good to super, IJJJd to 12fd; low to medium,- 6*d to lOd. Crutch, ings, medium to good, 6Jd to 71d; inferior and seedy, 4d. to 6|d. Locks,, crossbred 4d to s£d.