BRITISH TRADE REVIEW

Sun (Auckland), Volume II, Issue 503, 5 November 1928, Page 14

BRITISH TRADE REVIEW

BANK RATE REDUCTION PREDICTED SCOTTISH THRIFT SCHEME (United P.A.—By Telegraph — Copyright) ssd.ij ‘Z'N pwo tio%[vu}snyj LONDON, Saturday. A change came over the London Stock Exchange last week, the plethora of new issues having proved more than the speculators could digest. A reaction in these speculative industries was inevitable after such a prolonged upward movement, and it is consequently not surprising that there has been considerable liquidation, notably of shilling- shares. There has been nothing like panic, but many of these new shares f.ave fallen sharply, and numerous speculators who thought they were making easy money bv buying them have had a salutary iesson. But while speculative stocks have been having a bad time gilt-edged stocks have been holding their own fairly well, and although business in them has been small quotations have moved within narrow limits, and the War Loan closed strong. Dominion stocks have generally been quietly steady, and although the City of Sydney loan met with such poor support, and dealings in it opened at 7-Bths discount, the underwriters are not perturbed, for, as one financial newspaper points out, the stock is likely to be readily absorbed. % > the gilt-edged market is short ol stock at attractive buying prices. The end of the Stevenson rubber restriction scheme has not so far had any effect on the market, and the best-informed people do not anticipate that it will cause any serious fall, for it will be remembered that prices declined sharply when the Government announced the abandonment of the scheme on April 4, 30 that the effect of removing the restriction has been discounted. There has been some anxiety regarding stocks which accumulated in the Malay States, which are variously estimated at between 75,000 tons and well over 100,000 tons of raw rubber, which it was feared might be thrown on the market all at onc.e. But it is now believed that there is no danger of this. TRADE FORECAST

In its quarterly trade forecast the I Federation of British Industries says the outlook continues unsettled, but with the prospect of improvement in the new year. The report adds: “There are many indications that the Bank of England may soon be in a sufficiently strong position to exercise something approaching its pre-war freedom of action, thus making the actions of tte New York Federal Reserve Bank of less consequence, and unless there is an abnormally drastic restriction of credit in America there is no reason why the new year should not see a considerable easing of our internal monetary problem, accompanied even by a reduction of the ban'k rate.” The Scottish joint-stock banks contemplate introducing an interesting innovation which is likely to encourage thrift among the humblest classes of the population. The proposal is to open deposit accounts for any sum from one shilling upward, allowing the usual Savings Bank rate of interest of 2-1 per cent. Hitherto the banks have not opened deposit accounts for less than £l. The course now proposed will open the doors of th? Scottish banks to a lar£e new class of depositor, who was previously barred unless he were resolute enough to save up piecemeal his first pound. The joint-stock banks will thus be in competition with the Post Office Savings Bank and similar institutions. The report of the Indian Tea Association for 1927-28 contains interesting statistics', which show that teadrinking is still on the increase in Britain. The average consumption per head of the population in. 1927 reaching the highest figure yet attained, being just over 91b.. almost double the figure for. 1880, and nearly eight times that for 1&J0, the year when statistics of tea were first kept. The increase seems confined to tea alone among beverages, since the figures for coffee and cocoa have been comparatively stationary since 1920, and in both cases are less to-day than in 1918, less than lib of coffee being consumed per head in 1927, and less than 2 l-31b of cocoa. BUTTER AND CHEESE MARKET SLOW Under date November 2, the London office of the New Zealand Dairy Produce Board, cabled the following market report, last week s prices being given in parentheses:— .BUTTER New Zealand: Salted, 174 s to 180 s (176 s to IS2s); unsalted, 184 s to 190 s (186 s to 1925); first whey, 164 s (160 s); second whey, 160 s (1565). Deliveries New Zealand this week, 920 tons. In store November 2, 3,900 tons. Australian: Finest salted, 160 s Ao 170 s (164 s to 168 s); unsalted, 180 s to 182 s (182 s Finest unsalted., 170 s to 1745, up to 176 s (172 s to 1765). Irish creamery: Salted, 172 s (170 s to 1725); unsalted, 176 s (1745). Danish: Spot, 196 sto 198 s (194 sto 1965); f.0.b., 189 s (190 s). Dutch: Unsalted, 196 s to 198 s (188 s to Siberian: 156 s to 158 s (154 s to 158 s). Ukrainian: 160 s to 164 s (160 s to 1625). Polish: 150 s to 154 s (152 s to 1565). The butter market is slow and retail prices are unchanged. The estimated stock of all butters in the principal cola stores at October 31 was 11,100 tons, including 30,000 boxes landed on October 31, compared with 10,500 tons last year. CHEESE New Zealand: White, 106 s to 108 s (109 s to 110 s); coloured, 104 s to 106 s (107 s to 109 s); exceptional, 110 s for matured. Deliveries New Zealand this week, 6,750 crates. In store November 1, 15,000 crates. 1 Canadian; White and coloured, 108 sto 110 s (108 s to 112 s); exceptional, 114 s, for matured. English: Finest farmers , 138 s to 140 s (138 s to 140 s). Estimated stocks of cheese in store at London, Liverpool and Bristol at October 31 were:—New Zealand and Australian, 21,200 crates; last year, 16,700 crates; Canadian, 198,500 boxes, compared with 218.500 crates. The market is slow and retail prices . are unchanged. MERCHANTS’ REPORTS Merchants report receipt of overseas cables as follow: — Leonard and Son, Ltd., from their London principal, A. C. Rowson. under date November 3: —“Butter: Australian, 164 s to 170 s; New Zealand, first grade, 174 s to 1765; finest, 178 s; market slow. Cheese, 106 s to 108 s; rather more doing, with fair demand.” Amalgamated Dairies, Ltd., from their London manager, under date 3rd inst.:— “Butter: Our prices nominally unchanged ' (‘Anchor’ 180 s); Kangaroo advanced 170 s. Australian market fairly active, New Zealand still neglected. Anticipate improved demand next week. Danish, 196 s to 19Ss spot, 190 s to 192 s f.o.b. Deliveries New Zealand 921 tons. Stock 3,933. Estimated stock public stores end October, 8,000 tons, compared 10,500 tons last year. Retail prices unchanged. Cheese: White 106 s to 108 s; coloured, 104 s to 106 s; Canadian, 108 s to 110 s; spot, 102 s c.i.f. Market dead quiet. Estimated stocks United Kingdom November 1, 21,200 crates, 198,000 boxes, compared 16,700 and 218,800 last year. Retail prices unchanged. AUCTION NOTES John Carlaw will sell by auction, at their rooms, 24 Wvndham Street, on Tuesday, November 27. at 12 noon, shop property. No. 103 Queen Street, Onehunga. John Carlaw will sell by auction, at the rooms, 24 Wyndham Street, on Wednesday next, at 2 p.m., the plant of a pork butcher.