TRADE REVIEW.

Taranaki Daily News, 27 July 1920, Page 5

TRADE REVIEW.

MONEY MARKET DULL* BETTER WHEAT PROSPECTS. By Telecraph.—Press Assn.—Copyright. London, July 24. The money market is dull and featureless and likely to remain so, as the fear of a higher bank rate in the autumn appears entirely to have disappeared. The course of foreign exchanges, especially the fall in American exchange, caused some ui'settloment, but the American fall is to a large extent quite normal, and is owing to preparation to pay for produce which Britain and the Continent will import largely from America in the closing months of the year. It is unlikely the value ol the pound sterling in New York will reach a very low level, as the trade balance is improving. ' Mr. Lloyd George's speech on the Polish question, coupled with the disturbances in Ireland, caused some disquietude on the Stock Exchange, where business was considerably restricted, but prices generally were fairly maintained. Reports from Germany state that Mexico is endeavoring to regain her position as the largest silver producer in the world,' and is arranging N to have all the mines worked, even those lntliertq regarded as unprofitable, partly at the Government's expense. Wheat prospects improved greatly last month. It is now certain that America, Canada, Argentina, and India will all have surpluses. ■DECLINE IN FREIGHTS. Freights continue to decline, as the supply of cargo steamers far exceeds the demand, particularly in the American trade. One steamer was chartered early in June to carry wheat from Montreal to Antwerp at 16s 6d per quarter. The same steamer wants a similar charter at the end of August, and the best price obtainable is lis. The position of the tallow market is full of interest. Good authorities believe that the last decline brought the value down to a basis at which business can be done. Meanwhile Australian shipments are arriving for which the purchasers paid over IflOs forward, whereas the present value is only about GOs. But the last of these contracts terminates at the end of the month. Considerable quantities were purchased by the Dutch at prices above 100s months ago. It was intended for Germany, but most of this was sent back, as the Germans could not afford the price. It is now likely there will be a. brisk demand for Germany, with some recovery in prices. COLONIAL MEAT MARKET.

Trade in colonial meat is restricted by the large quantity of inferior offered. Buyers are mostly refusing to taJie any but the best. A suggestion is made in certain quarters that the Government would do well to boil down its huge accumulation of stale meat held in Australia and New Zealand rather than face the inevitable cost of storage, interest, and further depreciation. Advocates of this proposal point out that probably the actual loss on boiling down would be less than the Government would incUr if. it held oil. It would also enable the expensive establishment of the Ministry of Food to be dispensed with. This plan would eleiir the decks for tiie new season's New Zealand meat, and 'prevent, further lowering of the reputation of colonial meat, which has already been greatly prejudiced, by the marketing of inferior stuff. The Government holds about 00,000 tons here, and it is estimated that at the present rate of shipment will still hold 3,000,000 carcases in New Zealand at the end of December.

Business in the Bradford wool market is chiefly hand, to mouth, buveT9 waiting for prices to reach the lowest level. Spinners are not disposed to buy forward, but probably will be compelled to uurehnes in thj course of a few weeks. There is a possibility of the rd'cvsi'ives of the woollen mills striking at the end of the month for higher wages, which the employers refuse, contending that the recent offer of 10 per cent, advance was generous.