TRADE REVIEW.

Taranaki Daily News, 22 February 1921, Page 5

TRADE REVIEW.

CONDITIONS IN BRITAIN. BUSINESS DULL . MORE INQUIRY FOR BUTTER. By Telegraph.—Press Assn.—Copyright London, Feb. 19. The hope that the removal of excess profits duty would cause a revival in the Stock Exchange has not been fulfilled, and business for the past week has been stagnant, with a slight decline in values in most departments. The cause of the weakness in not so much selling pressure, though the drop in consuls is due to the realisation of a large block, but the almost total absence of buyers. A feature of the markets is the weakness in home railways on the Colwyn committee’s report, and the gloomy speeches of the chairmen l of company meetings. Industrials are also flat, especially textiles, iron and steel. The only good market is foreign bonds, which are firm and active.

The money market ie very short of credit supplies owing to heavy withdrawals of eash in connection with the payment of taxes. This stringency is likely to last till the end of the quarter. A satisfactory feature of the foreign exchange market is the improvement in the dollar and franc, which is mainly due to the conditions in international trade. Four dollars to the £ is predicted before long. THE METAL MARKETS. The copper market maintains a good tone, especially in America. Although there is no sign of an increase in consumption there is considerable activity here with large bear covering’ orders. Eastern cables state that the Malayan Government has intimated that the accumulated stocks of tin will not be sold till a pro-fit can be realised. The firmness of the position in the East, coupled with the reduced production in other parts of the world, has imparted a firm tone to our market, despite the fact that consumption here and in America,, at present shows no signs of expansion. Freights are very dull. Australian wheat fixtures for March-April are 60s to 62s fid. Tramp owners are finding the greatest difficulty in securing Homeward cargoes. It is expected that many owners and companies who came into the trade., recently with small fleets will be compelled to liquidate or reconstruct, as the values of steamers have fallen 70 per cent compared with last March. BUTTER AND CHEESE. Butter is meeting with improved inquiry, chiefly because the quality which the Government is distributing is excellent. Consumption appears likely to increase, but the supplies are very heavy. A quarter of a million boxes arrived in one week. It is expected the Government will maintain the present price till mid-Marcb, when a reduction will be made from 2s 8d to 2s 6d retail. It is expected that the United States taking a considerable quantity of Danish is causing proces to harden, but the British price for Danish ifc still 2265. The cheese trade is slow, and arrivals heavy. Five New Zealand steamers with 102,000 crates are discharging, also 8500 crates of Australan. Quotations are : New Zealand white 148 s to 150 b, colored 154 s to 1565, occasionally 158 s. Australian is offering at 14fis to 150 s. The Government stocks of cheese are estimated at 6000 tons. —Aus.-N.Z. Cable Assn.