TRADE

Taranaki Daily News, 2 May 1921, Page 5

TRADE

MARKETS REMAIN FIRM.

CHEAP DANISH BUTTER

NEW ZEALAND NOT SELLING.

By- Telegraph.—Press Assn.—Copyright,

Received May 1, 5.5 p.m.

London, April 30. The deadlock in the coal dispute had the effect of curtailing business on the Stock Exchange, and checking the optimistic tone caused by the favorable reception of the Budget. The reduction in the bank rate, though disappointing to some because it is small, is regarded as the precursor of a further reduction shortly. But although business was curtailed, the market was not depressed, except for home railway stocks. On the other hand, gilt-edged stocks continue to rise, except Consols, which will find a serious rival in the new 3| conversion loan, the terms of which are described as lavishly generous. It is expected dealings in this loan will commence at about sixtytwo. All Indian issues improved on the success of the seven per cent, loan, which is in brisk demand at about 55s premium. Industrial stocks continue firm, with la good tone, despite the coal deadlock, though some fears are expressed respecting the future unless a settlement is soon reached.

FOREIGN EXCHANGES.

The movement of foreign exchanges reflect the political position rather than the commercial position. The outstanding feature is the improvement in the value of the French and Belgian francs to about 51, which is regarded.as showing that an early and satisfactory solution of the reparations difficulty will be found. I There are little prospects of any business being done in New Zealand and Australian butter, unless the Government drastically reduces its price. Danish today is offering freely in London at 224 s per cwt., so it is hopeless to expect to sell New Zealand at 2565. Some French butter is expected in May, but it is hardly likely to come if the glut in Danish continues. The metal markets have been fairly satisfactory, although the coal strike has checked the consumptive demand. The strength of tin is attributed to good reports from America, where consumers are showing more interest. It is reported tin-plate factories there are working at about 30 per cent, of their capacity. The American demand for spelter has also improved, particularly from galvanisers. The position in Europe is unchanged, though there are indications that consumers are bare of stocks. The Bradford wool market shows a better tone, despite the industrial troubles. There is less liquidation, and a hardening tendency in quotations. A certain amount of hand-to-mouth spot business is being done. The deflation of stocks of tops and yarns is nearly completed, leaving the position much healthier and firms more comfortable. Stocks of piece goods are fairly large, but are gradually decreasing. There are more orders and a better tone in every section of the piece goods trade, both here and on the Continent. Germany continues very active.

HIGH WOOL RESERVES.

There is no reason to anticipate much change in values at Tuesday’s wool sale. The Home trade will probably be slightly more active than lately, though the restriction of coal and transport is an adverse feature. The B.A.W.R.A. policy is causing much discussion in the trade, and a strong feeling prevails that the policy of high reserves is untenable in face of the increase in supplies as compared with the consumption, the increased financial stringency among growers, and the difficulty of keeping control over all owners. The opinion is expressed that high reserves mean much smaller sales, whereas smaller offerings at an economic price would help restore confidence. tempt a demand, and would probably enable more wool to be marketed. Once the demand is stimulated reserves can be tightened gradually.

The textile industry in Germany is enjoying great prosperity. Returns for 1920 show that shareholders received huge profits and workers’ wages were substantially increased, many earning ten times more than before the war. Many big firms greatly increased their capital. Eighteen companies originally employing a capital of fifty million marks have now increased to 106,000,000. Thirty-seven companies paid dividends in 1920 ranging from ten to thirty-six per cent., while twelve paid bonuses of from ten to twenty per cent.—Aus. and N.Z Cable Assn.