TRADE BETTER

Taranaki Daily News, 24 January 1922, Page 5

TRADE BETTER

CONDITIONS IN BRITAIN. GOOD BUTTER MARKET. REVIVAL IN WOOL. By Telegraph.—Press Association. London, Jan. 21. Interest on the Stock Exchange continues to centre in gilt-edged securities, which maintain their strength in the face of strong competition from numerous new issues. There is a strong demand for all existing investment stocks and shares, of which the quantity offering is very restricted. British Government securities are especially buoyant and the improvement in the Government’s credit is shown by the -fact that 5| per cent. Treasury’ bonds at 99 are being replaced by an issue of 5 per cents, at the same price. Another indication of the Government’s strong position is the underwriting of £30,000,000 of 3 per cent, local loans stock at 57. The last issue of this stock, in October, wa.; placed at 52, and a similar issue last January at 50. This position is causing the market to anticipate a reduction in the bank rate, but this seems only possible in the event of an early reduction of the American bank rate.

Foreign exchanges have become steadier since the close of the Cannes Conference. The decline of the German mark to 840 is attributed to the commencement of the payment of reparations. WOOL MARKET STRONG. The outstanding feature of the wool trade is the great strength of raw material markets, due to general competiion. France, Germany, the United States and the home trade are all keenly competing at the London sales for suitable lots, especially merinos and fine crossbreds, their competition being indicative of large consumption and confidence in the future of these wools. One of the principal brokers considers America will shortly become an important factor as stocks of merinos in America are very small. If so, there is no prospect of lower prices for merinos. Conditions of the tin market in the United Kingdom are unsatisfactory. Consumers are buying little, and several tin plate works in South Wales may be compelled to close before the end of February owing to lack of orders. The provision trade has undergone a great change for the better. The improved demand for butter has been followed by a similar improvement for cheese, bacon and lard, which have been terribly depressed months but participated in the revival. With good sales at rising prices the butter position continues to improve, with a strong demand. The estimated consumption is now fully 50 per cent, in excess of that of a month ago, and Government stocks are practically cleared, except oddments. A large quantity was recently shipped to France, Belgium, Switzerland and Italy. Probably the greatest amount of Australian was sent* s to the Continent in the history of the trade. Smaller quantities were shipped to Canada and the United States. MARGARINE DESERTED. A satisfactory feature of the trade is that the public are largely deserting margarine, although its price is reduced. The authorities of St. Bartholomew’s Hospital have decided to give patients, nurses and staff butter in lieu of margarine, which they have been compelled to use for several years owing to the dearness of butter. Other institutions are acting similarly.

Frozen mutton and lamb are meeting with active demand, which large supplies and constantly hardening prices have not failed to check, as supplies of home-killed are short. Frozen beef is very dull, with little demand, owing to heavy marketings of South American chilled, which is selling very cheap. Further large quantities of chilled are arriving, so there is little prospect of an early improvement in prices. Last year’s imports of beef created a new record, amounting to 11,630,363 cwt., a million and thYce-quarters above those for 1920, the previous best. Twenty six per cent, consisted of chilled. The Argentine was the largest sender of chilled and frozen beef, with 64 per cent, of the total. Australia next with 14 per cent., Uruguay 10 per cent., and New Zealand 7 per cent. Imports of mutton and lamb were 6.810,151 cwt., also a record. All exporting countries increased their output except Australia, which decreased 1,750,000 cwt. New Zealand was the chief supplier with 57 per cent., Argentina 20 per eent., and Australia 6 per cent. —Aus.-N.Z. Cable Assn.