TRADE AT HOME.

Taranaki Daily News, 6 February 1922, Page 5

TRADE AT HOME.

MILLION’S TO INVEST, BUTTER MARKET FIRM. CHEESE STILL BETTER. By Telegraph.—Press Assn.—Copyright. Received Feb. 5, 5.5 p.m. London, Feb. 4. The past week has seen the first reactionary movement on the Stock Exchange this year, due largely to disquieting news from India and Egypt, which caused some weakness in giltedged. Other factors were reaction after the rush of new issues on which heavy calls are falling due ana tne fear of difficulties connected with marine reinsurance companies, which may lead to realisations of securities. The setback has not been long lived, prices generally closing well above the worst. A satisfactory note • was that colonial stocks were little affected. Another interesting fact is that the only giltedged which did not decline was Irish land stock.

Capital issue statistics reveal the remarkable fact that new flotations in the United Kingdom far exceeded any month during the preceding two years. The Statist gives the amount for January as £158,000,000, compared with £05,000,000 in February, 1920, wuen the boom was at its highest. Of these £158,000,000 a sum of £151,000,000 was rapidly overscribed, probably constituting a record, and placing underwriters in a very happy position. The chief feature of the foreign exchange market has been the rapid improvement in ths dollar rate to 4.32, the highest point since August, 1919, which is attributed largely to the Senate passing the Bill for refunding the Allies debts. Further appreciating of the value of the sterling is not improbable, but the strike in the gold mines on the Rand may have an important effect. Large gold shipments to the United States in the last year or two have done much to strengthen exchange, and cessation of these shipments, even, for a few weeks, may cause the rate to fall again. Describing the wool position, a leading authority says that despite remarkable strength ahd an advance at the raw material end of the trade, things are not altogether happy. The lull in new business doing during the last fortnight is not merely superficial and transient, but is justified by the small volume of ho<ne trade. A spurt in values has checked a slight revival in the demand at the piecegoods end. There has been more than temporary

nervousness in the placing of new orders, and consequently manufacturers view the upward movement with great misgiving, and fear that the new basis will be difficult to maintain./ Spinners would feel more confident if prices were governed less by raw material and had more support from the weaving section. Fortunately the export yarn business continues good, and there is little sign of any diminution of demand from the hosiery trade. There has been a IRr-Je more activity in the cloth trade for export, the Far East and America showing increasing interest, but the general economic and political atmosphere is hardly yet favorable to more than a very gradual improvement. Although the trade in butter was slower this week, owing to heavy colonial arrivals and a decline in Dan. ah, the prospects are regarded as favorable. Prices will fluctuate with the Danish variations, but consumption continues good, and is likely to remain so while prices are about the present level. There is considerable comment regarding the. disparity between Danish and New Zealand, the former being retailed at 21 d per pound compared with New Zealand at 16d. One of the chief reasoßs is the fact that Danish arrives iogularlv thrice weekly, assuring customers a'constant supply, whereas New Zealand arrives at irregular intervals, and slow and uncertain discharge prevents retailers getting their requirements regularly. One of the leading importers says that if he could assure retailers that they would receive their usual quantities every week New Zealand prices would be within a few shillings of Danish. The prospects for cheese are very promising. Canadian exports have prac--ticaßy ceased, and the stock whereof •here has been materially reduced. Stocks of New Zealand and Australian are none •too plentiful, and the demand is strong, despite higher prices.—Aus.-N.Z. Cable ■Assn.