HOME TRADE.

Taranaki Daily News, 3 April 1922, Page 5

HOME TRADE.

FINANCIAL POSITION. MONEY EASIER. BANK RATE LOWERING. By Telegraph.—Press Assn.—Copyright. Received April 2, 5.5 p.m. London, April 1. Buoyance of gilt-edged investment securities characterises stock exchange operations. These markets are not booming, as they did in the middle of February, but the tone is strong. British Government securities received valuable assistance from the Commonwealth’s bold action in leading the way with a 5 per cent, issue. This has already caused increased activity among Colonials and other gilt-edged securities And county corporation stocks, while industrials show a strong undertone, though the volume of business is moderate. It is now generally anticipated that the bank rate will shortly be reduced to four per cent, as money is likely to become very easy, owing to large Government disbursements next week. Discount quotations in the open market have already fallen substantially in anticipation of the general easing of the monetary situation. Interest in the foreign exchange market centres chiefly in the mark, which has shown great appreciation during the last two days, closing at 1525. This is probably chiefly due to the Reparation Commission's acceptance of Bradbury’s plan for organising a committee of experts to examine the possibility of raising an international loan for Germany. WOOL OUTLOOK. Brokers’ reports on wool sales emphasise the increased demand from consuming centres, especially Germany, ■whose sp ; sners continue to purchase despite the high values of fine wools and the low value of the mark. Another good point is the diminution of B.A.W.R.A. stocks of merinos, of which, although there will be good supplies available in a few months, they do not exceed what w required at the present rate of consumption, apart from any possible demand from the United States. The only “bearish” influence on merinos is the fact that values are too high for the manufacturer, and some firms report the absence of forward business, suggesting that quieter times are likely in the near future. Home manufacturers are also hampered by old stocks, which often must be realised upon much below the cost of production. The position of crossbreds is much healthier. The huge supplies available preclude any sharp advance, but competition has developed considerably and * cheap values are beginning to create new markets. Messrs. H. Dawson and Co. say that the immediate future in the United States’ market is still nebulous. When the homegrown clip is cleared there may be some modification of the opposition to the Permanent Tariff Bill. It must be taken into account that only forty per cent, of the wool consumed in the United States ia grown there, so fairly extensive operations in foreign markets will be necessary when normal conditions obtain.

butter Market. The position of the butter market is that now butter is fetching lftss and may possibly go higher, as there is a shortage on* the spot, and prospective supplies are moderate until the Home and Continental reach their full swing in about a month henee. Retail prices of butter will again be raised next week to 1/10 or 2/- for beet colonial, and 1/8 for secondary sorts. The question arises whether consumers will pay these prices or revert to margarine, the manufacturers of which are pushing it to the utmost, with the result that its consumption has increased considerably during the last fortnight, particularly in districts where there ha unemployment, but the bulk of the middle classes, who are now enjoying plenty of butter after several years of enforced abstinence, will probably pay the increased prices for butter, in preferenc to returning to a substitute which is generally hated and only used because compelled. By the end of the month supplies will be more equal. The demand already for the home make ia increasing. Milk is so plentiful that the retail price has been reduced from fid to 5d a quart. TRADE EXPANSION. A report from official sources on general trade says there is a continuance of the indications as to the expansion of business. Though the actual volume of trade is moderate, the steadiness of the improvement causes a general belief that if the labor troubles are soon settled the tide will have turned and the outlook become brighter.