BRITISH TRADE.

Taranaki Daily News, 13 June 1922, Page 5

BRITISH TRADE.

PROSPECTS BRIGHTER. BUTTERAND CHEESE. DEMAND EXCEEDS SUPPDY. By Telegraph.—Press Assn.—Copyright. London, June 10. Nervousness about Ireland and the uncertainty regarding the reparations questions have had a chilling effect upon the stock markets, and business all round has been dull. Gilt-edged stocks have especially been weak and lifeless, although prices are below the levels justified by the monetary position. Colonial stocks are also flat, mainly owing I to weakness in the recently floated 4£ per cent, loans of which the New South Wales issue is now quoted at 75s discount. It is generally held that the Colonial Governments over-estimated the improvement in the scale of credit and it is rumoured that the next colonial loan will be issued at 5 per cent. Another factor contributing to the weakness of gilt-edged securities is the fact that many people have been selling them in order to operate in home rails, in which there was considerable activity until this week. Also the underwriters of the recent unsuccessful colonial and foreign issues have been compelled to find the money to take up their liabilities and the large losses of insurance companies, notably over' the bullion in the steamer Egypt, have had a depressing effect. A feature of the foreign exchange market has been the strength of sterling in New York, where an optimistic feeling apparently exists regarding our financial position. There has also been a marked appreciation in the value of sterling in all the important European centres. f BUTTER AND CHEESE. The dry hot weather of the past’ month is restricting the output of British, Irish and Continental butter, and fears of another drought like that of last year has caused a sharp rise in prices'. Multiple s'hopowners and blenders have been buying colonial freely in order to ensure their supplies, and. as the result there is hardly a box available in Tooley Street. This week the Ballarat’s cargo of 40,566 boxes was sold before it was discharged and, though over 300,000 boxes of Australian and New Zealand butter are due to arrive in June there is likely to be insufficient to meet the demand for another week or so. Later on, too, there appears a probability that supplies will be short, for the total afloat from Australia and New Zealand is considerably below that for the corresponding period of 1921. The cheese market is strong, chiefly owing to Americans purchasing Canadian, largely in anticipation of the tariff ! on July 1 imposing a duty of 7 cents, ver pound. Tt is estimated that the Americans have bought an amount equal to three weeks’ Canadian shipments to Britain, which otherwise would have been shipped here and the hot weather is stimulating consumption. The dry weather is also proving beneficial to ‘ the apple trade. Supplies of strawberries and cherries are small and the conditions unsatisfactory. In a normal season mid-June sees our markets flooded with cheap French cherries. This year ,we are getting few and, of these, a large proportion is almost worthless. Fair quantities of Kentish and Hampshire strawberries are coming forward, but they are mostly small and tasteless, owing absence of rain. The demand for Australian apples is well maintained, all sound fruit selling well, but unfortunately brown heart is very prevalent, causing many rejections by purchasers. This is regarded in a most serious way by importers, some of whom say they will only make small advances next season in face of the possibilitly of a recurrence of this trouble. THE WOOL MARKET. It is expected that the wool sales, opening on Tuesday, will show little change from the May closing rates. Bullish factors are the expectation of a good United States demand and the probability of a rapid sale of the merino surplus' Against these must be placed the fact that Bradford wants lower prices. Top-makers are fairly well stocked against contracts and reports that topmaking sorts are cheaper in Australia make them cautious. The yarn trade remains active at moderately firm prices, with the general turnover ‘increasing. The piece goods trade is steadily improving. Heavy woollen trade shows marked improvement, especially in the export trade. Practically all the mills at Batley are running the full 48 hours week.