STEADY RECOVERY.

Taranaki Daily News, 26 June 1922, Page 5

STEADY RECOVERY.

BRIGHT TRADE FEATURES. BUTTER UP AGAIN. FURTHER RISE LIKELY, By Telegraph.—Press Assn.—Copyright. Received June 24, 5.5 p.m. London, June 24. The improvement on the Stock Exchange which followed last week’s reduction in the bank rate proved only a flash in the pan, and a period of mild depression has set in. The investing public seems entirely apathetic, as is instanced by the poor result of the Indian loan issue, and the underwriters are still nursing large amounts of stock. Colonial issues show no improvement, New South Wales scrip being quoted at 105/- discount. The causes of the depression are apparently the uncertainty of the Irish and international political affairs, the chaotic state of I foreign exchanges, and the delay in the trade recovery, which, though considered to be sure, is certainly very slow. As the newspaper Economist points out, 'although the reduction in coal prices, which were recently lowered nine shillings a ton, shows that the demand for coal for industry is still very feeble, there is evidence that the recovery in trade is gradually gathering momentum. Raw cotton prices show an allround recovery of a farthing to a penny per pound. A better demand io noticeable in the piece goods trade with China, though .Indian business has not improved. Orders for pig-iron have been received from the United States and Germany, but the Home demand is quiet. The outlook for steel is better. Hides are firm, with a tendency to improve, and employment in the boot trade is better. Employment in the heavy woollen trade is better than at any period in the last two years, and machinery will run full time for several months. The chief demands come from Home houses, which are sending many small orders. Fair shipments are going to the Dominions, America and the Far East, and there arc signs of an improvement in Continents!

The apple market is showing an easier tendency, owing to plentiful supplies and soft fruits, especially strawberries, which are selling wholesale under 4d per lb and are retailing in the streets at 6d. Currants and cherries are also cheap. Fortunately, there are only three of Tasmanian apples still to arrive, so prices ought to be fairly maintained if the apples arrive in good condition. Most importers are far from satisfied with the Tasmanian apples received this season; there are many complaints that insufficient care is taken in packing and in maintaining the quality jf the fruit.

It is suggested in some quarters that shippers are less particular about quality since the underwriters have been given allrisk policies, and the question is again raised whether the underwriters will continue to grant these policies. It it certain they have lost heavily this season, and it would not be surprising if they reverted to the old practice, only granting total loss policies. Nothing definite has been decided, but some underwriters are discussing the matter with importers, who would welcome any steps likely to cause shippers to send better apples. The general opinion is that the quality of Tasmanian apples is much inferior to prewar parcels. This is attributed to the demoralising effect of the seasons when fruit was under control here, and when apples were so scarce that anything, however poor, was eagerly bought at the control price of 20s lOd per case. Butter continues to move upwards. Choicest New Zealand is quoted at 224 s to 2305, and Australian at 216 s to 2225. Prices will possibly go still higher, for the market is exceptionally bare of stocks, owing to the continuance of dry weather in Europe and a great diminuation in Irish supplies, owing to internal troubles. The small quantities of New Zealand and Australian butter arriving are sold before they are discharged, and there is strong competition for everything. France and Belgium continue keen buyers. The only possibility of a relapse is that the high retail price may check the demand. The multiple shops will raise the price to 2s 6d per lb on Monday.