Much interest has this week been taken in Japanese purchases of wheat in China, and apparently good deal has been done lately. Inquiry has been made whether this was for native consumption, but the general opinion is that the quantity taken has been for sale to Europe. The improvement in the political situation there, marked very largely by the appreciation of the franc rate on London during the past few days, has advanced the hope that Germany will be a buyer, and the settlement of the crisis has emphasized this belief. Accordingly it is generally understood that the large purchases of wheat recently made by Japan have been upon a semi-speculative basis, largely founded upon the prospect of Germany being able to resume her place in the world's commerce. At the same time it must not be forgotten that owing to their strong position in Manchuria the Japanese have made great advances in this particular business, and have for some time carried out most of the orders of the British Government Wheat Commission which has not only supplied the British Isles but other countries, including Egypt, as well.
Apart altogether from this question of wheat purchases, the export situation has brightened considerably during the last week. Europe has been buying, although in rather small quantities, ground nuts, sesamum seed and beans, Italy, whose rate of exchange has shown a distinct improvement lately, being well in the market. The American trade in goatskins, which had fallen off for some weeks, has again revived, and from that country there is business in furs, That it is possible to do a trade in luxuries (such as furs) is taken as an indication that business generally is on an improved basis.
Text read from the printed page and cleaned; old type leaves the occasional error.