FINANCIAL NOTES
GERMANY'S PURCHASES OF COMMODITIES
GERMAN purchases of essential commodities, which have been a feature of commodity markets for several weeks, have now led to official action though it may be that the stable door has been locked too late. The orders have been large: there was a purchase of about 2,000 tons of copper last Friday and a large purchase of nickel ; rubber was heavily bought on the same day ; lead has recently been bought for Germany and shellac and other gums were heavily bought on Monday. It is not unusual for Germany to buy her commodities spasmodically as foreigri exchange becomes available, and there might have beea little comment had the orders not almost all been for immediate delivery. The buyers first bought commodities afloat or in store for delivery during this month and when supplies for August delivery were no longer available they bought for early September.
Thus it happens that the commodities which have recently been taken on German account must come either out of store in this country or out of ships which would otherwise shortly have arrived and discharged here. Stores of rubber and copper, at any rate, are not large. Copper stocks, at about 25,000 tons, are io,000 tons less than a year ago and, though not exceptional, are small in relation to the very high rate of consumption now prevailing in this country. Stocks of rubber, at just over 50,000 tons, are only half what they were a year ago. They are still equal to nearly six months' con- sumption of the British rubber-consuming industries, but British rubber stocks act as a reservoir for most of _Europe, and even in the event of war, no doubt, friendly countries would still have to be supplied from the United Kingdom stock.
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