BRITISH TRADE

Dominion, Volume 13, Issue 247, 13 July 1920, Page 5

BRITISH TRADE

SLACKENING OFF IN NEW BUSINESS FALL IN WHOLESALE! PRICES \ By Telegraph-Press ABsoointlon-Oopyritfit : London, July VI. Though the Board of Trade returns for Juno aii) less favourable than in, Hay, the totals for the half-year are quoted to show tie progress made in restoring the trade balance. But the question i 6 asked whether the progress is rapid enough. An outstanding fea- ' hire is the continued slackening, off in new business. This applies in varying degrees in Manchester, Bradford, Birmingham, Sheffield, Nottingham, and Middlesbrough. Buyers are satisfying merely their immediate requirements, believing that prices havo not reached bottom. A mere serious feature is the further cancellations of Chinese and Indian orders, through the depreciation of the silver currencies, affecting especiallythe Lancashire piece goods trade. Extravagant purchasing by the mills in the Shorn period aggravates the situation in Lancashire, but the authorities there, aa in other industries, assort that a slump in tho ordinary sense is impossible, owing to tho high costs of raw material and labour, and also the practical absence of manufacturers' stocks. There has been no over-production, and it is contended that the world's demands are far from satisfied. A revival is not anticipated lwfore the autumn if industrial troubles, notably nmonj tho wool operatives and miners, are averted. Tramp steamer freights continue to full. An important fnctor is the United States embargo in coal exports, which immediately affects livo hundred vessels. Time charters have declined about 15 per cent, in threo welts. Almost the only bright spot in freights is the inquiry for coal tonnage from Newcastle, New South Wales, at 1455. + o the Mediter- . ranean and 1705.' to 1755. to. Scandinavia. ' Shipowners and shipbuilders are alarmed at tho heavy increase' in the cost of new tonnage, and also at the effect of tho Geuca Conference decisions. v It is reported that many orders have- been cancolled. The "Economist" says that the monthly index figures of wholesale prices in June show the largest fall for any month for some years, especially in textiles; but cereals and meat reached record 'high figures. A feature of the produce, markets in the last fortnißht was the slackness in fibres, except flax; and the stagnation in. tallow is said in trade circles lo be almost unprecedented. The nonferrous iueta;!s trade believes prices are finding tv 6cundcr basis' owing- to. the elimination of the speculative element and the transference of metals to stronger hands. At the same time fluctuations, havo caused buyers to remain cautious. The "Metal Bulletin" considers that the worst stage of deflation has passed, though the time is not ripo for a sustained upward move, The dailv supplies of English meat at Smilhfield'continue to be large, and the prices are now littie above the control level; and there is a corresponding shrinkage in the consumption of imported meat.—Aus.-N.Z. Cable Assn. :