TRADE SUMMARY

Dominion, Volume 14, Issue 67, 13 December 1920, Page 5

TRADE SUMMARY

WOOL AND TEXTILE INDUSTRIES DEPRESSED FALL IN WHOLESALE PRICES OF COMMODITIES By Tele jriph-Prm AModatlon-OopyrieM (Uec. December 12, 5.5 p.m.; London, December n. After a dismal week the Stock Exchange improved somewhat vesterdar. There has been considerable forced selling, chiefly in industrials and oils This has abated during the past few days, and the offering has been fairly well absorbed, particularly in the investmenc sections. The news of the coalminers' increasing output lias, had a good effect, giving a more hopeful tone, but there is still a fear that further pressure to sell may be exerted before the weak positious are .entirely eliminated. Foreign Exchange Movements. The foreign Exchange movements have been mostly adverse to Britain, especially Scandinavian, owing to the slackening of imports from the United Kingdom, lhe severe decline in Eastern currencies is decidedly unfavourable to development, preventing the purchases on our markets which are desirable to relieve our flrade depression. Depression is still the outstanding feature of the wool and textile industries, .the new- orders barely suffice to keep the machinery running even for a short nme. Operation in the piece trade shows no improvement. Stocks continue to accumulate in spite of the drastic reduction iu prices. -

Wheat Markets Quiet. Business in wheat is very quiet, supplies exceeding the requirements of millers, who are holding off, expecliii" u further reduction. There have been a lew sales of Australian parcels, but the Australian committee is not offering much freight. The markets generally arc depressed, owing to an over-supply of tonnage. One exception is Australia, where the prices asked for January-May charters range from 105s. to 110s. per ton, though prompt steamers arc obisuuable at 100s. Wholesale and Retail Prices. The "Statist's" monthly index numbers of wholesale prices for commodities show a steady decline since April amounting to 15.9 per cent., but prices are still JGU per cem't.- above tho average of 1013. Tho "Statist" points out that since April tho cost to the consumer has been lowered on some lines, notably textiles, but in many cases retail prices have actually increased, while lihe general retail level 6hows no fall parallel with tho wholesale full. The present decline, which is duo to the restriction of banking credits, has been greatly helped by the marked' abstention of consumers. This may be regarded as a natural reaction, and is abnormal and largely artificial. Tho enhancement of money values, which Iwgan soon after tho armistice, will continue till prices have been reduced to a level which will make banking resources again sufficient for the requirements of trade. Heavy Stocks of Cheese.

The cheese market is dull, and supplies are very large. ' It is estimated that the Government holds 12,000 tons, while stocks of Canadian here and afLoau amount to 10,000 tons. There are also large stocks of home-made, consequently retailere are refusing Government cheese and selling the home-made cheaper. It is stated that retailers have refused 80 per cent, of the last! allotment.—,Aus,N.Z. Cable Assn.

IMPERIAL TRADE NOT BRIGHT CANADA AND NEW ZEALAND FINANCIALLY SOUND AUSTRALIA SUFFERING REACTION. (Eec. December 12, 5.5 p.m.) London, December©. Mr. F. G. Kellawyiy, in tho course of an intorview with a representative of the Australian Press Association, said Imperial trade was none too bright, notably in India and Australia. The former was suffering from the reduced exportaulon of a hundred million pounds weight of tea to Russia yearly. There was a good demand for British goods in Canada and New Zealand. Both these countries were able to buy, and both were able to pay, but both were holding back in anticipation of prices breaking, Australia was suffering.a financial roacttiou, but he was confident that when tho wheels of commerce were running smoothly, Britain would recover most, if not all, her lost trade, also her undisputed supremacy as a source of 6upply. Australia-had been importing goids much exceeding in value her exports to Britain, consequently there was a pronounced shortage of liquid funds in the Australian banks in London. Australian Credit Preserved. Referring to the wool position, Mr. Kellawav said that a fairly even flow of credit for Australia had been prcservfor the last few years by the British Government's promptness in paying for produce purchased from the Commonwealth. On wool appraised in Australia payments were made in London within a fortnight of the appraisement, and the long wait which would otherwise have intervened pending the arrival of documents against ifue shipment had thereby been avoided. .Wool was now being released from control, but- the proceeds of the first three , shipments in transit from Australia would not become available nt tho banks in London until the maikirity of the drafts drawn against them. Furthermore, the British Government had paid in advance tor wheat aud wool exported last July and August.

Mr. Kollaway concluded: "From statements made by the Commonwealth Treasury officials, it.' appears that the position created by (he above-mentioned economic factors are only temporary.: The position will right itself when, the present wool clip and the coming harvest are realised. The,present stoppage of credit, with the conscquentl heavy restriction on export business, is likely to endure until March, unlets the Commonwealth takes action in the meantime."—Aus.-N.Z. Cable Assn.