WOOL AND TEXTILES

Hawke's Bay Herald-Tribune, Issue 71, 10 April 1937, Page 18

WOOL AND TEXTILES

Substaniial Orders for the Continent 1936 TRADE REVIEWED Following the active Christmas season, the Contlnental textile year of 1930 closed with acce^table results, ■ and gave every promise of satisfactory industrial expectations 'for tho eoming months. Substantial orders have bees booked in practically all sections oi manufaeture. Stimulated by the impetus arlsing from the "four-year-plan," textile demand in Germany showed no abatement the necessity of replenishing diminished stock giving the trade a special filip, Official encouragement increasing domestic production of the artificial raw, material and furthering itg nse hai been of gi-eat service to the manufac-. turer, irrespective of the benefit derived from extended industrial commissions rceived to meet military needsJ which proved to he of particular assis* tance in disposing of accumulated medium-quality Crossbred wool, Notwithstanding last year's market diffieulties manifest in the aqqnisition oi the raw material, the even progress of industrial employment continued without serious interruption. However, financial impediments stood in the way of acquiring adequate sterling, and with the foreign exchange transfer. trouble tended to rednce intemational trade, On the qther hand, German export—. handicapped by not having abandoned the gold currency— ig slowly recovering, asaisted by reciprocal meaeures and extended trading agreements. Oompensation Brokers, Llmited, new Iy established. in London, has evoked much interest on the Continent. It fcooperates with several influential English banks in order to help forward intemational compensatory transactions, By aid of this institutlon, Germany expects to be in a more favourable position to satisfy her oyerseas raw material requirements. , Much attention has been" glven to domestic price formation. The N.S.D.A.P. Oabinet, adopting the^prlnciple o£ keep* ing German values moderate, flnds interior economic restriction more valnable than allowing qnesitionable raW material prlce-raising to have free scope and interfere with natural trade development. It is asserted that the undue advance of wool Talues, for* lnstance, so often f ollowed by market reaction, as a rule has done little beyond disturbing trade at the time and nltimately proving to have been of no lasting value. The high priee of raw wool at present, although of temporary individual bveneflt, will assnredly extend the tnrnover of 'cheaper synthetie substifutes, and possibly occasion difficulty in meet* ing the resulting mixed fibre eompetw tion. The new arrangemenTs "of the Beicb with South Africa and Argentina, 'designed to xegulate financial matters and advanced reciprocal trade, have generated quiet optimism regarding this year's oversea raw supply. Criticism has been expressed o£ the alleged undue proportions German financial obligations have' reaehed in con* sequence of the ontlay on national nnemployment, -government and municipal expenditure, defence restitution measures, armaments, and so forth. On examination, it will be found thdt tha* Third Beich's national indebtedness has hardly altered since 1928, although commerce has had to battle with fluctuatieg markets. The Berlin money market is liquid and cheerful. Day-by-day rates quota 3 5-8 per cent., priyate discount 3 per cent. and Eeichsbank rate at 4 per cent. On the stock exchangei shares have fluctuated slightly since the New Year. Textile dividends, so fai declared, show little alteration on lasi year's results, and business reports eo» tinue promising. . — •: