BRITISH TRADE.

Hokitika Guardian, 15 December 1920, Page 3

BRITISH TRADE.

FORTNIGHTLY SUMMARY. THE STOCK EXCHANGE. LONDON, Dec Ilf After a dismal week the Stock Exchange improved somewhat yesterday. There had been considerable forced selling, chiefly in industrial oils. This has abated in the past few days and offerings Were fairly well absorbed,' particularly in the investment sections. The news that the coni miners are increasing their output had a good effect, giving a more hopeful tone, but there is still a fear that further pressure to sell may be exerted before weak positions are entirely eliminated. FOREIGN EXCHANGE.

Foreign exchange movements have been mostly adverse to Britain, especially Scandinavian, owing to the slackening of imports from the United Kingdom. The severe decline in Eastern currencies is decidedly unfavourable to development, preventing purchase on our markets which are desirable to relieve our trade depression. THE WOOL TRADE.

Depression is still the outstanding feature of wool and textile industries. New orders barely suffice to koep machinery running even for short time operation. The piece trade shows no irn provement. Stocks continue to accumulate in spite of a drastic reduction in prices. THE WHEAT MARKET. Business in wheat is very (|uiet, supplies exceeding the requirements of millers, who are holding off expecting a further reduction. There have been a few sales in Australian parcels, but the Australian Committee is not offering muqh. * FREIGHT MARKETS. Freight markets generally are depressed owing to over-supply of tonnage. The one exception is Australian, for which destination the price asked for JnnuarvMay charters ranges from 105 s to 110 s per ton though prompt steamers aro obtainable at 100 s. DECLINE IN PRICES.

The “Statist” monthly index numbers of wholesale prices of commodities show a steady decline since April amounting to 15.9 per cent., but prices aro still 163 per cent, above the average of 1913. The “Statist” points out that since April 'the cost to the consumer has been lowered in some lines, notably textiles, but in many cases the detail prices have actually increased, while the general retail level shows no fall parallel with the wholesale fall. Tho present decline is due to the restriction of banking credits, greatly helped by the marked abstention of consumers. This may bo regarded as a,, neutral restriction from the abnormal and largely artificial enhancement of money values which began soon after tho Armistice. It will continue till prices are reduced to a level which will make banking resources again sufficient for the requirements of trade. 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 afloat amount to 10,000 tons. There are also larsre stocks of home-made, consequently retailers aro refusing Government cheese and selling home-made cheaper. It is stated that the retailers refused 80 per cent of the last allotment.