BRITISH TRADE

Hokitika Guardian, 26 January 1921, Page 4

BRITISH TRADE

A general review. BY TELEGRAPH —PRESS ASSN., COPYRIGHT. I AUSTRALIAN AND N.Z. CABLE ASSOCIATION. LONDON, -Jan 22. The Stock Exchange maintains a clmerful tone, with a certain amount of 1 buoyancy. The business has been chiefly in first-class investment stocks, and its volume has increased considerably. The demands for investment securities are due largely to the expectation of cheaper money. Depositors have

been withdrawing money from the banks in order to purchase stocks at the recent low level, at which they show a „ood ,-etnrn on the capital outlay with the prospect of a considerable increase in value if the bank rate falls. There has been much talk of an early reduc- . tion of the bank rate, especially on the stock exchange, but good authorities do I not anticipate a reduction before the I end of the financial year (March 31). In 1 jinv case, it is improbable that monetary conditions will change materially until the deflation movement has terminated, and a revival of trade is at band. The strength of the gilt-edged section of the Stock Exchange is illustrated by the fact that prices have ad-vtn-ed 'despite the competition ot a new issue of a £15,000,000 local loan at 3 per cent, with stock at £SO. This has been largely oversubscribed, whereas of n previous issue a few months ago, 70 per cent, was left on the under-writers’ hands. Foreign exchange movements continue satisfactory, the tendency being for all exchanges'to move towards normality. The American, llelgian, Italian, and derm an exchanges • j r e all recovering the German mark being now ‘230. ' AUSTRAL! AN REM ITT A NOES.

The difficulty of obtaining remittances from Australia continues to pro. voke much unfavourable comment. 'I he “.Money Market Review” says: ‘‘The Australian government is largely responsible. When the Australians were receiving lare sums from Home for t heir commodities, they were encouraged to embark on all sorts of unjustifiable extravagances and immediately after the war merchants imported large quantities of luxuries instead of first, re-stock-ing with necessaries like pottery and hardware, with the result that the Australian shops are replete with goods that nobody can aflord to buy, while urgently needed goods cannot be brought into the country because there is no colonial money in London to pay for them. FREIGHTS, WIIHAT AM) WOOL. The freight markets continue to droop and many owners in the Eastern trade are laying up their steamers. Although hunker coal at the Tyne has fallen from 75s to 47s (id in a. month, the owners say they still cannot make ends meet. The Australian steamer fixtures for wheat, for March and April are 80s and 77s 6d.

The wool market shows a better tone all round. The lowering of the Government reserves is having a beneficial effect. The London woolbrokers’ committee reports that the closing prices at the Government sales for better .claws merinos were 20 per cent., for other merinos 15 per cent., and for fine and medium crossbreds 10 to 15 per cent, below the December prices. At Bradford the inquiry for tops is improving, and merino quotations are firmer. Users’ stocks are very low, the users having delayed buying till the last moment. Yarns are very quiet, and unchanged. Piece goods are dull. There are huge stocks to liquidate, which constitutes the main trouble in the trade 1 . There is increased activity amongst the United States wool-buyers, but it is due to speculation in expectation of a new tariff, rather than to manufacturers’ demands. FRUIT AND DAIRY PRODUCE. Tlie knowledge that Australia Pope* to ship 1,250,000 cases of apples, and New Zealand 100,000 cases is causing the ll fruit trade anxiety. . Apparently the United States and Canadian supplies will not he anything like exhausted when the Australasian supplies commence to arrive. It is reported that the Americans are holding a large quantity of the best quality apples to reach England in May. At present supplies are ample, excellent apples retailing at fid a lb.

The butter market is steadily declining, and supplies are well maintained. The Food Controller announces a reduction of Id in the retail prices to 3s beginning in February, and the removal of rationing. Tlie expectation is that prices will be further reduced before long, as heavy quantities of Australian and New Zealand butter are expected to arrive in April.