BRITISH TRADE.

Hokitika Guardian, 26 August 1921, Page 4

BRITISH TRADE.

LONDON, Aug. 20 The Stock Exchange lias had a severe tit of depression in the last few days . the gilt-edged market suffering from the unsatisfactory position of the national finances and the indefinite outlook of Irish affairs, and declines are apparent in most securities. . One bright spot is the colonial corporation market, where a fair demand is apparent at late prices, industrial shares have been influenced by the fact that many companies either passed or reduced dividends, consequently many share, are marked down. A distinct weakness developed wherever selling pressure was exercised. Oils have been particularlv bad, owing to an avalanche of selling.' There has been a. sharp rebound from the lowest level, but the market remains extremely nervous. FOREIGN EXCHANGES. The exchange position so far as Aus- i tralia is concerned shaft s little change. | There seems no probability of realise- j tion of the fears entertained in many quarters that the autumn would see a recurrence of the serious stringency which marked the autumn of 1020. | The banks certainly are not offering | anything like the old time facilities; indeed, they are doing all possible to discourage exports, except ol necessities, but this policy is working well. The position is improving steadily, and confidence is returning. This is greatly helped by shipments of wheat, wool and butter, which all are realising good prices. If these are maintained, it seems there will be no difficulty in weathering the awkward autumn period which caused so much anxiety last year. In connection with the exchange question, it is interesting to note the “Financial Times’s” criticism of Air Hughes’s address to hankers. Air Hughes referred to Australia’s holding gold bullion amounting to over 7(1 per cent of outstanding notes. The "Financial Times” considers this backing far beyond what i ; necessary. Air Hughes dealt on the value of Australia as a consumer of British exports. Iho “Financial Times” asks why, then, did ) Air Hughes refuse to release some of I this superfluous gold a year ago when r British shipments to Australia were held up by the deadlock in connection with exchange. Although present trade conditions, except with Germany and other countries which are specially favoured by the exchange position, afford little ground for optimism, many financial authorities believe a recovery from depression is not far distant. The “Statist” says there are the following unmistakable indien'tions: —“Universal absence of financial stringency after one of the severest, periods of financial strain which has ever been witnessed; a decline in money rates; improved speculative sentiment, in Japan and the United States, and a reaction in commodity prices.” Those indications strengthen the belief that business conditions are on the eve of recovery from the recent depression,' and that the coming months are likely to bring more hopeful prospects. GERAIANY’S TRADE BOOM. The trade boom in Germany continues. The condition of all industries except the chemicals, machine and'shipbuilding branches are extremely good, the iron and steel trades particularly. Bar iron and wire are very busy. The textile branches are enjoying a sudden and quickly increasing prosperity. Clothing, tailoring, millinery and underwear industries have more work than they can execute. AI nn.v will he unable to fulfil orders owing to materials not being available. Scandinavia and Holland have sent large orders for woollens to America, ordering knitted goods. The Yorkshire newspapers state I'at German manufacturers are actually ling to wholesale export houses in England both men’s and women's w. r fabrics at less than they can he mr.ie in Bradford to-day. They are e'en offering many months of open credit to induce business. THE FREIGHT A 1 AUK FT. A reduction in the cost of hunker coals from about 41s to 2tis lor Tyics, and 30s for South Wales, caused weakening in wheat freights. Seme owners are sending and are willing to send steamers in ballast, hoping -or further reductions in hunkers to mm 1c them to run profitably, so rates docl ne from 7ns to 70s per ton til which p he there were several fixtures after ..‘ls !'d and 72s (id had been paid. Charter rs have now filled lequiremems, ami ' ill not consider anything over (ins.