FINANCE AND TRADE.

Hokitika Guardian, 24 September 1921, Page 1

FINAN CE AND TRADE.

ENGLISH REVIEW. LONDON. Sept. I. The outstanding l lenture of the •'L u'k Exchange Ims been the limitless - I Killed..ed securities which even the tinsatisfactory Irish development has fallen to all'eet. Tho chief cause fo, tflirmm'ss is apparently dm- to -.lie „,i,\ al of tho selling pressure which ..rcvioiisly existed and tlm alisorption ‘,f y I,hi. Its ol Government issues which hav ho u hanging ■ ver the market. Instead, tlwre is now : pet-si-t.ni buying pressure in the irwsti„. nis market. Another factor .* the .-‘..11H-Iv »■!!>>’ romlit ion* prevailin'! in the money market, as instance of liidi three months’ Treasury ’ls lien- placed yesterday at an average ~;,lc of Si is lid per . enl. comparcl nth |]!N ltd on April —lst. .In marked . 011trasl. is the dullness in the more speculative sections, wlmrein prices arc nio-t----|v tcmlino downward. Tin- mild *lu<-t it;i Hons in Toroign exchanges are mainly due to the heavy slump of the German mark, the cause of which is dilhcult to ascertain. In some ipiarters it

is attributed to the heavy reparations payments, and. it is suggested that Germany may he trying to bring

:1 ! nut a complete collapse ol its currency. hoping thereby to secure a revision of the linnncinl terms of the treaty. On the other hand it. is state’ that leading German hankers have given flic Government assurances as to the provision nT the funds neees-ary for next reparation payment on Nov. loth.

A well-known wool authority says the severe financial pressure cnnlinues tn dominate the situation in the manufacturing and merehanting sections.

There lately lias heen more enquiry for export, bn, orders have heen principally filled from stock. The home D’.ado

is ill the unfortunate position of being unable to Ft lid a market in America owing to the tarilf. and is also snl'er-

i n.. acutely from European exchange

posit ion. Nevertheless, conditions are less, adverse to an improvement in business and there arc encouraging signs of a gradual relief from the more depressing features of the slump. I't'ogross is extremely slow, hut a. gradual adjustment is being made in the direction ol reduced costs of production and for holder wages at home and on the

j coni incut which, together, will tend to ! lessen tin- existing disparity between

: cunt inental and home costs. I A wave of depression is passing over Ihe provision trade. Butter, cheese, baeon. lard and ~ggs have all slumped, •ami in spile of the considerable fall in j any of these commodities. The posii (ion regarding butter, is particularly I unsatisfactory. The optimistic Iceling prevalent, among traders two months ago has disappeared, and been ro-

plated tiy doubt :unl nervousness. 'M.my imjiorlits consider tip. present posit ion is largely duo to tlic muddle--11id• ■l l policy of I lie Government in tlic li:iiicllin>r of its storks. After hurried lv rushing tlic price up in July, i.'ie Government now is inking nil i‘(iii.'dly hurried down word r nurse. When jirices were raised ninny retailers anticipating a further rise, purchased l heavily. The public is refusing to nay the high prices, nnd retailers are now saddled with large stocks on which ithoir loss is increased by each reduc- ; tio;> in Government prices, instead of j the Government storks being steadily ; cleared there are still thirty thousand , tons on band Tlic prospeet of moving j is seems remote unless prices are lur- . tlier reduced. Consumers show an in- - creasing disinclination to pay present h : ph prices, nnd though best New Zealand is obtainable at 2s 3d per lb., consumption is small, housewives taking margarine, of which host, brands are obtainable at Is 2d per lb. The newspapers are carrying on a campaign against the high food prices, alleging that, retailers are making excessive profits. The campaign undnnbtlv is influencing the public.