British Trade Outlook.

Hokitika Guardian, 17 October 1921, Page 3

British Trade Outlook.

SLOW REVIVAL of business. LONDON, Oct. 14. The fin'nifcinl editor of “The Times,” commenting oh tlu> revenue figures for the past -six months, says that with a decrease already of £163,000,000 tike 1 prospect of .fulfilling the Budget estimate of (i decrease of £200,000,000 for the whole year has faded away. The expenditure was £698,000,000/ a decrease of .£43,000,000 eomiUirurf with tho same period last. year. The floating debt at the end of September was £1,320,000,000, all increase of £45,000, 000 from ALarcli 31st.

Next quarter, heavy outlays fo r railways, agriculture’, and unemployment will swell the extraordinary expenditure bv aboht £60,000,000 and fresh inflation will h 0 inevitable. Consequently the Bank of England has flat followed the example of the New A r ork Kesei-ve Batik in reducing tho discount rate to 5 per cent. Hitherto tho finaii. fiat policies of New York and London liave followed parallel courses. Lflfft week the Treasury sold £60,000,000 worth of hills under 4 per cent., and this week the rate is nearly 41 per eoiii.

There lias been considornble progress in the liquidation of frozen credits, hut the trade revival is slow, though the financial activity is distinctly better. The South African £5,000.000 loan was covered in 24 hours, and the next IDan'i expected from Now' South Males are likely to lie underwritten next week. India has been buying wheat from the United States for the first, time for years, having hitherto shipped supplies from Australia when local wheat was scarce. The Board of Trade is making arrangements to enable the spelter itotks ill South Wales and England to obtain znie eniicentrntoi) in order to resume operations. “The Times” index of price.) f f n r wholesale commodities is 180.8, or 80.8 above 1913. Last month’s fall of three points was entirely due to cheaper food. For i’tiliher and certain other goods the prices are Veil Rev. encouraging buying.

I lie lolly ot recapitalising old eoilljiidiieS /It inflated boom values is becoming more app’are’nt. Several industrial companies limited in iff tf) find 1920, have not paid dividends, rlii (l ili sonic eases are being reconstituted. The city editor states that the first payment was made yesterday on account. of £87.000,000 due from Australia to Britain. The instalment amounted to £3,000,000, covering interest and sinking fund. Apart from this, the balance of the total war debt of £ 400,000,000 will be enlirely raised in Australia, which has definitely shouldered and is meeting th(> full service of its whole will' delft, in striking contrast tu most KtiropG’iH combatants. Thi« factor in exchange must entail larger experts from the (’oiiimnnwealth. Fortunately the prospects art’ f.'M'oui'tilile, tiie wheat outlook being excel-' lent; .