FINANCE AND TRADE.

Hokitika Guardian, 17 November 1921, Page 4

FINANCE AND TRADE.

BRITISH CONDITIONS REVIEWED. IUSTTIAMAN ANL N.Z. CABLE ASSOCIATION. I LONDON, November 12. Since tlio reduction ot the Bank rate, the Stock Uxchangv has been much more hopeful than for a long time with a general U'riing of optimism. There has not been any marked revival in tin* volume of business, but an improved tone has manifested itself in the absence of liquidations and an improvement, in pi kes in all depai fluents. Contributing faetnrs to the eheeilidu(‘ss are the --.iitisfaetory Board oi dradc returns, the improved values ol rubber * Mild othoi commodities, and the more ; hopeful outlook in Ireland, hut the principal cause is the reduction oi tie* Bank rate, which by inducing a reduc- ; trim of the deposit rates has stimulated investment in Stock Kxchange securities. thus hardening prices, particularly for gilt-edged securities. Some recent colonial issues are still at a discount but are expected shortly In he at 1 premium. The lluetnations on the German exchange have been the dominating feature of the money market. 'lhe , ! Austrian hud Roumanian exchanges j have participated, both marking iresh I low records. The Krcnch and Belgian , exchanges have felt the ejlect oi the violent movements, ami the downward course of the rupee is also ittributi l . to the slump of the mark, which must seriously curtail Indian exports to Germany. The seriousness of- the British trsuh* slump during the last two years : | shown by the Board of Trade return <f bankruptcies. In 1920 they nuiub / ' , cd 201 G. the liabilities bring * and the assets C:I.0-IS.99:i. Crcditms. lost .L'-rifi 4 7,G78, compared with £1.071. 802 in 1010. During the current year there have been a marked in«*re:»se in b:inkrupteies. It is anti<*ij aied the i. - tal for 1921 will be equal to tint of 101-1. which was 10Id. involving a loss ' of £8,1.m,G7G. j Bradford wool spinners report a lair iitnniiiv Till' dlrwiw n-nl isM t.ioil oi the

many. The seriousness of- the British trad’* slump during the last two years ! shown by the Board of Trade return <f bankruptcies. In 1020 they nuiub / ' , cd 201 G. the liabilities being £f).Bod,.‘U)S, and the assets t:1.0-IS.00B. Credit ms. lost .£-‘>,.>47,078, compared with £1.071. 802 in 1010. During the current year there have been a marked inej-ease in K:inkrupteies. It is antioijnied the i<‘tal for 1021 will be equal to tint of 101-1. which was 10Id. involving a loss of £8,1.m,G7G. Bradford wool spinners report a tail* enquiry. The demoralisation of the mark has practically stopped business with Germany, hut there is a goo! trade with other Continental markets and America. A satisfactory feat ere of the wool trade is tin* fact that ports of woollen cloths for October amounted to 7.0‘>8.000 square yards, which compares favourably ‘ih r.did.lHK) expot ted in nelnher. M’i v. when trade was at its normal level. There has h**cn a steady increase sin* “ June. There is good reason to brijey the holUm of the slump Ims be< n reached. It is graiilying to note that the improved |osition is largely due to ihereased Trade within the Umpire, October expoits t :l Australia being. 700,000 square yards, compared with 289,000 in duly. Holland. Belgium, and Flame also contributed to the im-

provement The cold weather during the la*-! few days has stimulated the donned lor beef, causing a slight improvement in prices, hut otherwise the meat m:?»kets are vor v depressed. Wholesale values are now about 2d per cent, above pre-war prices. With referen o to the Australian meat exporters* request for British preferential iiealment, one of the largest importers sn\s lie sees little prospect of any preference being given. If a duty is imposed oil Argentine meat, the immediate results would'be to raise the price to the consumer. It is doubtful if any Government or political) would the risk of proposing a step whi L -h would raise a tremendous outcry about taxing the working" man's food. It is equally unlikely that the Government would grant a subsidy on Australian importation with national finances in the position disclosed by the Chancellor of the Fxehcquer last' Wednesday. The importer concluded that the best way tor Australia to meet Argentine competition is to get freezing charges and freight reduced. Prospects for the metal markets seem favourable. There are indications of a revival iu the tinplate industry with considerable activity in the \ew Year and an excellent demand for tin is anticipated The copper outlook is also cheerful. The demand from America is well maintained. Tin* prevailing opinion there* is that owing to the curtailment oi production, producers are in an excellent position for maintaining or reducing prices. There may he a shortage' ol refined before six months, have passed.