British Trade Review.

Hokitika Guardian, 30 November 1921, Page 4

British Trade Review.

THE FINANCIAL OUTLOOK. LONDON. November 20. Tho stock markets have hecn overshadowed bv domestic, foreign and political considerations. The outlook was less hopeful in view of the possible „utconic of the Washington Conference. |,lit. despite this, and the lack of public interest, quotations >'ave ls-m fairly well maintained, gilt-edged securities generally showing a hardening tendency on the easier money conditions, though the upward trend in colonials has been checked by the small subscription to the South African loan, of which the underwriters expect to receive a. considerable proportion. Business in industrials is meagre, hut there are few alterations in prices, though armament securities are ilal as a result of the Washington proposals. The general slackness in business is causing members to agitate for the re-introduction of the pre-war system of fortnightly settlements. They consider the absence of speculative facilities responsible for the stagnation. There is a distinctly easier tone in the money market. Floating credits are abundant. Yesterday’s issue of Treasury hills was allotted at tlie unexpectedly low average rate of £.’! Us 2d per cent. The outstanding feature of the. foreign exchange market has been the weakness of the franc. The fluctuation of the Belgian and French rates have been of a feverish character, refleeting the general uneasiness felt regarding the German reparation payments. There has been considerable speculative selling of francs, and, as the general feeling, lias been somewhat pessimistic, even in France itself, there has boon little support to counteract the selling. It seems probable that the dollar °x(ilifinge will be influenced for some little time by the AVnshington Conference, and a higher rate than four dollars to the £ sterling cannot at present, he expected on purely economic, grounds. The decline in wool values at the London auctions had pnly a slight effect nil Bradford, where, it was expiated and completely discounted in advance. Now that operations have settled down and improved business is being done at Tuesday’s level, the tone at Bradford has improved.

Though top-makers are not operating extensivoly there is a good enquiry praetioally for all qualities of tops. Spinners, however, are following a waiting policy, pending some further light on the course of raw material values. A good effect was caused by the B. A.W.Tt. A.’s statement regarding the statistical positon of wool, showing that the consumption of merinos exceeds the production, and that, if the sales continue on the scale of the last three months, the supplies of merinos will he exhausted by July. The outlook in the metal markets generally continues to improve, especially for copper. The demand for electrolytic from the (Tnited States and (Termany, its principal consumers, has attained large proportions, causing a considerable reduction in the heavy stocks. Tf the present rate of consumption continues they should soon he brought down to a fairly normal level. Tt is unlikely that the mine production will be increased until the world outlook for oro is settled, and present stocks of electrolytic are greatly reduced.

Tin is meeting with a good demand from consumers in South Wales, America, and flermany. Stocks in the last are still large so that a big advance in price is not probable, but a gradual hardening is expected. There is a shortage of lead in the London market, due to the continent buying largely supplies which hitherto have been coming here. Producers in America and Mexico are holding for higher prices. Spanish shipments to the United Kingdom are on a reduced scale

Wheat freights continue on the down grade. The present rates are:—West Australia -Ids 6d; Victoria and South Austral?. 50s. These low rates are rendered possible by the fact that a fair number of steamers are taking coal to Colombo.

Tt is expected that the arrivals of butter to the end of the year will amount to 170,000 boxes of Australian and 240,000 boxes of New Zealand. Tll view of this large supply there is little prospect- of a maintenance at the present prices, but ther in an excellent demand for all good butter, and the decline in prices is not expected to be actions, at any rate not till the New Year.