BRITISH TRADE.

Hokitika Guardian, 8 February 1922, Page 4

BRITISH TRADE.

FORTNIGHTLY RE VIE W

THE STOCK EXCHANGE.

LONDON, Fob. 4

The past week has se'enthe first .reactionary’ movement on the Stock Exjchange'this year, due largely to disquieting news from India and Egypt •which, has 1 caused some weakness in gilt-edges. Other factors were the reacting after the rush bf new issues, 6h' ! which heavy calls are falling due, and ’the fear'of difficulties connected with; tlie inariiVe reinsurance companies, .wliich niiiy lead to the realisations of Securities. The s'dt (jack luis ii'ot been long-lived, prices generally 1 closing well above the worst. It is Satisfactory to ’note that Colonial stocks have been 'little affected.' Another interesting Tact , is tlih’t the only gilt-edged " stock wliich did not decline’ was ‘lrish land stock.

' THE MONEY MARKET. Capital, issue statistics reveal the remarkable fact that new flotations in the United Kingdom during January far. exceeded the total for any month during the preceding' two 'years. The “Statist” gives the amount for January as £158,000,000 cbiiipafed 'with. £95,P00,000 in February, 1920, when the boom was at its’’highest. Of these £158,000,000 £151,000,000 wore'rapidly; oversubscribed, probably constituting a record and placing the underwriters in a verv happy position. FOREIGN EXCHANGES.

The chief feature of the foreign ox-, change market has been the rapid improvement in the dollar rate to 4.32, the highest point since August, 1919. This is attributed largely to the Senate passing the Bill for funding the Allies’ debts. A further appreciation of tlie .value of sterling is not improbable, butt the strike on the gold mines on the Rand may have an important effect. Tlie large gold shipments to the United States the last year or two have dene much to strengthen exchange and the, cessation of these shipments, even for a few weeks, may cause the rate to fall again.

THE WOOL TRADE. Describing the wool position a leading authority says that despite the remarkable strength of the market and the advance in-the raw material end of the trade, things are not altogether happy. The lull in new business doing during the last fortnight was not merely superficial and transient, but justified by the small volume of Home trade. The spurt in values has checked the slight revival in demand at the pieccgoods end and in general unsettleiiient of trade conditions. There is more than temporary nervousness th placing new orders, consequently manufacturers view the upward movement with great misgiving and fear the new basis will he difficult to maintain. Spinners would feel more confident if prices were governed less by raw material and bad more support from the weaving section. Fortunately the export yarn business continues good. There is little sign of any diminution of demand from the hosiery trade. There is a little more activity in the cloth trade for export to the Far East and America, which are showing an increasing interest, hut the general economic and political atmosphere is hardly yet favourable to more than a very gradual improvement.

DAIRY PRODUCE TRADE. Although trade in butter is slower this week owing to heavy Colonial arrivals and the decline in Danish, prospects are reported as favourable. Prices will fluctuate with Danish variations, but the consumption, continues good and is likely to remain so while prices are at about their present level. There is considerable comment regarding the disparity between Danish and New Zealand, the former being retailed at Is Sd a pound compared with New Zealand at Is 4d'. One of the chief reasons is the fact that Danish arrives regularly thrice weekly, assuring customers of a constant supply, whereas Now Zealand arrives at irregular intervals and slow and uncertain discharge prevents retailers getting their requirements regularly. One of the leading importers says that if he could assure retailers they would receive their usual quantities every week, New Zealand prices would he within a few shillings of Danish. The prospects for cheese are very promising. Canadian exports have practically ceased, and tlie stock in Loudon has been materially reduced. Stocks of New Zealand and Australian are none too plentiful and the deihahd is strong despite higher prices.’