Finance and Trade.

Hokitika Guardian, 10 August 1922, Page 4

Finance and Trade.

FOREIGN EXCHANGES PROBLEM.

an INTERESTING REVIEW

LONDON, August 5. Under the combined influence of the approaching holidays, the slump in the mark, the erratic movements of the other exchanges, and the possibility of a Tureo-Greck rupture, the Stock Exchange had a very dull week, but nlj though gilt-edged securities have been flat, there has not been any serious fall ! in prices, nor much pressure to sell. Indeed, the markets closed with a disposition to take a more favourable view | of the outlook, anticipating good results from Monday’s meeting between ! M. Poincnire and Mr Lloyd George. ' The v iolent movements of the foreign j exchanges caused grave concern, the most disquieting factor being the uni- ’ formitv with which the currencies of the Allied and most Central European eoun- , tries depreciated. Commenting on this | state of affairs, the editor of the “StntI ist” writes: “The fluctuations are ! fundamentally due to the profligate | public finances of the Governments con--1 cerned We cannot hope for other than I progressive depreciation in the franc, lira? mark or other European currencies unfit the various Governments J equalise their revenues with their cx- ! penditures. and put an end once and ' for all to the printing press method of 1 ■ public finance. The question of mter- ! Allied indebtedness touches only the ' \ fringe of the. problem and the funda- - ' mental position of exchanges would ' not he altered even if a speedier settlc--1 ! meat ~f the question were now agreed

upon. j THE METALS MARKET. , The position in regard to non-ferrous metals is mere satisfactory than for a long time. Prices generally continue t o hat den. The improvement in the rc- ! mand for copper is particularly noticeable in the United .States, where the consumption exceeds that of any firewar jieriod. owing to the automobile in- ■ dustry and building trades absorbing large quantities for structural and . many other purposes, j A reduction in the visible supplies M I tin caused prices to rise to the level of , £2O a ton above tlie lowest touched tin - . year, but profit faking caused a pligb! ! relapse. American consumption has been, restricted by the railway and coal I strikes hut the tin plate mills are active, owing to the canning season. The future of tin depends largely on the J American labour situation, for, unless : the United States buys largely this j month, the possible supplies will mI crease, as Eastern shipments will be jheavy. j The ■ spelter position is very strong. stocks in the United States being I steadily absorbed. Tlie offerings of J Contin oitnl spelter are meagre, despite the fall "f the nu rk and ether Contin. eiital currencies. ■ A conference of steel inaiiufactuvei> decided to abandon the practice of fixing a minimum price. This means the establishment of a. free market. It is expect " 1 , that keen competition for orders and lower prices will follow. .41rendv the price of lxiiler plates has been red wed 20s a ton for home and 30s a ton for export. The reductions should st.imula'o the engineering and shipbuilding industries. dairy produce. Tlie I utter trade continues slow, for though the Australian season is practically over, and att end of the New Zealand arrivals, is within sight, we are still reaching plentiful supplies, especially of Punish, and the quantity available exceeds requirements. Retailers have reduced the price of the host colonial to 2s all). This niav stimulate ennsnmpt ion. The position of the cheese market shows nu improvement, with a better enquiry, especially for New Zealand, of which the condition is excellent. There is a large quantity of unsold cheese in Canada which makes buyers cautious, but the supplies of Canadian, United .States. Australian, and New Zealand cheese, here are AO per cent, less than last August, so the prospects are not unfavourable. WOOL PROSPECTS. Describing the wool outlook, H. Dawson and Co write: “Th© only tiling that can clearly and definitely he stated in these strange, erratic times is that the position in regard to raw material is better than for some time past. This is entirely due to the enormous consumption, loth on the Continent and at home. Although we had unprecedented.

ly large offerings during the year they have been fully absorbed and do not appear to have dulled the edge of the demand. An amazing and almost universal preference is still shown for fine goods, while the absorption of crossbred stock shows but a slight expansion. \ At present huge stocks of the coarser grades available in the B.A.W.R.A. s hands, act as a constant" deterrent to | any uplift and confidence. Nevertlic- 1 loss, consumption is being well maintained and the wool industry is taking somewhat larger quantities, and ultimately, low prices cannot fail to create a better demand. There is evidence everywhere of a strong desire to steady valus and prevent unreasonable advances in the finer grades. Any further spurt in value would he disastrous just now to the generally improving state of business throughout the industry. It is difficult, however, to see how merino values can he weakened during the next few months.”