BRITISH TRADE.

Hokitika Guardian, 21 September 1922, Page 4

BRITISH TRADE.

FORTNIGHTLY REVIEW. I THE ST6CK EXCHANGE. j LONDON, Sept. 1(1. Events fh the Near East and the breakdown of the Bt Igo-German reparations negotiations have caused some depression in the Stock Exchange and there has been a considerable falling of gilt-edged securities. Sales were not entirely due to international and political apprehensions but partly to the maturing of a great number of options entered into at the end of June. It is also suggested in some quarters that big speculators who Sold out ot industrials two years ago and purchased gilt-edgeds are how selling the latter in order to re-buy leading industrial's, owing to signs of a trade revival. Another contributory factor is uhetsin'ess regarding a possible advance in the Bank Rate.

The general position on the Stock Exchange is, as the “Statist” says, peculiarly difficult to analyse. On the whole the tendency appears to he downward in the ease of investment stocks and upwards in the speculative division, but it is not definitely marked in either case. If trade improves to afiy extent money will flow from the investment markets to trade channels and high class investment quotations will he adversely affected. The dangei that investment values will recede causes buyers to hold off, while the risk that trade will not recover makes them chary of supporting the more speculative sections. FOREIGN EXCHANGES.

There has been a slight improvement in foreign exchanges following the report that Herr Havenstein (chairman of the Reichsbank) is arranging with the Bank of England to guarantee German bills. Tile recent repreeinlion of American exchange is explained by a financial export to he due mainly to the seasonal preparations now being made by this country and the Continent for financing their purchases of American produce, principally cotton and wheat. This, of course, means a larger demand for dollars which are nearly all bought in this market and also means sales of francs, lire and other currencies in order to seeUre tlie necessary dollars.

TRADE AND EMPLOYMENT. According to the Ministry of Labour’s “Gazette” employment during August remained had. and the improvement which has been in progress since the beginning of the year was not maintained at the same rate as in previous months. There is a marked improvement. however, in the coalmining industry and some improvement in the pig iron industry and iron and sloe; manufactures generally. The ]>crorntage of unemployed at the end ol August among trade unions making returns was 14.4 compared with 14.(5 at the end of July and 1(5.3 ill August, 1921. .

MOVEMENT OF PRICES. The average level of the retail prices of commodities at September 1 was 79 per cent, above July, 1914, compared with 81.1 per cent on August 1. The decrease is mainly due to the tall in the price of potatoes. THE WOOL POSITION.

Commenting ou the wool position a well-known authority says that topmakers in most cases arc adopting e protective policy. The volume ot business is not large, as buyers, in view of the near approach of the colonial season, are inclined to await developments! Spinners continue well employed and are finding more interest on domestic account, but they are not obtaining prices commensurate with the quotations of tops and raw material, and with each advance new business becomes increasingly difficult.

Conditions in the manufacturing sections show slow but satisfactory progress, increased orders on some accounts being a welcome feature, and the situation is generally sound and the demand extending. The fact- that there is a political and economic crisis on the Continent has had little elicit on our wool -market but it coincided with an appreciable advance in values. The strength of the raw material position has improved conditions in consuming centres. The Continental demand shows no abatement. .Machinery everywhere is well employed. Ihe Gorman textile trade runtime's prosperous and seems able to finance all necessary raw material. The outlook for raw material presents encouraging features and a strong opening of the colonial season is generally aiiticivpated. The position of merinoes and fine crossbreds is gradually being .strengthened by a steady expansion of consumption. Anxiety regarding the future German demand is hardly so acute. The possibility of an early settlement of the American Tariff foreshadows an increased demand oil United States account.