BRITISH TRADE.

Hokitika Guardian, 18 October 1922, Page 3

BRITISH TRADE.

I FORTNIGHTLY REVIEW. THE STOCK EXCHANGE. LONDON October 14. The satisfactory conclusion of the Muclania Conference had a tonic influence on the Stock Exchange, ami business lias shown a welcome expansion in most directions. The fresh slump

in the mark and rumours of an approaching general election have been entirely counteracted by the good news from the Near East. Gilt edgeds have led the way in the recovery of prices, War Loan and Conversion Loan showing much strength. Industrial stocks , 1... 1 .. nrt+ nWli* rllKKfil’C

have also been active, notably rubbers cn the advances of tile raw material, and a satisfactory feature is the successful flotation of two good industrial issues. FOREIGN EXC’HANGUS. The violent fluctuations of the mark have overshadowed everything in the foreign exchange market. Tt is generally agreed that the main cause of the collapse is the uninterrupted activity of the printing presses. While they continue to turn out paper marks there can bo no hope of re'ovor.v. The German Government’s action to restrict dealings in foreign etfrrenoies was in , the nature of panic legislation. Financiers here ridicule it. The editor of the “Statist” writes: “Legislation of this character will not stop the fall in the value of the mark’either at home

or abroad, even if it can he successfully put into execution. Similar regulations have been put into operation in many countries since the war, hut in no instance have they achieved their object, except for a brief period. To the case of Germany the eagerness of the holders of marks to exchange them for foreign currency may have given nil additional momentum to the downward movement, hut the rent factor in the depreciation of the mark is the continued multiplication of units of currency due to the Government's inability to balance expenditure and tevonue. Strict enforcement of the new legislation may arrest the decline for a brief period and may even cause a temporary react inn. but these measures cannot provide a lasting remedy for Germany’s currency disorganisation. The on!v real remedy lies in balancing the Budget or covering the deficit by a loan. In default of this the fall

in the value of the mark abroad can only bo prevented by the suicidal plan of stopping foreign exchange transactions altogether.” THE WOOT. TRADE. The advance in wool prices at the London sale lias naturally given great strength to the Bradford tops market and those buyers who have been waiting in the hope of getting cheaper wool have been grievously disappointed. Spinners who have been holding off are m>\*. obliged to purchase fairly extensively. although they still complain they

cannot sell yarns at prices commensurate with the cost cf wool tops. A feature of the wool sales is the growing American demand for crossbreds, following nil the Tariff decision. This demand appears likely to continue to increase and the outlook for crossbreds is more favourable than it lips been for a long time past. DRIED FRUITS. The dried fruit market remains very firm for currants and sultanas, owing to limited supplies, but Valencias are arriving in fair quantities. Prices are rather easier end Australian agents have reduced lexins by 5s per cwt. Australian stocks are now practically cleared and no more arrivals are expected. Retail prices are very high, currants fetching 9d to 15d: sultanas Bid to 21d and Valencias 1 Id to 18d per lb. There is little hope of any reduction cf these prices, so the Christmas pudding will be somewhat of a luxury. THE METAL MARKET. The tin market shows a very firm "tone on a good statistical position and the demand continues unabated in America where consumers are buying heavily, there being a maud lor future shipment. I'lure are im.uatiuiis that producers ill the East are hi filing uii supplies for liettei prices. The demand lor lead lor hour.' i ensoul) tion and export is v..,l naint.i n ed. | ms; e U as regards Ires') supplies being very uncertain. DAIRY PRODUCE. The cheese inaiket appears very strung. Slocks in this country ore only about lull' these in October, 1921. The production in Canada this season is estimated to be thirty per cent below last season's, and there Is a definite shortage in the United States.