Finance and Trade.

Hokitika Guardian, 1 November 1922, Page 4

Finance and Trade.

THE UNSTABLE EXCHANGES. LONDON, Oct 28. The continued demoralisation of tho j mark, lire, and French and Belgian . francs is having a serious effect, not . oulv on the foreign exchange market, ( but" also on the Stock Exchange, and | worst of all on Great Britain’s export, trade. The depreciation of these currencies places Germany, Italy, France, and Belgium in a favourable position ] to compete with British exporters by , making it easier for these countries , to sell products abroad, hut more dilhcult to purchase from’Great Britain. Thus, the I'evival of British trade is ■ hindered, and similarly that of other Countries with comparatively stable currencies which depend for prosperity on tho maintenance of foreign trado. Tho decline on the French franc npP 'ai’s to be chiefly due to the growing appreciation of tho country’s serious financial position, and the more genoral recognition by the French peop e that little is to he hoped for from Germany, an unpleasant fact which atlas j, being acknowledged by French newspapers, who hitherto have blinded themselves to what other nations saw clearly. The collapse of the mark ap--1 nears momentarily to have been arrested bv the decision of the Hep illations Commission to proceed to Beilin and again study conditions, hut no real permanent improvement is likeh until practical measures have been adopted to stabilise toe maiK. ‘ With the. exchanges in this position it is not surprising that the ioi g section of the Stock Exchange has been seriously disturbed. Lnlge sa «• of foreign bonds, emanating >m Paris, caused a weakness alt 10,11,1 ' and although an improvement m tho franc caused a slight rally the markets are still depressed. Business on the Stock Exchange genciall> “ilSw fro,,, effect. ~t fcg oral election campaign, which i s m tu “AngDealings‘have been on a sum 1 scale, hut without any material dc,o though the gilt-edged market

;xpectol is.u, of an Indian loan «r M 01Vd.il! Kb „ ■ , tl.e future, a well-.nfor - oil fmnnVial writer says there is dnu lit the Stork iKs.-hansP £ • aware of a real revival of tiaue ">■» rs trade is likely to be considoiablt. V !,a , rise in money rates is probable. There is plenty of money available to finance tl.e trade