BRITISH TRADE.

Hokitika Guardian, 14 December 1922, Page 4

BRITISH TRADE.

FORTNIGHTLY R EVIEW. LONDON STOCK EXCHANGE. LONDON, Dee 9. Dullness continues to prevail on the Stock Exchange', and despite the disbursement of Government dividends totalling £50,000,000 on December Ist., there has been no expansion of the volume of business. On the contrary all markets have been decidedly epiiet, and values of most gilt-edgeds weakened, notably the conversion load, of which there lias been heavy selling. Several reasons are given to account for this weakness in gilt-edgeds. One is that the Government’s plans for the alleviation of unemployment will entail large new issues guaranteed by the Government in tlie near future. Another reason is the present of a trading revival early in 1923 with a consequent withdrawal of 'money from gilt-'edge dls to industrials. A ijllird reason is the defeat of the Swiss capital levy proposals. When there seemed a prospect of these proposals being carried Swiss and other Continental buyers' invested largely in British Government stocks. Now that fear of the levy has passed away those people have not only ceased buying, hut in some eases have realised. When to these causes arc added uncertainty with regard to polities, reparations question, and international debts, it is hardly surprising that there lias been a sot back, especially when it i s remembered that during the year the values of Stock Exchange securities have appreciated by some £100,901),000.

FOREIGN EXC'iIANGUS. The steadier tendency of foreign excha.ngcs is partly attributable to the hope that to-day’s Conference of I’rcmiers may lend to a satisfactory settle meat of the reparations questions and an improvement of the political situation generally. The most satisfactory feature of the exchange market is the strength of the sterling in New York. Nobody seems able to give a definite reason for this improvement, but the “Investors’ Chronicle” says that probably the chief causes are the favourable feeling created in America by Britain’s prompt payment of interest on her debt, the absence of any great demand for dollars in connection with Kuropea purchases of American products, also the rise in American commodity prices which are now well above* those ruling in Britain, thus making America a better customer for Britain. THE BUTTER M AKKET. The* reduction in retail butter prices by 2d per lb resulted in some improvement in the demand and the market has now steadied. This is partly due to the receipt of cables that oxports from Queensland and Now South ; Wales will ho only fifty per cent of last year’s forwardings. Meantime supplies are large. Tlio quantity alloat on , December 6th from Australia. New . Zealand and the Argentine i s estimat-! ed at 9<X>.ooo lioxus compared with 440,000 in December, 1921. With this quantity in view buyers are exercising, a. cautious policy and only buying for , immediate requirements. i REYTA'AL IN COAL EXPORT. i There has been a remarkable revival in coal exports. British colli; lieu arc j producing a quantity almost equal eo • tlm pre-war volume* and the export trade* has expanded on almost parallel . lilies. Tha “Financial Times” says

that the a verge weekly output of collicries in 1913 was 5,520.000 tons and the* average weekly output last month was 5.4J3.000 tons. Thee estimated exports for 1922 amount to 64,000,090 tons. Coal is usually regarded as a reliable barometer of .international trade*. Anv revival in general trade brings a quickened demand for coal, so'that a large increase in the. export of com I indicates a. revival of international trade. There is intrust activity at coal shipping ports. At C arilili' there are forty steamers awaiting, loading berths. Similar' ennelitions prevail at Hull and Newcastle. Indouhtedly the improvement is partly dm to the American .strike, but the position is satisfactory as Britain is recovering ground lost in the worlds markets during stoppages in 1920-21. whereas America as a result oi the strike ha s little to export oniilg to the necessity of replenishing stocks and will not have a substantial surplus for some time.