BRITISH TRADE.

Hokitika Guardian, 12 July 1923, Page 4

BRITISH TRADE.

THE BANK RATE. LONDON. July 7. The week’s outstanding event was the raising of the bank rate. While this came suddenly, it was not wholly unexpected in Stock .Exchange on alters, and it is accepted ns a business truism here that a four per cent bank rate does not harm trade at first. Therefore, the increase was viewed with ccjuiuiimity as removing a source of uncertainty, hut yesterday the pessimists stressed the probability of a further rise to five percent, which had an unsettling effect upon first tails in gilt-edged values, which the altered rate produced on Thursday. There is a strong reason for believing that the depression in the gilt-edged market is also duo in part to the selling . f securities held on American account. I-’OR ETON KXCTTANDES. The effect of the new bank rate, ns was intended, pui.-kly affected the American rate of exchange, which rose from Idol cents on Wednesday l’’ ■idol, fif'd cents yesterday, with some dealings to Idol. fi,7J cents. Heading commentators emphasise the relation between the fall in securities and the nervousness over the IJuhi crisis, and especially the present tension between Britain and Eranee. I hinervousness has also h'-en redacted in the foreign exchange. The •' Statist " comments on the decline in Allied currencies, "which, it says. “ was regrettable hut. inevitable. in cnn-.i-iplain e ol the mistaken policy in the Ruhr. Though nominally in favour ot the Kritish buyer, the movements are as deplorable from the British viewpoint as to the countries directly i ourerued. 'I hey reflec t a de- . dine in the economic strength of the issuing nations, and a shrinkage in impurtanl foreign customers’ purchasing (opacity. Future movements must depend aimost solely on political developments. If the A nglo-Kreneli vievp lints can he reconciled to a more pric--tiial renarn;ions policy. the French and Belgian francs and the Italian lire will immediately show a tendency to recover." wot 11. TRADE DEI’R ESSE IT The trade which is at pre-cut feeling most aetutolv the effects of the foreign ,exchanges is the wool trade, particularly in the worsted section. Already much machinery in the Hradlord distrii t -1 aml - idle, and more is running only on short time with the result that much well, houglfl in Australia on Bradford account, instead of being used to feed her combs, spindles and loom-x has had to he diverted It. the London saleroom, whence considerable ipianlitics arc inevitably going to the ; Continent, where the demand i- active. | owing to the Continental nmuulaetnrers ability to undercut the Yorkshire makes through their ex. barge advantage, w hich Sir flenry A\ hitche.id emphasised when a dcpulaliu saw Sir R. l.lovtl (Macule earlier ill the week. The "Yorkshire Host," says: j

“Bradford traders are becoming most impatient at carrying the burden of tliis mil,-sione of international iiiinpii...lions round their necks. 'They feel cations round lle-ir necks. Tlu-y feel enough, and that the uncertainty of settlement inil-t lie (piiil-.ly removed

one way or auntla-r." The ‘'Eederation of British lndus--11 ies". reviewing the wool trade lot

Aliy, points out that ii is becoming . more evident evety dav that the (lists ot nmnufacture in Yorkshire must somehow lie reduced. Strong pre--sure. therefore. is being exerted in the direction of lowering the dyeing and finishing (barges, which are still regarded as excessive. THE A I’RLE SEASON. The Australian and New Zealand apple season is drawing to a close w ith onlv one or two ships still to arrive. The -i-a-on opened ncs-t iiiau-iiiciously. It was most nnfortnnatc that earlier shipments r-.ii-i.-K d o! immature Irnit, much of w!;tfh was l.adlv afleeted by hit ter pit. I Ids applied lo the tit st do/.en ships, all • < which arrived vli.-n I 'only of pH re.-uve Vmoricnli apph - were there. It is doubtful whether apple- from tile * twelve ships a\ craged Its .'id a cn-e, which left little or nothing far the growers. Later ■ hipmenfs w ill he on an improved market. , w mg 1,, two imi'.irlant lat tors :- l-'ir-l ly. the late summer j through,ml Europe holding l.a: k the j -ell fruits, and secondly, the fact that j the untilart- of Hull. Af.uiichesi.-r and . I.iv.-rpoal wen- more I rccly um-,1. wit it the re-tilt that the r.otidon luark.-t was never glut fed. l-’ormerlv. eighty per (eni of tin- A list i alia II and New Zealand apples came to L-mdiui, hut this year only sixty per cent, arrived, with the result that though prices obtained at the .imports were about tin same j as obtained in hoc Inn. n heller average was secured than would haw Fee,! ti a,-,.* I. Faiidon had been given a greater per cctilage of shipments. The improved prices of latter arrivals were also partly due to an advert i :ng eii.nipaigu. |l is believed that as a. result ot Air Henry Jones’,- representations hitter pit will not recur. lie succeeded ill -on', in. ilig tin- shipowners and engineers lhai hitter pit call he completely avoided by redtK ing the temperature to .‘{'.Meg. within twentyfour Imiirs. nr at ino-t lorty-eight hours alter loading in Australia. CANNED FI! FITS. Though tlm latem-.s the European summer bcneliircd the apple trade, it had a bad effeet on e-mnctl fruits. Last year’s cold summer and the late arrival of warm weather this year reMihcd in :i:i ot el-stocking of life ma rket with canned fruit-, "bill ir Mill VI-!-. slow and ddih nil m mo' The turnnvet' ol dried Iruits is ill o disappointing. Rt ’TI'.R AND (Ml EESE. It is impossible to fiiroo.lst I lie holier and cheese market, as at present conditions are only due to the eliect of the do: k strike. During the week-end fancy prices were obtained for a lew simiil lets from small stocks in wttre-lioiim-s. hut this is ito criterion ei the general trend. Fort ttnatel.v, the strike decs not promise t" lust long, and I reel supplies are expected next week iroia .-tores, even though new shipment' may not lie available.