BRITISH TRADE.

Hokitika Guardian, 18 October 1923, Page 1

BRITISH TRADE.

FORTNIGHTLY REVIEW. THE STOCK EXCHANGE. AUSTRALIAN AND N.Z. CABLE ASSOCIATION. LONDON, Oct, 13. Although the long expected and eagerly desired improvement in trade in (Lent Britain has not yet matcriallisod, some of those best acquainted with trade conditions claim to see signs of slight iniprovemnt in some directions. One well-known financial writer says: “Although it is not a matter on which bankers are inclined to bo optimistic, 1 find a certain amount of agreement in financial circles that, in more than one industry, things are looking just a little brighter. It is not improbable that to .-nine extent these signs of improvement may he directly

connected with special orders relating to the work of rebuilding Japanese cities. Any special stimulus arising therefrom will he set off by the inevitable diininu-

ion for the time, being of ordinary

trailing operations with Japan. There is. however, a ieeling that commodity trices may have nearly touclii’il bottom,

md this gives buyers greater coitfilenec. The same signs of trade expansion are also revealed to some extent n the slight growth of hanking depo-

sits, which show quite a fair advance compared with March.”

Another financial expert points out that relevant statistics show that September, 1922, marked the lowest point in the post-armistice trade curve. There has not been progressive recovery since then. On the contrary, there was well marked reaction in the late spring, due mainly to depression in an important group of Continental currencies, which restricted their buying powers while it gave them additional advantage in foreign competition with our exports; but over the twelve month

since Seplcfinber, 1922, regarded as a whole, there has been a very evident improvement in trade. Other financial writers are hardly so optimistic in their outlook, and they regard as striking evidence of continued trade stagnation the fad that, on -Stock Exchange gilt edged securities have been comparatively firm at a time when all speculative markets have been

inclined to drift. The strength of giltedged securities and the steadiness of the investment demand have, indeed, been outstanding points of tho Stock Exchange during the past fortnight. There could not lie a belter illustration of this than the success of the Com-

monwealth loan, following so closely oil Victoria's largo issue. A feature of both loans was the absence of staging by speculators and profit makers, which was shown by the fact that both loans command .substantial premiums, the Commonwealth i! per cent and the V ictorian J per cent. Following these there was the Nigerian loan of £5,700,0(10 at -I per cent issued at £9.8 and redeemable in R)(i,‘J, which promised to he equally successful.

THK AVOOI. TIIADK. A t'l'jitnr<? of [!io wool trade is the reviving of the Yorkshire demand for cross-breds. ISotli at the Liverpool and the Hull sales Bradford buyers took the Imlk of the offerings, and their .requirements seem to he still unsatisfied. The position is well described m a Yorkshi ro newspaper, which says * "The clouds of pessimism which so long overhung the Bradford market are being gradually hut surely dispersed by increasing liveliness in the demand for cross bred tops and yarns. Keen those whose business is confined largely to merinos are inllueiicecl by the more cheerful atmosphere, although they

have really nothing tangible oil viiich to base a hotter view of the outlo.-K. Topmaker.s far the time being .v almost abandoned their attempt to in.-ko profitable prices for merino tops. When full allowance is made for the difficult

position of merinoes, the fact remains that business is improving. It is i.ot merely a question of a firm here and there having hooked a few order.-.'.. \\ iih one accord all report that they rre booking both on the Homo and export account. Indeed, it seems as though the tide lias turned in a double sense. There is good ground for believing that the worst of tin- depression has passed, j ami there is also a very definite world-j wide movement in favour of cross-bred j cloths, because they are cheap. They are being used to an increasing extent 1 in the ready-made clothing trade be-J

cause iliev produce men's wear that is saleable at a price in harmony with the reduced purchasing power of the people. It is so also in America. dairy produce.

The butter trade remains exceedingly quiet, hut importers are not despondent. although their optimistic hopes of a fortnight ago were in A realised. Buyers have retrained Irom operating in rile hope el" forcing prices down, hut there is undoubtedly a shortage of supplies, and before long the demand must arise again. To quote tho report of one of the dairy inspectors. “We do not think this state of trade can last long, and wo look forward to a much brighter market at lower prices.”