BRITISH TRADE.

Hokitika Guardian, 3 February 1925, Page 1

BRITISH TRADE.

FORTNIGHTLY REVIEW. THE STOCK EXCHANGE. LONDON, January .‘JJ. Tlio Stock Exchange had a dull week, tho public showing little inclination to operate in either investment or speculative stocks. There certainly has been activity in whisky shares, in connection with tho big amalgamation, and some buying of 3j per cent conversion loan, which is attributed in some quarters to tho hope of a reduction of lid in connection with income tax, which, k ;< calculated would make the conversion loan stock worth £BO to give the same yield as now. But the markets generally have been decidedly slack, Colonials being affected by tno imminence of Queensland’s .£12,000,000 conversion loan which is expected next week, though possibly it mnv be later. COLONIAL LOANS. In connection with borrowings the “Economist” gives some interesting figures and comparisons. Colonial Government loans issued in 1921 amounted to £‘>o.oßl.ooo, ..-Dinpared with £69,409,000 in 1923, and £•20,279,000 in 1913. The average yields of colonial issues in 1924 were 4.99 per cent compared with 5.00 in 1923 and 4.15 in 1913. These compare very favourably with foreign Government loans, which averaged, for 1924. 7.00, and for 1913 5.31 per cent., but it must be remembered that most foreign loans in 1921 were European reconstruction issues connected with the Dawes scheme and the League of Nations plan. GOLD STANDARD. The prospect of returning to gold standard has lieen the subject of interesting remarks by the chairman of the five hig banks at meetings held this week, and, as tho “Statist” points out, these financial authorities have shown ; striking unanimity in three esential points:— (1) The desirableness of restoring an effective gold standard by the end of 1925 at the latest. (2) The absence of any moral obligation to remove restrictions on gold if tho pound returns to parity in the near future. (3) The necessity of not taking steps towards a gold standard until they can see their way clearly to maintain a free gold market against all shocks of international finance and trade. TRADE OUTLOOK. Regarding the trade outlook Sir Harry Goschen, chairman of the National Provincial Bank, speaking at the annual meeting, said the prospects for increased trade throughout tho world were favourable and confidence was gra dually returning. “ Sentiment on all sides is more optimistic,” ho said, “ and people generally seem more prepared to hoy more and are able to pay for the goods they need. “ If we are to take advantage of the increased opportunities which these more favourabo conditions offer, it is imperative for us to put ourselves in a position to meet competition from wherever it may come. To do this our cost of production must come down. There is no blinking the fact- that, generally speaking, in no trade in this country are we working to full capacity per man per hour.” Sir Henry Goschen said manufacturers did not wish to see wages reduced while the cost of living remained at the present level, hut, if the present standard of living was to he maintained, operative labour in all trades must put forward its best efforts and increase tho output per man per hour, in order to make it possible for industry to exist. and to provide the same remuneration as at present. Even a. comparativelv small increase in the rate of output in British factories would have a far-reaching effect in lowering the cost of production Tt was in this direction that the salvation -f Girlish trade lay. WHEAT MARKET. The activity in tho wheat trade and the sensational rise in prices are largely the result of the cessation of Russian exports, which means that, the half-dozen countries which Russia usually supplies will have to go elsewhere. notably to America. \ccording to a member of the Russian Trade Delegation the shortage, of exports is due to the present boarding of grain, but a well-informed wheat importer says the real position is that there has been a serious diminution ol wheat production in Russia, the agriculturalists not growing move than mmmdi for actual consumptive requirements. as they fear the Soviet authorities might confiscate any large quantity prod need.