BRITISH TRADE

Hokitika Guardian, 28 January 1930, Page 3

BRITISH TRADE

FCiiIINIGHTLY REVIEW. D'JiJj CONDITIONS ON STOCK EXCHANGE. bn.led Ties, Association.—By Electric leiegi ..pii.—'-op l > ngliL.j LONDON, Jan, 25. H-jpe was expi eaaeii a ter might ago that the deuiiio in Australian Governments s>ocks wo,aid not continue. Uiifurtimateiy it lias not been realises., D.iu Li.e in lees ot most of these cued a. Hi 1 c.i tliei . Particularly weak sales of Commonwealth fives were made yesterday at as low a., -os., s, .all oi fully JU9 compared witii six niontlis ago. Writers in the linanci-l liovvsp .pc.s attribute the decline to sales by nervous holders on apprehensions regarding local poliUs.s, Out mere are bluer causes. Undoubtedly one of .the chief of these Has been the codapso of the wool mur.vct, and tiie euect that it must have on the earning powers of banks, pastoral and other cam panics, which, i rge extent, depend on wool.

General business on the Stock Exchange has been very dulL It might ua\e been thought' that they combined effect of the satisfactory'- ending o The Hague Conference, easy monetary <|.-iuli lions and title announcement that the llatry group settlement, had . im a. .ed. would have been to rouse the markets from their lethargic condition. The fact is that apprehensions of what the Budget may’ bring forth, and continued dullness o. the ivall -Street market, have combined to counteract all the favourable factors. The only matter for satisfaction is that prices, generally are steady except for Australian stocks and Indians, which naturally suffered as a result of Gandhi’s latest announcement.

MONET \RY CONDITIONS. Our monetary, conditions are as eas-v as any. This week’s Bank return reveals a very strong technical position, a reserve of £64,889,435 being a record. In these circumstances disappointment is expressed, in some quarters, that tlie Bank rate has not been reduced, but the bestinformed financial writers consider the Bank of England directors wise in maintaining the rate. Thejr action is, apparently, due to caution inspired by a further decline in American exchange 1 , and though recovery is expected by ' -the end of tlie month, the directors are wisely not taking risks.

EMPIRE TRADE. The British Empire's* trade is not developing at a rate equal to ' the average for the whole world. The League of Nations has‘just issued a review of world trade from 1926 to 1928, according to which it appears that" the growth; - by'• value, 1 of-''- the total jtfade of the British T|mpire for that period amounted to only 2 per cent, compared with an increase of 8 per cent for. the whole world. The relatively slow development of British Empire trade is attributed, largely, to the contrcation of trade in Australia, and low prices for crude rubber. Despite this, however, New Zealand and Canada have the largest foreign trade, per head of population, namely £65 and £56 lyThe “Economist,” in its monthly survey of the state of trade, says: “The new year opened with feelings, distinctly qualified by optimism, It was believed that The progress made during 1929 had fallen considerably short of anticipations, but insufficient allowance possibly had been made both for several factors; which place current statistics in too unfavourable a light, and also for the effect on trade of the many disturbing influences of the year. There, however, can be no gainsaying the fact that the approaching Budget and the general position of national finances are viewed, in industrial circles with considerable apprehension, and this is having a bad psychological effect on trade.”

WOOL TRADE. _ . ' Discussing the wool situation, a, Bradford correspondent says: “The. decline in London has not made trading conditions better in Bradford, where there is, at present, no sign of any movement to take advantage of the current low prices. But spinners, make lio secret .of their intention to buy heavily when they are satisfied that the decline has reached its limit. The position -of the wool market again brings into prominence the justifiable complaint that, while raw material has sagged back to, or somewhat below the level of values current before the war, there is no sign of any advantage of cheap raw material being reaped by the ultimate consumer of wool commodities. ’ It is now becoming recognised in Australia, as in Bradford, that excessive retail charges for wool attire constitute the sole serious imnediment to that free flow of manu-; factures into the hands of the public, which is essential if the industry, from woolgrower onwards, is to operate in a sound and healthy manner. There is a' block in the stream between manufacturer and public, consisting of excessive charges which raise! the cost of clothing so high as to curtail the demand. Long charges rather than short dresses have been the cause of the sluggish demand in wool textiles.”