BRITISH TRADE

Hokitika Guardian, 15 March 1930, Page 8

BRITISH TRADE

FORTNIGHTLY REVIEW

MORE OPTIMISTIC NOTE ON .'jj.Uv.iv exchange.

LU.vUON, March 8.

The stock w at last show ,ug syi.vol recovery from a long period 01 depression. Early this weeK nuiinea.s still prevailed, but politica developments and a better monetary outlook brought about a more cheerful tone, and tne reduction of the Baut • ate gave a further stimulus, with the result that the market closed yesterday with prices generally firm and a feeling •of mild optimism abroad. Thorp has not yet been any grent increase jn buying on the part of the public hut the stream of sales by •. .wit vis holders lias been checked and as the influence of cheaper money spreads, some expansion of business mav be expected. There is, however, unlikely to be any sharp recovery in markets, for inventors have been having a bad time for some months, past jind it cannot he expected that then confidence will be restored in a moment. There is also uncertainty about what the Budget will bring forth, and until that is out. of the way investors nvo ldmlv to hold their hands. That investors are not disposed to i r shown hv the result of sevJornl new issues, of which verv large nropertions—"o and 80 per cent —have been left with the underwriter.

WOOL TRADE

Regarding the wool position a correspondent of the “Yorkshire Rost” says that if the Australian growers accept the advice off. the wisest leaders, they will have nothing to do with such a scheme as that under which 40,000 bales will be withdrawn from the mui - ket. The great need of the trade today is a larger consumption, and the withdrawal of 40,000 bales would defeat that object. Assuming that it is practicable to keep such a quantity off the market, the inevitable result would lie to open the door to an equivalent quantity of competitive fibres such as artificial silk, wool, and cotton. On the other hand, only a very small increase in public demand 'for wool clothing stimulated by the fall in the cost of the finished article, would account for the absorption of 300.000 bales in no time. “Everything points irresistihlv to the conclusion that for the improvement of the wool industry—and nn increase in employment, possibly even n rise in the price of the raw material sufficient to sntisy the srrowors—we must look to the nnfrmentntion rvf the ultirnnte demnnd which can only come about when retail prices, which are quite out of touch with present-dav realities, have been so drastically .modified that the public will buy freely.”

IDLE SHIPPING

The position in the shipping industry is becoming most serious, according to a writer in the “Financial Tim-

More than 300 vessels with a carrying capacity of nearly 2,000,000 tons, mostly flying the British flag, are lying idle, with their crews, numbering some 10,000 men, paid off.

More than 1400 men and officers are seeking employ \nent at Cardiff, compared with less than 100 a month ago and less than 900 two months ago This is a typical state of affairs prevailing in seaport towns in the United Kingdom in the last two months.

Vessels have been laid up on an unprecedented scale, as the collapse of the grain markets has tendered it impossible for the owners to secure profitable employment for their ships. The. collapse of the grain markets has been reflected in other trades to which ships 'are diverted, with the result that the supply of available tonnage has exceeded the demand. The inevitable reduction in rates has occurred, though the laying up of vessels lias created a steadier tendency.

'Outward freights and homeward requirements are still too meagre to offer

any encouragement in the near future, though much is hoped for from the steadv absorption of tonnage in tTie Russian timber trade through 'tille opening of the White Sea and the Baltic ports and the navigation of the River St. Lawrence.

The future, however, will depend on "ruin sh’nments. for unless there is a r -”hstantial improvement in this direction the volume of shipping available f°r other trades will exreed requirements.