INDICATIONS OF REVIVAL OF TRADE.

Shannon News, 8 January 1924, Page 4

INDICATIONS OF REVIVAL OF TRADE.

LONDON EXCHANGE SOMEWHAT NERVOUS. (Received Sunday, 11.5 p.m.) LONDON, Jan, 5. The Stock Exchange has had somewhat of a setback this week. Business was resumed after the New Year's holiday ini cheerful vein, des. pite our home political uncertainties, but the sudden break in the New Year exchange, accompanied by further weakness in the French franc, brought about general depression, with some pressure required to sed giltedges Since then, prices have fluctuated according to exchange movements. The decline u- Nvw York exchange is generally attributed to nervous, ness regarding the abnormal political situation here, with the possibility of a Labour Government, which has induced the export of capital from London to New York. Although the New Year opens in a cloud of uncertainty regarding home events," and the Continental situation is still full of perplexity, it is satisfactory to find that .in most quarters an optimistic feeling P* e " vails tip to the future of British trade. The position is still described by the “Spectator’s" financial correspondent, who says the closing weeks of 1923 afforded many indications of a real stirring of activity in the dry bones of trade. Bankers’ clearings for the final quarter of the year show a huge increase over those of the corresponding period for 1922. MORE EMPLOYMENT .AND LARGER. DEPOSITS.

Unemployment figures have shown a steady improvement in recent weeks, and both banking advances and deposits tended to advance dur. ing December.. Foreign orders are larger than for some time past and some discount houses tell the same story of a larger proportion of commercial bills in their' portfolios than was the case a year or two ago. On the whole, therefore, there seems to be fair reason to hope that if the situation is not disturbed by strikes or other forms of labour unrest, quite a fair revival in trade may be among the features of 1924. ENORMOUS WOOL DEMAND.

With regard to the wool outlook, the Schwartze, Buchanan company, selling brokers, write: “Consumption continues on an enormous scale, even though certain countries have been necessarily restricted in their pur. chases, owing to financial stringency. Evidently' the limited’ supply of Merinos has barely sufficed for the demand and crossbreds by their very cheapness, have finally forced them selves into greater favour and rose in consequence. In view of the further diminution of the ‘Merino clip, and that fine goods are still in .vogue, it would seem that prices of Merinos are unlikely' to decline materially, , but. rather to be further enhanced if the financial position in Europe improves. In the values of crossbreds, there is the possibility that there ma.y be a slight reaction in coarser grades as the rise in these qualities has been so rapid, but we incline to the view.that it would be only temporary and that here again the shortages of supplies will dominate the situation, subject always to political events, and that we shall see higher prices later on in the year.

The other express similar views, their general opinion being that though the political and economic conditions of Europe still afford ground for anxiety, 1924 opens with indications rather more hopeful and more confident regarding the trade outlook, not only of the United 'Kingdom and the United States, but in other directions also.

SHIPPING CIRCLES GLOOMY. But, while an optimistic feeling prevails in respect of many trades, there is one industry about which all the prophets are Jeremiahs. This is shipping. In its annual report the Steam' Shipping Angicr Company writes: ‘‘Whatever faint hopes were cherished' that 1923 would show a turn of the and that business would improve, they were practically extinguished when, in January, the French fould it necessary to occupy the Ruhr district. Though the cessation of work in the, German, coal mines led to a certain amount of extra employment for tonnage' conveying British and American coal to the Continent, the net result upon the trade of the world was deplorable, and, generally speaking, freights have never been lower than in 192 3. The merchant fleets owntfd by various Governments have, of course, been affected even more severely than those of private owners, and it has been computed that the losses on running on the taxpayers of tlie United States; Canada, and Australia amount to about twenty-eight millions sterling- during the past two years, apai-t from capital losses (about six hundred millions), while the results to the Portuguese have apparently been proportionately heavy. The one nation whose mercantile marine has flourished is Germany, whose ship-owners were assisted by their Government to replace steamers lost during .the war, and who are rapidly regaining the place they recently held. Freights are paid in sterling, dollars, and other fairly stable currencies, and home expenses are payable in marks. Hard-working and exr pert shops companies and a real bent for ship management must .inevitably make themselves felt and the competition of German lines especially is already a serious factor. SILVER CURRENCY. . In reviewing the position of silver, Messrs Pixley and Abel, bullion brokers, say the outlook for the coming year is somewhat uncertain, and ih some-quarters tho present level of prices is .considered higli < as American production will how. be available f 6 the open market, but, on the other..

hand, sales of Continental silver are becoming more and more' irregular and uncertain, whilst in_ some European countries it is possible that silver currency may be re-established. Latvia has already decided to introduce a new silver coinage, and jit is reported that' Austria" and Danzig are about to reintroduce silver coins.