TRADE IN BRITAIN

Sun (Auckland), Volume IV, Issue 1047, 11 August 1930, Page 11

TRADE IN BRITAIN

INDUSTRIAL OUTLOOK REVIEWED PROBLEM OF HIGH COSTS LONDON, Saturday. With the holidays in full swing, business on the Stock Exchange has naturally been on a small scale. During the 21 days’ account just concluded little speculative activity has been shown, but investment in stocks preserved a good tone. British funds hardened appreciably in the hopes of the cessation of the drain of gold to France, and a consequent lessening of the fears tlint money will become dearer. Victory bonds have been sold at a record price, and the 5 per cent, war loan almost touched the highest quotation ever marked. Dominion stocks generally were steady, but Australians have mostly fallen back somewhat from the improved prices realised early in July, and so far have not responded as they might have been expected to do to the Loan Council’s acceptance of Sir Otto Niemeyer’s views with regard to borrowing. ATTACKING COSTS Barclay’s “Bank Review” contains an interesting article with reference to the bankers’ resolution regarding safeguarding. The “Review” argues that the only alternative policy to that of a low safeguarding tariff which might enable Britain to develop the Empire market and still retain, through lower costs of production, a fair share of the trade of other foreign countries, would be a thorough reduction in wages, but such a policy would obviously be attended with great difficulty, even though it might reasonably be hoped that an adjustment of wages corresponding with the cost of living might become acceptable on broad lines. TARIFF REACTIONS There was, however, no guarantee that a reduction in costs of production in Britain might not be negatived by still higher tariffs imposed by foreign countries. Therefore the most practicable line to follow to obtain a more rapid development of Empire markets, as well as to retaining the other foreign trade, would seem to be the safeguarding of the indListries of Britain, and securing effective power for bargaining in the interests of British manufacturers’ trade, as proposed in the bankers’ resolution. The prospects for the Australian and New Zealand egg season do not appear too promising, and shippers may find that prices will not equal last year’s, disappointing as they were. Continental arrivals just now are large, and although supplies of British show the usual seasonal decline, the demand is poor, and the market irregular. BUTTER PROSPECTS DULL LONDON, Saturday. The butter market has again relapsed into dullness, consumers having apparently more than filled their immediate requirements. During the period of active buying early in Juine, retailers had been using their coldstored stocks, which have thus been considerably reduced, but still remain very heavy, and as the quantities afloat to Britain from the Southern Hemisphere are large, amounting to 257,000 boxes, compared with 143.000 a year ago, there seems likely to be a large amount on hand when the new season’s Australian and New Zealand butters begin to arrive. NEW ZEALAND’S EXPORTS BIG FALL IN WOOL The following table, compiled by the Government Statistician, gives a comparison oi the value of the principal exports from the Dominion for the years ended June 30. 1929, and 1930: 102S-29i. 1929-30.

£ 12,744,092 £ Cheese Pish "IS 6,3 79:ol? Beef, frozen .. .. Lamb, frozen . . , . Mutton, frozen .. Pork, frozen 808,266 fi,925,Sol '■unit 1 !042isil 4 "; 4 6=o -Meats, potted and o,-84 Sausage casings . ! Milk, preserved Milk, dried GslioOS 49,069 a s 1.7,972 447,509 15,942 8,298 117,710 300,107 677,552 555,811 102, S12 779,651 *IS:!s 8 J Oats 1<I . 700 Apples, fiesh .. .. 724,595 16,235 13,007 2oi;ias Bive stock Calfskins Hides, horse and Rabbitskins Opossumskins . . !. aiiiS! 464,303 1,473,253 15,923,157 371,520 172,621 719,099 247,228 247,094 333,515 Sheepskins, without Wool Phormium fibre Seeds, grass and 8,15*'*09 273.77S 167,781 6S6.261 215,568 257,964 Tallow coat :: Gold Silver Leather Timber, sawn .. Other ]S7.55. pro43,288 408,'l5S 827,957 46,110 8,722 426,505 874,829 Total New Zealand produce Re-exports .. 55,2S8,407 956,343 46,223,057 1,365,156 Total exports 56,244,750 47.5SS.21U