TRADE OUTLOOK.

Taranaki Daily News, 13 July 1920, Page 3

TRADE OUTLOOK.

THE FALL IN PEICES. BIT WORLD'S DEMANDS UNSATISFIED. By TeleerapU.—Press Assn.—Copyrleht. London, July 10. ' Though the Board of Trade returns for Jufte were less favorable than for May, the totals of the half-year's! figures are quoted to show the progress made in restoring the trade balance, but the question is asked if the progress is rapid enough. The outstanding feature is a continued slackening-off in new business. This applies in varying degrees in Manchester, Bradford, Birmingharti, Sheffield, and Middlesborough. Buyers are satisfying merely their immediate requirements, believing that prices have not reached the bottom. A more serious feature is further cancellations of Chinese and Indian orders, through depreciation of silver currencies! This is affecting especially the Lancashire piece goods trade. Extravagant purchasing by mills in the boom period aggravates the situation in Lancashire, but the authorities there, as in other industries, assert that a slump in the ordinary sense is impossible, owing to the high cost of raw- material and labor, also the practical absence of manufacturers' stocks. There have been no overproduction, and it is contended that tho world's demands are far from satisfied. A revival. is not anticipated • before autumn, if industrial troubles, notably among wool operatives and miners, are averted. Tramp steamer freights continue downward. An important factor is the United States embargo on conl export, affecting immediately 500 vessels; Time charters have declined about 15 per, cent, in three weeks. Almost the only bright spot in freights is the inquiry for coal tonnage from Newcastle (New South Wales) "at 145s to the Mediterranean, and 170s to 175s to Scandinavia.

Shipowner's and shipbuilders are alarmed at the heavy increase in the cost of new tonnage, and also the effect of the Genoa Conference decision. It is reported that many orders have hjeri cancelled.

The newspaper Economist says that the monthly index figures of wholesale prices for June show the largest fall for any month for some years, especially in textiles, but cereals and meat reached record high figures. The feature of the produce markets in the last fortnight, was the slackness in fibres, except flax, and stagnation in tallow, which wa9 said in trade circles to be almost unprecidented.

The non-ferrous metal trade Relieves that prices are finding a souuier basis owing to the elimination of tW speculative element and the transference of njetal to stronger hands. At' the same time fluctuation* have caused buyers to remain cautious. The Metal Bylletin considers that the worst stage of deflation has been passed through, but the time is not rips for a sustained upward moVs. •

Daily supplies of English mtat at Smithfield continue large. Prices are now little above the control level, and there is a corresponding shrinkage in consumption of imported' meat.—Aus.N.Z. Cabel Assn.