TRADE REVIEW.

Taranaki Daily News, 18 October 1920, Page 5

TRADE REVIEW.

INFLUENCE OF THE STRIKE, PERIOD OF DEPRESSION. By iasn.—Covntgbt, Received Oct. 17, 5.5 p.m. London, Oct. 10, Under the influence of labor and financial difficulties, especially the coal strike, a downward trend is noticeable in almost every department of the Stock Exchange, with particular weakness among the more speculative shares, but, taken as a whole, investment stocks are holding their own remarkably well, and there is no inclination to realise. Financial circles generally expect a speedy settlement of the strike, but a dangerous factor is that foreign exchanges are moving against us, for a strike renders Britain more than ever dependent on foreigners for supplies, while we cannot export in return. The money market is working better on the knowledge that sales of Treasury Bills lately considerably exceeded those 'maturing, but the general trade position does not stimulate the demand for bills. TROUBLE AHEAD.

There are several disturbing elements in the trade position, notably failures in Amsterdam, Java, and Christiania. The position in many neutral countries is causing alarm, particularly in Scandinavia. During the war neutral countries made huge profits through supplying belligerents. Many new firms started and indulged in wild buying of commodities, forcing prices Unduly. Since the armistice the value of these articles had steadily declined, and many speculators are now burdened with a large stock which is unsaleable, except at a heavy los 3, Old-established, steady-going houses are generally in a sound position, but it is feared there must be numerous liquidations among speculative firms before the situation clears. Regarding wheat, Bathgate's Review say 3 that though we have not yet definitely turned the corner, the outlook for supplies has improved. There have been additional South American, Australian, and Indian shipments. Manchurian exports of wheat and flour are assuming considerable importance, and if developments there proceed at the same rate as during the last few years we may expect Manchuria to exercise a considerable influence on the world's markets. Chinese flour to-day is the cheapest obtainable anywhere, being landed here at many shillings per sack cheaper than flour can be bought in any other exporting country. Russian and Danubian countries are beginning to export some wheat, and this movement may expand if the Poles and South Russians maintain their ascendancy over the Bolshevists.

WOOL STAGNANT. The Bradford wool industry remains stagnant. There is a little enquiry for tops, mainly on German account, but insufficient to have any effect. The piece goods trade is very slack, owing to large stocks being held at high prices, and a lack of public demand, owing to dearness, with a decline in the export trade for the same reason. The position regarding raw materials is by no means clear until the Government's policy regarding stocks is announced, so there is a general lack of confidence.

Reports from the wine-growing centres indicate th&t the European vintage ■will not be plentiful, but the quality promises well and it is expected that of some districts will be good. Prices seem lately to harden, owing to ■higher costs in connection with labor and establishment charges. Despite a heavy fall in copper, the trade remains dull. Consumers in the Usited States received cancellations of many lines of finished products, and growing stocks there necessitated farther closing of mines and decreased production. While the immediate outlook is not promising, the present low level may attract consumers, but heavy consumption cannot be expected till the monetary conditions are favorable. The position in tin is regarded as quite sound, but prices have been driven down in sympathy. There is a depression in other Far Eastern products, while the coal crisis has stopped buying by tin-platers.—Aus.-N.Z. Cable Assn.

DROP' IN COTTON. NEW YORK MARKET FALLS. Received Oct. 17, 11.5 p.m. New York, Oct. 13. The cotton market has reacted in sympathy with the English coal strike. Cotton, which has been falling in price recently, dropped virtually forty point < to-day.—Aus.-N.Z. CaWe Assn. BRITAIN'S SLUMP. PRICES CONTINUE TO FALL. London Oot. 15. Prices continue to« decrease. Gloves have dropped from 10s Gd to 7s Od and woollen socks to Is lid. There is a remarkable demand for five-guinea suits. Boots, shoes, and linen have considerably decreased. Tea is Is 8d and 2s 8d against 2s Sd and 3s, and cocoa is Is Gd against 2s 6d. Orders from abroad have been reduced. Owing to the full in the sterling value on the Continental, Indian, and Chinese exchanges, metals have dropped. Yorkshire warehouses are stuffed as the result of cancellation of foreign orders, and factories' are working short time. The demand for wool is weak, and the majority of wool sorters are unemployed. The hope of improvement is remote. It has been estimated that it costs 3000 per cent more to produce a yard of 12 ounce serge than in 1915.—Au5.-N.Z. Cable Assn.