TRADE REVIEW.

Taranaki Daily News, 1 November 1920, Page 5

TRADE REVIEW.

APPRECIATION OF THE POUND WOOL STILL STAGNANT. CHEAPER WHEAT EXPECTED. By Telegraph.—Press Assn.—Copyright. Received Oct 31, 5.5 p.m. London, Oct. 30. The news of the settlement of the coal strike had no great effect on the Stock Exchange, for the feeling there regarding the result had f been optimistic throughout the week. Gilt-edged securities' have been very quiet, but generally firm, except Consols, which are somewhat freely offered. Coldnials are mostly dull, especially Queenslands, which failed to make any recovery on what the Statist newspaper calls Mr. E. G. Theodore's somewhat dubious recantation. Home railway stocks naturally benefited from the coal settlement; as also did shipping shares. in which there is fair activity. A feature of the week has been the marked appreciation of the sterling in most foreign countries, especially neutrals. This is partly attributable'to the coal settlement, but chiefly to Britain's action in renouncing her reprisal rights against Germany. One result of the reprisal clause was to cause the accumulation of a. German balance in foreign centres, especially in Holland, and it is now anticipated these balances will be transferred to Britain.

The wool trade continues stagnant. There is more inquiry from the United States, but very little from France and Belgium. A stable basis for raw material has not yet been reached, and cannot be reached until the prices of finjsluVi goods are lowered and export trade increased, which is dependent on more stable exchanges and a better financial position on the Continent, There is still practically no business ; n Bradford tops, on the expectation of lower values. Australian forward quotations have reduced super sixty-fours to 57d without attracting buyers. There is some German inquiry for crossbred?.

The carters' strike continues. Merchants are still full of high-priced goods, and all sections of the trade are pursuing a hand-to-mouth policy. Short time continues, particularly in combing, sorting, and also the heavy wool trade, in which most of the machinery is workin" only twenty-four to thirty hours weck'c" Cancellations in this trade have l«i creased considerably during the last fortnight, home and foreign customers cancelling on the slightest pretext. This is becoming so serious that manufacturers have formed a committee to deal with cancellations, and arc taking steps to publish a black list of merchants who shirked their legitimate obligations. Wheat traders arc anticipating a world-wide decline in prices if the Australian and Argentine harvests turn out as well as they promise. They also expect early de-control, which will lower prices here as it has already done in Canada.

The metal markets closed firm. Copper is recovering after weakness early in the week, due to competition! in all quarters to sell refined and! semimanufactured metal. Transactions in tin are much larger than for some time past, but there is not much consumptive buying. The "bears" have been activelv covering Continental speculators. There is much evidence that spelter production in Belgium seems likely to decrease, as present pric.es are unremunerative, and supplies of concentrates are not plentiful. Producers are not keen to procure additional raw material, as stocks of zinc in Belgium are con-siderable.—Aus.-N.Z. Cabls Assn