EMPIRE TRADE.

Taranaki Daily News, 13 December 1920, Page 5

EMPIRE TRADE.

WEEKLY SUMMARY.

.WHOLESALE BUT NOT RETAIL

DECLINE,

By Telegraph.—Press Assn.— Copyright.

Received' Dee. 12, 5.5 p.m.

London, Dec. 11

The trade summary states: After a dismal week the Stock Exchange improved somew'nat yesterday There had been considerable forced selling, chiefly in industrial oils, but this abated during the past few days, and the offerings were fairly well absorbed, particularly in the investment sections. The news that the coal miners were increasing the output had a good effect in giving a more hopeful tone, but there is still a fear that further pressure to sell may be exerted before weak positions are entirely eliminafeti. Foreign exchange movements have been mostly adverse to Britain, especially Scandinavian, owing to the slackening of imports Trom the United Kingdom.

The severe decline in Eastern currencies is decidedly unfavorable to development, preventing purchases on our markets, which are desirable to relieve our trade depression.

Depression is still the outstanding feature of the wool and textile industries. New orders will barely suffice to keep the machinery running even for a short time. The operations of the piece trade shows no improvement. Stocks continue to accumulate in spite of the drastic reduction in prices. Business in wheat is very quiet, supplies exceeding the requirements of the millers, who are holtfing off, expecting a further reduction. There were a few saies in Australian parcels, but the Australian Committee is not offering much, The freight markets, generally are depressed, owing to over-supply of tonnage. One exception is Australia, wherefor the prices asked for JanuaryMay charters range from 105s to 110s, though prompt steamers are obtainable at 100s. The statist's monthly index numbers of wholesale prices of commodities show a steady decline since April amounting to 15.9 per cent., but they are still Ifili per cent, above the average of 1913. The Statist points out that since April the cost to the consumer has been lowered on some lines, notably textiles, but in many cases the' retail prices have actually increased, while the general retail level shows no fall parallel with the wholesale fall.

The present decline is due to restriction of banking credits, greatly helped by tife marked abstention of consumers. This may be regarded as a natural reaction, and is abnormal. The largely artificial enhancement of money values which began soon after the armistice, will continue /,ill prices arc reduced to ievel which will make banking resources again sufficient for the requirements of trade.

GOVERNMENT CHEESE REFUSED.

The cheese market is dull, and supplies very large. It is estimated that the Government holds twelve thousand tons, while stocks of Canadian here and afloat amount to ten thousand tons. There are also large stocks of homemade: consequently retailers are refusing Government cheese and selling the home-mado cheaper. It is stated that retailers refused eighty per cent, of the last allotment.

DOMINIONS HOLDING BACK.

llr. F. G. Kcllawav (Parliamentary Secretary to the Department of Overseas Trade), in the course of an interview with the Australian Press Association, said that Imperial trade was none too. bright, notably in India and Australia. The former was suffering from the reduced exportation of 100,000.000 pounds weight of t.ea to Russia yearly. There is a good demand for British goods in Canada and New Zealand. Both these countries are able to buy, and both able to pay, but both are holding back in anticipation of prices breaking.

AUSTRALIA'S POSITION. Australia was suffering from financial re-action, but he wis confident that when tile wheels of commerce are running smoothlv. Britain will recover most, if not all, her lost trade; also her nndii-puted supremacy #.< the source of supply. Australia had been importing good 3 much exceeding the value or her exports to Britain; consequently there was a pronounced shortage of liquid funds in the Australian banks in London.

THE WOOL POSITION. Referring to the wool position, Mr. Kellaway siiid that a fairly even flow of credit for Australia had been preserved for' the lafit few vearß bv the British fioVernment's promptness in paying for' produce purchased from the Commonwealth. On wool appraised in Australia ipayments were made in London within a fortnight of the appraisement, and the long wait which would otherwise have intervened pending the arrival of documents against shipment was thereby avoided. Wool was now being released from control, but the proceeds ot the first three shipments in transit 'from Australia would not become available at the banks in London until tlie maturity of the drafts drawn against'them. Furthermore, the British Government paid in advance for the wheat .and wool exported last July and August.

POSITION WILL RIGHT ITSELF. Mr. 'Kellawny concluded: '"From the statements made by the Commonwealth Treasury officials it appears that the position created by the above-mentioned economic factors is only temporary, and that the position will right itself when the present wool clip and coming harvest), are realised. The present stopon gc credit, with the consequent hfaryj restriction on export business, is likely; to endure until unless the Comirjfinwcaltli takes action in the meantime." —Aus. 'and K. 55. Cable Assn.