DULL TRADE.

Taranaki Daily News, 28 December 1920, Page 5

DULL TRADE.

ALL MARKETS DEPRESSED. STEADY FALL IX BUTTER PRICES.

.FREE MARKET AFTER MARCH.

Bj Telegraph.— Press Assn.—Copyright.

Received Dec. 20, 5.5 p.m.

London, Dee. 25.

The Stock Exchange has passed through a period of depression, with a considerable amount of forced liquidation. The failure of Farrow'* Bank revived unpleasant rumors about somewhat similar institutions, and renewed selling in the Consols and war loans market was attributed to forced realizations on their account.

The depression is also due to'the absence of any "bullish" factors likely to revive speculative interest, and some fear is expressed that even the .soundest undertakings may be troubled by the severe deflation of commodity and stock market values. Industrial shares have been weak, especially rubber shares, which are demoralised, owing to the decline in the raw article, but the Stock Exchange closed for the holidays with a slightly' better tone. There is not much business passing, but a cessation of liquidations during the last day or two caused giltedged stocks to take a turn for the better, while "industrials" also showed a generally firmer tendency. A satisfactory feature is a general movement in foreign I exchange rates in our favor.

I WOOL AND BUTTER. The wool trade is very dull, but there is an impression in some quarters that there will be a revival after the turn of the year. Inquiries are being made on behalf of Russia for khaki yarns and cloth, especially for greatcoats, for prompt delivery The quantity is not large, and does not affect prices, but it is regarded as a satisfactory symptom. Meanwhile, practically all the mills in the West Riding and Yorkshire are taking a week's holiday. There is little new business in prospect, and short time working will become still shorter.

Butter prices continue steadily downward. The Food Ministry is now purchasing Danish at 226s f.oib., a decline of ten shillings compared with the previous rate. The Ministry announces that it will eea=e buying any butter after March 31, when the Australian and New Zealand contracts terminate. Thenceforward private importation from all sources will be permissible.

WEAKXESS IN* METALS. J The weakness in metals has been very I pronounced. The setback in the oJeetro- | lytic copper was due to a continued lack of demand, and unsatisfactory American advises. Contrary to a general hope, the fixing of prices for Straits tin had little effect on the market. The demand from the United States and the Continent alike is slack, making the immediate future unpromising. The bad financial and industrial outlook causes expectation of further weakness in spelter. Belgians are refusing to sell at the present level, and the German prices also are above the London parity.

An acute depression prevails in the cotton trade. • Business is very limited, and despite 1 reduced output stocks, both of yarn and cloth, are increasing. The financial situation is strained, and rumors of trouble in Manchester caused considerable uneasiness.

DECLINE OF FREIGHTS. .freights continue to decline, and the ftnnage available is far in excess of the demand. A number of British and Scandinavian owners are laying up boats o\v|ing to the exorbitant'prices of bunker coal, and many more will follow unless the price is reduced. No fixtures for Australian wheat are reported, although all positions till April are obtainable for ninety shillings a ton, and prompt charters are even cheaper.— Aus.-N.Z. Cable Assn.