SLUMP IN TRADE.

Taranaki Daily News, 8 January 1921, Page 11

SLUMP IN TRADE.

THE AMERICAN OUTLOOK. PROBLEM OF FOREIGN EXCHANGE. STEEL FOR NEW ZEALAND. (Shipments of United States steel for New Zealand and Australia are still on a moderate scale, according to business reports received in the Dominion l£° ra Messrs. Mailer and Quereau, of New York. The United States Steel Corporation, which practically controls the industry, has two million sterling worth of orders booked, sufficient to maintain prices and full-scale production until the end of June next. Transportation, however, is the great difficulty. The American railways have not yet recovered from the stress of the war period, when, under Government control, they lost a great deal of their efficiency; and the threat' of a general strike in the coal mines has sent prices of steam coal high above normal. BUSINESS OUTLOOK CONFUSED. The general business outlook in the United States is not of the best, say the business circulars from New York As well as the increased price of coal, Labor has been more aggressive in its demands, but there has been an increasing immigration from Europe during the latter portion of 1920, which has tended to refill the labor market depleted early in 1920 by the departures of Central and Southern Europeans returning to their homelands freed by the

In manufactured goods, it appears, there have already been numerous reductions in prices, and these apply particularly to textile goods of all kinds, where the reductions in some instances have been as large as 40 to 60 per cent., but so far this has not stimulated trade to any large extent. In woollens there has also been a severe decline, but this is largely offset by the lower prices now being paid for wool, in some instances more than onedialf those that were ruling during the period of the war. Economy is being practised by nearly everyone and this applies specially to wearing apparel, and also in some degree to foodstuffs, particularly luxuries.

CHEAPER MOTOR-CARS. In one line there has been a very great decline in manufacturing, namely, automobiles, where the demand suddenly fell off sharply, and every company has had to place their working force on a short-time basis. Prices of nearly all cars have been sharply reduced, and it is expected that others will soon follow. As the automobile trade is such a large consumer of steel products, they have been asking for cancellations or extension of contracts, and this has materially lessened the demand mad£ on the steel companies. The problem of foreign exchange still torments the bankers of; the United States. They profess themselves utterly unable to state how the market will go from week to week. During November there was difficulty in selling bills of exchange on New Zealand and Australia, as the London bankers were not disposed to make advances and wiere requesting the holding back of shipments unless absolutely necessary. In the copper market there has been a notable —in some cases to a point below the cost of production. The mining industry is feeling this condition acutely, and the decline in the zinc market is- aggravating it. i European trade is in no j better plight than American, and the outlook is equally confusing. The increase i|i coal prices in Great Britain is felt to be the prelude to an increase in manufacturing caste, arklrth jjj tW2I JBMUIt. ah«4tJK