TRADE BETTER.

Taranaki Daily News, 10 January 1921, Page 5

TRADE BETTER.

NEW YEAR OPENS WELL. ALL ROUND IMPROVEMENT. HOPE OF A .REVIVAL. By Telegraph.—Press Assn.—Copyright, Received Jan. 9, 5.5 p.m. London, Jan. 8. The Stock Exchange started the New Year in an encouraging fashion, and there was an all-round improvement. A feature of the rally was gilt-edged securities, especially Victory Bonds, which were quoted at £74 17s 6d, compared with £7O 15s on Christmas Eve. The rise is generally attributed to the expectation that the excess profits tax will be removed, and possibly an extra ten per cent, will be imposed on death duties, in payment for which Victory Bonds will be accepted at their face value. The markets generally are optimistic in expectation that cheaper money will bring a revival of trade and more settled worldwide political conditions. There has been no sign of a renewal of forced liquidations, which were so marked a feature in December. A slight relapse of prices is due to profit-taking with the turn of the year. The conditions of the money market have returned to normality. There is some discussion regarding the impossibility of a reduction of the bank rate, which would immensely assist a revival of trade, but a reduction seems hardly possible, unless the money position in the United States becomes easier The dividend announcements of the big banks have been awaited with unusual interest owing to the decline in prices of their shares last quarter. Out of seven banks and three discount houses which issued accounts all maintained dividends ranging from ten to nineteen per cent., Lloyd’s Bank and Barclay’s London Joint Bank showing record results. The prospects for the wool sales opening oh Tuesday appear favorable. More confidence is apparent regarding raw material values, as top makers are carrying very small supplies, and must reenter the market. A likelihood of the commencement of the export credit scheme also gives hopes of better conditions in the woollen trade. An export corporaj tion has been formed to utilise the cre'i dit scheme in order to ship surplus woolI len and worsted clothes to the Conti- • nent. I There is a more cheerful tone at Bradford, sellers stiffening in the belief that values are* low enough, and that the ! Australian realisation scheme is likely to cause a firmer* tone by its effect on spot values. There is an improved inquiry foi yarn, but piece goods are still a drug in the market, though pricecutting is becoming general. A renewal of the control over apples appears unlikely to have much effect in raising the prices of Australian varieties, except possibly finest West Australian. At present the market is flooded with Nova Scotian and American varieties, of which fully ninety-nine per cent, are selling under control prices. Oregon Newtons are fetching 20s, and Californian Jonathans 16s to 18s. Covent Garden dealers say it is probable supplies will continue plentiful till April at least. Heavy shipments of oranges are arriving. "If Australia ships a million and a quarter cases it must not be expected that they will realise anything like control prices, for any but the choicest sorts. The question of making advances to growers is considerably exercising importers, and some firins say that in the nresent outlook they are not disposed to advance above eight shillings. In making the January distribution of cheese the Ministry of Food states that if all is taken up orders will absorb 5000 tons, leaving only 7000 tons on the Government’s hands. Butter is steadily cheapening owing to easier exchanges. Danish butter is being purchased here on most favorable terms. —‘Aus.-N.Z. Cable Assn.