TRADE REVIEW.

Taranaki Daily News, 25 January 1921, Page 5

TRADE REVIEW.

CONDITIONS IN ENGLAND, BUTTER MARKET DECLINING. ‘ FURTHER FALL EXPECTED. ' By Telegraph.—Press Assn.—Copyright. London, Jan. 22. The Stock Exchange maintains a cheerful tone with a certain amount of buoyancy. Business has been active in first-class investment stocks, and its volume has increased considerably. The demands for investment securities is due largely to the expectation of cheaper money. Depositors have been withdrawing money from the banks in order to purchase stocks at the recent low level,’ at which they show a good return on the capital outlay, with the prospect of a considerable increase in value if the bank rate falls. There has been much talk of an early reduction of the bank rate, especially on th*e stock exchange, but good authorities do not anticipate a reduction before the end of the financial year on March 31. In any case, it is improbable that monetary conditions will change materially until the deflation movement has terminated, and a revival of trade is at hand. The strength of the gilt-edged section of the stock exchange is illustrated by the fact that prices advanced, despite the competition of a new issue of a 15million local loan at 3 per cent., the stock being issued at 50. This has been largely over-subscribed, whereas of the previous issue a few months ago 70 per cent was left on the underwriters’ hands. EXCHANGE RECOVERING.

Foreign exchange movements continue satisfactory, the tendency being for all exchanges to move towards normality The American, French, Belgian, Italian, and German exchanges are all recovering. The last-named ia now at 2.30. The difficulty of obtaining remittances from Australia continues to provoke much unfavorable comment. The Money Market Review says that the Australian Government is largely responsible. When Australians were receiving, large sums from Home for commodities they were encouraged to embark on all sorts of unjustifiable extravagances and immediately after the war merchants imported large quantities of luxuries, instead of first restocking with necessaries like pottery and hardware, with the result that the Australian shops are icplefe with goods nobody can afford to buy, while urgently needed goods cannot be brought into the country because there is no colonial money in London to pay for them. The freight markets continue to drop and many owners in the Eastern trade are laying up steamers. Although bunker coal at the Tyne has fallen from 75s to 47s fid in a month, owners say thej still cannot make ends meet. Australian steamer fixtures for wheat, March-April, range-from 80s to 77s 6d. WOOL MARKET BETTER. The wool market shows a better tone. The all-round lowering of Government reserves is having a beneficial effect. The London wool-brokers’ committee call the closing prices at the Government sales for better merinos 20 per cent, below December Bradford inquiry for tops is improving, and merino quotations are firmer. Users’ stocks are very low, they having delayed buying till the last moment. Yarns are very quiet and unchanged. Piece goods are dull. There are huge stocks to liquidate which constitute the main trouble in the trade. There is increased activity amongst United States’ wool buyers, but it is due to speculation, in the expectation of a new tariff rather tjian to manufacturers’ demands. The knowledge that Australia hopes to ship 1,250,000 cases of apples, and New Zealand 100,000 cases is causing the fruit trade anxiety. Apparently the United States and Canadian supplies will not be anything like exhausted when the Australasian supplies commence to arrive. reported that the Americans are holding large quantities of the best quality apples to reach England in May. At present the supplies are ample, and excellent apples are retailing at 6d per pound. The butter market is steadily declining, and supplies are well maintained. The Food Controller announces a reduction of 4d in the retail price to 3s at the beginning of February, and the removal of rationing The expectation is that prices will be further reduced before long, as heavy quantities of Australian and New Zealand are expected to arrive in April.—Aus.-N.Z. Cable Assn. ANTI-DUMPING BILL NEEDED. Sydney, Jan. 24.. Mr. McGregor, British Trade Commissioner, stated that Germany was making determined efforts to resume her pre-war trade relations with the world. There was a growing feeling in England in favor of an Anti-Dumping “Bill to protect the British dye industries and prevent the flooding of British markets with goods from European countries whose exchange had collapsed. generally admitted that the difficult financial position between England and Australia would continue for two or three months. The banks meantime were doing everything practicable to relieve matters.