AMERICAN TRADE CONDITIONS

Taranaki Daily News, 1 April 1921, Page 3

AMERICAN TRADE CONDITIONS

SIGNS OF IMPROVEMENT. The position of trade generally in the United States shows signs of a gradual improvement. This is the report in a circular dated February 7, frvm John Dunn, Son and Company, of New York, forwarded by Messrs. Brown and Dureau’ Ltd., the Australasian agents. The foremost sign is stated to be slow returning confidence, at present tempered witli caution, but as each week passes assurance is gaining. “An easier tone is discernible in the money market,” states the report, “although actual results have not fallen to any great extent. The banks are working into a stronger position and domestic credit situations show marked improvement. Practically all of the foreign exchanges are higher, the advance in sterling and francs being particularly marked. Failures are less important, and in some lines of trade, such as textiles and leather, whirj liquidation was most severe, activity is being resumed.” The matter of liquidation of retailers’ stocks is, however, stated to be proceeding slowly, small merchants as a class, seem disposed to rid themselves of goods now on hand quite thoroughly before replenishing. The pressure of banking advice and public opinion has little effect in hastening this much-needed movement, and fear is expressed that the period of re-buying, by being too long delayed, may develop to such importance as to cause a second period of inflation. Some commodities have declined to what appears bedrock prices, while others continue to be held at 100 to 200 per cent above pre-war levels. Wages cannot be brought down to any great extent until the ultimate consumer receives the full benefit in the decreased price of commodities.