TRADE REVIEW.

Taranaki Daily News, 4 April 1921, Page 5

TRADE REVIEW.

INFLUENCE OF .COAL STRIKE. WOOL MARKET QUIET. FREIGHTS VERY FLAT. By Telegraph.—Press Assn.—Copyright. Received April 3, 5.5 p.m. London, April 2. Under the influence of t'he coal strike, the Stock Exchange is lifeless. There has been little business since the holidays, but there is no panic, the belief being that commonsense will ultimately prevail. A feature of the Stock Exchange nowadays is the absence of the speculative spirit, and a consequent diminution of business. Mining, oil and rubber shares are all neglected, investors’ motto being “safety first”. In this connection it is interesting to note that new capital issued for the first quarter of 1921 amounted to £61,299,800, compared with £136,094,500 for t'he corresponding period last year, and £97,610,200 for the first quarter of 1914. Of the 1921 total over half consisted of Government and. corporation stock. • The Bradford wool market is very quiet. Sixty-fours are quoted nominally at about three shillings. Most mills are practically closed, as American orders for tops and yarn wools are almost completed and khaki orders finished, while there are no new orders reaching the market. The piece goods trade remains stagnant, and sales are very slow, despite extremely low quotations. Good botany blue serge is offering at 11/- a yard, compared with 35s in the beginning of 1920. In some cases there is “cut-throat” competition for orders, but without success.

The financial stringency continues, with extreme caution and much apprehension, as the continuous fall in values has made a readjustment of stocks most difficult. Things are now at their worst, and the only hope for alleviation lies in lowering the costs of production. The prospects for the London sales, opening on Wednesday, are not encouraging. The German demand has greatly reduced owing to the sanctions, the United States is out of the market, and the home trade is absolutely stagnant. Buyers, therefore, welcome the reduction in the quantity offering; but as it is understood the limits will be increased about fifteen per cent, above present values, the withdrawals will probably be heavy, though cheap lots may meet with demand. The freight market is very flat. Fixtures for Australian wheat for AprilMay at 60s, and for May-June at 67s 9d, have been made. The metal markets are adversely affected by the coal strike, which checked the advance in copper, just when a considerable expansion of consumptive enquiries made the outlook promising. The same remarks apply to tin, for which the demand from the consuming centres is very disappointing. Reports from Malay state that the Government stock is 10,000 tons, and low prices are likely to cause the closing of all Chinese mines, which cannot produce at present values. Even the best equipped mines are only making small profits. It is estimated that the MalayUß production will decrease 50 per cent, unless a recovery in prices occurs in the near future. Spelter consumption continues small, and the weakness of the market is increased by heavy German shipments to arrive before the Reparation Bill comes into force on the 15th instant.

The coal strike is viewed with complacency by the Lancashire cotton epinners and manufacturers, who mostly have sufficient coal to keep their machinery running for a month. Should the strike last longer, and cause a reduction in the output of cloth and yard, they will appreciate in value.—Aus. and N.Z. Cable Assn.