TRADE REVIEW.

Taranaki Daily News, 18 April 1921, Page 5

TRADE REVIEW.

SOME BRIGHTER SIGNS. WOOL TRADE RECOVERING. EASIER FINANCE CONDITIONS. By Telegraph.—Press Assn.—Copyright, Received April 17, 5.5 p.m. London, April 16. Under the influence of the threatened strike business on the Stock Exchange has been very dull, but there. was no pressure to sell, nor a serious dec ie even in railway and industrial stocks, though naturally the tendency has been downward. What money is coming into the! Stock Exchange for investment is seeking channels outside those affected by the Home labor troubles; hence the noticeably improved prices in many foreign Government and municipal bonds, colonial and foreign banking shares, and the steadiness in colonial Government bonds.

General satisfaction is expressed on the money market at the Government’s reversion to the old plan of tendering for Treasury bills, of which 50,000,000 will be offered on Thursday. The new departure is regarded as virtually meaning the de-control of the money market by the Treasury and a step towards a freer market in money. The announcement is taken as another step towards the reduction of the bank rate, which many business men have been urging for a long time, and which many banks now favor. The general impression ia that it will oe reduced directly the present crisis is over.

The wine trade review anticipates that the Budget will remove the ad valorem duty on sparkling wines, to be replaced by taxation on a sensible basis. The ad valorem, duty has been an absolute failure from the point of view of revenue, and has done enormous injury to the wine trade with France and other countries.

The prices of Government stocks of first and seepnd grades of Australian butter have been raised 6s a cwt. New Zealand prices are unchanged, while Argentine prices have been lowered 9s. Traders anticipate business will be slow in the immediate future, as retailers mostly bought largely early in the month in anticipation of a strike.

A well informed authority in the wool trade considers that, though the immediate outlook is menaced by the industrial strife, which threatens to strangle business, there is no doubt that the real state of the wool business is gradually becoming healthier, and the under-current of influence making for an improvement will gather force, and ultimately lead to the recovery. Stocks of merinos, fine crossbreds and tops at Bradford are very low. Gradual liquidation is proceeding in every section of the trade, and with the removal of the old high-priced goods the way is being cleared for replacement on safer levels. The financial difficulties are being readjusted after the disorganisation and anxiety caused by the sudden drop in values, and the settlement of the excess profits duty accounts. The costs of production and freights are gradually decreasing, and there are signs of easier financial conditions. The progress of all these factors has been slow, but the general trend is towards relief. The metal markets, under the influence of the strike •menace, are nearly at a standstill, and there are few ” transactions. This provides no real criterion of trade conditions, and only the fact that prices are cheap prevented a further decline in the demand' by consumers. Tin and at very low ebb, but the re-opening of several tin plate works gives promise of expansion, if Labor permits.—Aus. and N.Z. Cable Assn.