TRADE REVIEW.

Taranaki Daily News, 18 May 1921, Page 5

TRADE REVIEW.

CONDITIONS IN BRITAIN,

INFLUENCE OF THE STRIKE.

WOOL AND BUTTER OUTLOOK.

Bj Telegraph.—Prees Assn—Copyright. London, May 14.

Business on the Stock Exchange has been restricted, with prices irregular. The favoral’j effect of Germany’s acceptance of the Allies’ demands has been counter-balanced by fears of the continuance of the coal strike and further industrial dislocation.

But for these (fears there probably would have been considerable activity, for there is evidence that the investing public is on the look-out for both investment and speculative securities. Despite the anxiety arising from the labor troubles gilt-edged securities have fairly maintained their position and foreign bonds have rallied on the improvement of the exchange rates with France. German bonds are noticeably firmer. Home railways are dull under the strike menace, rubbers sluggish and oils fairly active. Colonial hanks are meeting with continued demand.

THE MONEY MARKET.

The money market is feeling the effect of the coal strike. With trade stagnant in every direction and money becoming idle commercial bills are scarcer and scarcer, and it is possible to discount them on finer terms than Treasury bills. The foreign exchange market has been feverish, with violent fluctuations. Large purchases of francs and lire have been made in expectation of Germany’s acceptance of the reparations terms. Profit-making sales followed and the market has now steadied. The rise in the sterling in the United States is attributed to a variety of reasons, chiefly the heavy imports of gold into the States from Europe and the large American demand for European currencies, principally francs, and the decline in the demand for American products.

THE WOOL POSITION.

Following the advance at the London wool sales there has been a general hardening of the values of tops at Bradford and apparently a fair amount of business has been put through, but the improvement has not yet reached the yarn and piece goods sections, in which there is little new business, though the tone all round is decidedly better than a few weeks ago. The shortage of coal is a serious obstacle and many mills are closed altogether and cannot resume till coal is available.

Apart from the coal trouble there are signs of better trade ensuing and more stable conditions being established and confidence is beginning to return. The world’s clothing needs are still far from satisfied and all that is required is a return to political and industrial peace.

THE BUTTER OUTLOOK.

The butter outlook is not promising. Hardly a box of the Government’s huge stocks is selling and there is little prospect of them doing so while the coal strike and unemployment continue, so there is every likelihood that there will be a large quantity unabsorbed when the new Australian commences to arrive. It appears inevitable that the British Gov. ernment must make a heavy loss.