TRADE REVIEW.

Taranaki Daily News, 12 July 1921, Page 5

TRADE REVIEW.

CONDITIONS IN BRITAIN, FALLING OFF OF TRADE. SET-BACK FROM THE STRIKE. By Telegraph.—Press Assn.—Copyright, Received July 11, 5.5 p.m. London, July 9. Owing to the heavy applications for Treasury bills money has not been over plentiful. The withdrawal of six-month bills caused bewilderment. Mr. Chamberlain’s announcement of a new issue of Treasury bonds maturing in 1929 depressed the market for gilt-edged stocks. The market did not welcome the itsue, but a reaction followed, based on hopes that the new loan would operate in the direction of further reducing the bank rate. The Economist declares that the issue is inopportune on the eve of the holiday season, and expresses the opinion that the worst obstacle is the discredit in the matter of expenditure from which the Government is suffering, resulting in the belief that further lendings to the Government are likely to encourage extravagance. Tenders for Friday’s offer of 55 millions of three-month Treasury bills amounted to 117 millions. The average rate of allotment was £5 3s 6d, the lowest rate of interest since the resumption of tenders. The volume of business on the Stock Exchange continues small. The hopes of a revival ba :ed on the industrial settlement and the reduction of the bank rate have so far been The Board of Trade returns strikingly demonstrate the exceptionally difficult position into which trade has drifted owing to the cumulative effects of the coai strike and the falling commodity values. The half-yearly totals show a decrease in exports, compared with 1920, amounting to £354,000,000. Inh ports similarly declined £481,000,000. May and June were the worst months experienced for years, exports falling for the first time below the pre-war level, though prices have not returned to anything like normal. Figures .showing the quantities instead of the values of trade more strikingly demonstrate the falling away compared with the pre-war volume. The settlement of the strike gave rise in some quarters to an immediate revival of trade, but the improvement will necessarily be gradual. Iron and steel bars can still be imported from Belgium at £3 per ton less than Welsh prices. Some authorities express the opinion that a full revival is impossible until coal is available at 22s per ton, instead of 455, which is the best possible under the coal settlement, despite the subsidy. Nevertheless, iron and steel companies are making great efforts to re-establish trade. The cotton and wool wages settlement has provided a more hopeful tone in textile trades, but the wool combers’ failure tc reach an agreement as to commission charges still bars progress in the direction of stabilising industry. The Bradford market- fs quiet, awaiting Monday’s sales. Twenty thousand bales of B.A.W.R.A. wool were offered at Hull on Friday. Merinos declined 10 per cent., and crossbreds were par to 5 [ per cent, lower, both compared with the last London sales. Three-quarters of the offering was sold, French and Belgians taking the bulk. Australian wheat freights are steady. The Port Sea accepted 5500 tons of Western Australian wheat to Britain at 62s fid. RETURN FOR MONTH OF JUNE. BIG DECREASES REPORTED. London, July 8.

Board of Trade returns for the month of June show that imports decreased by £82,083,206; exports by £78,209,112: and re-exports by £13,041,164. The principal decreases in imports are: Cotton, £11,570,742; wool, £7,34fi,. 486; flour and grain. £4,601,709; other food and drink, £9,913,299. The chief decreases in exports are: Coal, £7,920,140; iron and steel manufactures, £8,750,639; cotton yarns and manufactures, £27,838,171; woollen and worsted yarns and manufactures, £9,-269,962.—-Aus.-N-Z. Cable Assn,