BRITISH TRADE.

Taranaki Daily News, 25 July 1921, Page 5

BRITISH TRADE.

MORE CHEERFUL TONE. BUTTER AND CHEESE. favorable prospects. Ey Telegraph.—Press Assn.—Copyright. Received July 24, 5.5 p.m.

London, July 23. The reduction of the bank rate caus|ed a more cheerful tone on the Stock Exchange, with improved quotations far .gilt-edged securities, but- those who anticipated an increase in business have | been seriously disappointed, for all secI tions remain dull, especially industries. !to which cheaper money might have i been expected to give a stimulus. Optimists are looking forward to a further reduction to five per cant, before the autumn demand for money commences. If the reduction occurs we may see a recovery of activity, but in ! the meantime there is no indication that investors are departing from their recent attitude of locking up money in fixed i interest securities, rather than speculative investments. The feature of the Stock Exchange is the firmness of recent gilt-edge issues, many of which were; at a discount. but arc now quoted at substantia] premiums, owing to the Treasury’s embargo on new trustee issues while the Government’s new bonds are under offer. Interest in the foreign exchange market centres round the dollar. The recent slump in American exchange is attributable mostly to speculative buying in dollars here and sealing in sterling at New York. This is likely to increase the dollar supply in the autumn, wh?n the trade demand will be very strong. The prospect's for the forthcoming Australian and New Zealand butter season appear very favorable and traders anticipate a strong market till March. Owing to the drought the English aut- ! put has ceased exceptionally early, com- | pelling Devonshire, Somerset and other dairying centres to buy ‘ Government butter instead of marketing their own. Similar conditions have caused a shortage of American supplies and if the ex change position remains as at present America is likely to buy large quantities in the near future. The drought in Europe has forced France. Germany. Switzerland, Norway and Sweden to buy Danish butter; oven Austria and Jugoslavia are finding money to purchase Danish. Some Continental buyers are also taking Australian and New Zealand butter from the British Government’s stocks and several hundred tone have already gone to the Continent. It is estimated the Government stocks arc now about 35,000 tons, which is likely to be exhausted by mid-October. After that we must be almost entirely dependent on supplies from Australia and New Zealand.

The outlook for cheese is equally satisfactory. The recent set-back is largely attributable to the heated condition of one or two recent arrivals from ! New Zealand and Canada, which were offered at low prices, but the effects of the drought here are permanent and ko matter how much rain falls no producton must bo far below requrements, especially as the heat has caused a largely incresed consumption oi cheese in preference to meat. Yorkshire wool manufacturing trader are not showing much sign of revival, though a few mills are running full time, principally to work off arrears. No general increase in activity is possible till new orders arrive on a much larger scale, but some mprovement. may be expected from the lower cost of production, duo to a revised combing tariff and a reduction in wages, as some wool has been held up pending the adjustment of combing barges. Germany is a serious competitor in this branch of the industry and most German combing factories are busy and are fully booked up for half a year. French mills are aho active, while a large number of Bradford plants are ’die. Germany is also buying largely tops and noils from France and Belgium. Messrs Creglinger, of Antwerp, report that Germany has been the dominating factor of the top market and is able to quote comparatively low prices for dress goods.—Aii3.-N.X. Cable Assn.