TRADE REVIEW.

Taranaki Daily News, 14 November 1921, Page 5

TRADE REVIEW.

CONDITIONS AT HOME. . IMPROVED TONE. COLLAPSE OF MARK. By Telegraph.—Press Assn.—Copyright. Received Nov. 13, 11.45 p.m. London, Nov. 12. Since the reduction of the bank rate the Stock Exchange has been much more hopeful than for a long time, with a general feeling of optimism. There has not been any marked revival in the volume of business, but an improved tone has manifested i-teelf in the absence of liquidations and an improvement in prices in all departments. Contributing factors to the cheerfulness are satisfactory Board of Trade returns, improved values of rubber and other commodities, and a more hopeful outlook in Ireland, but the principal cause is a reduction in deposit rates, which will stimulate investments in Stock Exchange securities, thus hardening prices, particularly for gilt-edged securities Some recent colonial issues are still at a discount, but are expected shortly to be at a premium. Fluctuations in the German exchange have been the dominating feature of the money market. The Austrian and Roumanian exchanges also participated, both making sfresh low records. French and Belgian exchanges felt the effects of the violent movements, and the downward course of the rupee is also attributed the slump of the mark, Which must seriously curtail Indian exports to Germany. The seriousness of the British trade , slump during the last two years is shown by the Board of Trade return of bankruptcies in 1920. They numbered 2016. ' The liabilities totalled £6,853,308 and the assets £3,048,993 anil creditors lost £5,547,678, compared with £1,971.892 in 1919. During the current year there has been a marked increase in bankruptcies, It is anticipated tlje total for 1921 was equal to 1914, which was 4043, involving a loss of £8,155,673. Bradford wool spinners report fair enquiry. The demoralisation of the mark has practically stopped business with Germany, but there is good trade with other Continental markets and America. A satisfactory feature of the wool trade is the fact that the exports of woollen cloths for October amounted to 7,058,000 square yards, which compares favorably with 7,343,000 exported in October, 1913, when trade was at a normal level. There has been a- steady increase since June, and there is good reason to believe that the bottom of the slump was reached then. It is gratifying to note the improved position is largely, due to increased trade within the Empire, October’s exports to Australia being 700,000 square yards, compared with 289,500 in July. Holland, Belgium and France also contributed to the improvement.

The cold weather during the last few days has stimulated the demand for beef, causing a slight improvement ’in prices, {but otherwise the meat markets are very depressed. Wholesale values are now about 33 per cent, above pre-war prices. With reference to Australian meat exporters’ request for British preferential treatment one of the largest importers says he sees little prospect of any preference being given. If a duty was imposed on Argentine meat the immediate result would be to raise the price to the consumer, and it is doubtful if any Government or politician would take the risk of proposing such a step, which would raise a tremendous outcry about taxing the working man’s food. It is equally unlikely that tne Government would grant a subsidy on Australian importation with the national finances in the position disclosed by the Chancellor of the Exchequer last Wednesday. The importer concluded: “The* best way for Australia to meet Argentine competition is to get the freezing charges and freight reduced.”

The prospects for the metal markets seem favorable. There are indications of revival in the tin plate industry w<Jth considerable activity in the new year, and an excellent demand for tin is anticipated. The copper outlook is also cheerful, the demand from America being well maintained. The prevailing opinion there is that owing to the curtailment of' production, producers are in an excellent position for maintaining or reducing prices. There may be a shortage of refined before six months have passed.—Aus.-N.Z. Cable Assn.