TRADE BRIGHTER.

Taranaki Daily News, 6 March 1922, Page 5

TRADE BRIGHTER.

BACK TOWARDS NORMALITY GRADUAL MOVEMENT. CONDITIONS IN BRITAIN. By Telegraph.—Press Assn.—Copyright. Received March 5, 5.5 p.m. London, March 4. After the recent feverish activity in the gilt-edged department of the Stock Exchange there has been comparative quietude during the past week. The general buying movement received a check from the uncertain political outlook at Home, and the shipbuilding and engineering deadlocks, and consequently there has been a disposition to secure some of the substantial profits accrued during the recent upward movement. But the undertone remained distinctly good, and there has been little abatement of the keen demand for first-class securities. The firmness of these has been increased by a rumor current that the Government will shortly put on tap 4£ per cent. Treasury bonds at ninety-nine. This is not confirmed, but it is believed to be an intelligent anticipation. There is talk of the early reduction of the bank rate to 4 per cent. Everything points to a steady improvement in Government credit. The manner in which recent good issues have been oversubscribed seems to suggest that investors are fully aware that they may have to be content with a yield of 4J per cent, on irredeemable Government securities.

The opening of the wool sales on Tuesday is awaited with much interest. The general impression is that they will open about 5 to 7£ per cent, below the January closing rates, and if values are stabilised about that basis another buying movement may possibly develop. Thus, it is believed, a fair amount of business at Bradford is being held up pending the result of the London sales, and if 64 tops can be produced at about 46d or 47d a strong home demand will arise.

A satisfactory feature is an improving outlook in the piece goods section of the industry. There is more inquiry, especially for soft handling fabrics, but a reduction in the cost of production is urgently needed. In this connection the remarks of the chairman of one of the largest clothing firms in Leeds are interesting. He said there is a steady improvement in both the home and overseas trade, except where the exchange rate is adverse. Orders are well ahead of last year, and they have been working full time for three months, compared with three days weekly a year ago. If there are no acute labor troubles he looked forward to continued expansion. Other reports from Leeds are hardly so optimistic, and state that not many businesses are in such a fortunate position, and prices are far from satisfactory, leaving little working margin. A definite improvement is impossible until the conditions of the export trade are more stable. The metal markets generally show an improved tone. Firmness in copper is due to an increasing consumption in America and a good Continental demand. Both France and Germany are buying freely, and the consumption appears to be well above the production. Substantial inroads are being made into existing stocks, but production is likely to increase in the near future, some mines being reopened, while probably the increase in output will enable production to keep pace with consumption. The position of tin is also favorable. The tin-plate trade at Pittsburg is very good, and the production for 1922 is expected to equal any year in the history of the industry. Therefore America is likely to buy largely; but the consumption in Britain and on the Continent is very poor, and heavy accumulations in the Dutch East Indies and China are overhanging the market. The general trade report from official sources says that since the turn of the year there has been a steady if restrained extension of a more optimistic feeling, which has shown itself during the preceding two months, with a continuance of the movement towards normality, though slow and gradually. There is an increasing number of inquiries, and also promise of extensive Government economy, all contributing factors towards a brighter feeling, despite the fact that actual business has shown only a moderate improvement. Certain industries and trades, however, report definitely improved conditions, with more and larger orders, while owing to falling costs of production there is a feeling of greater security on the part of both manufacturers and buyers in regard to future prices.—Aus.-N.Z. Cable Assn.