TRADE REVIVAL.

Taranaki Daily News, 29 May 1922, Page 5

TRADE REVIVAL.

FIRST SIGNS APPEAR. I-- - - BEGINNING IN AMERICA. BETTER ENGLISH TONE. By Telegraph.—Press Assn.—Copyright. Received May 28, 5.5 pjn. London, May 27. The reversion to the pre-war system of dealings on the Stcok Exchange, and the lengthening of the days of business by an hour, have so far brought little benefit to members, for all markets are inactive. The public is showing no disposition to avail itself of the carrying-over facilities, and very little business is passing, except what would ordinarily be done for cash. This is partly due to the refusal by many firms to do contango business, and partly because after eight years’ dealing for cash the public is not yet familiar with the method of contangoing. The Stock Exchange does not expect much contango business till business in speculative stocks revives. An interesting feature has been the flotation of a Straits Settlement Loan of £4,200,000, at 4j per cent., at 95, terms which are almost identical with the New South Wales recent issue. The Straits loan proved even less attractive to the public than did the New South Wales one, for underwriters were left with over 95 per cent., the public subscription only amounting to £75,000. The newspapers regard this as an indication that the public are of opinion that the time is not yet ripe for the issue of colonial loans on these terms, which borrowers will have to revise if they wish to attract subscribers. There are increasing signs of a revival in trade at hand, notwithstanding adverse influences like the Irish unrest, labor difficulties, the complicated European political situation, and uncertainty regarding Germany’s reparation payments. These seem outweighed by favorable factors, notably cheap money, increased shipping activity, as shown by heavier entrances and clearances of cargo at the ports of the United Kingdom and reports from world-wide trading centres of a reduction in stocks of raw materials and finished goods to more manageable proportions. Unemployment and short-time working in the United Kingdom, though still on. a considerable scale, are lessening, and employment shows an increase in nine out of thirteen leading industries in the United States. As the newspaper The Statist points out, a business revival is usually heralded by increased speculative activity in stocks and commodities, a cessation of the fall in commodity prices, and a plentitude of loan money at low rates. These three conditions have been fulfilled. For some time past the effect has been more noticeable in New York than here, and as the depression originated in the East and came here via the United States, we should probably look to those countries for the not noticeable in Japan, but it is clearly first signs of its passing. Such a sign is discernible in the United States. The New York Stock Exchange shows more pronounced activity throughout its whole list than in 1921, and there has also been a much-increased demand for stocks and shares in London and the provinces, with a rise in quotations. Despite heavy arrivals, the apple trade for all sound fruit continues satisfactory, with a brisk demand. Unfortunately the conditions of many cargoes leaves much to be desired, and prices raelised for them cannot be remunerative. Pears are also in very variable condition, many arriving almost worthless, but the few really sound ones are bringing excellent prices. Many importers are pressing for the compulsory pre-cooling of both apples and pears prior to shipment. They consider it hopeless to expect fruit to arrive sound when put on board at a temperature of a hundred degrees. It is possible the underwriters may insist on pre-cooling as a condition for granting policies.—Aus.-N.Z. Cable Assn.