BRITISH TRADE.

Taranaki Daily News, 31 October 1922, Page 5

BRITISH TRADE.

BEAL REVIVAL AHEAD. EXPECTED NEXT YEAR. COLLAPSE OF EXCHANGE. By Telegraph.—Press Assn.—Copyright. London, Oct. 28. The continued demoralisation of the mark, the lira, and the French and Belgian franc is having a serious effect, not only on the foreign exchange market, but also on the Stock Exchange and, worst of all, on our export trade. The depreciation of these currencies places Germany, Italy, France and Belgium in a favorable position to compete with British exporters, by making it easier for those countries to sell their products abroad, but Hmre difficult to purchase from us. Thus the revival of our trade is hindered, and similarly that of other countries with comparatively stable currencies which depend for prosperity on the maintenance or ! foreign trade. The decline of the French frhne > appears to be chiefty due to the growing appreciation of the country’s serious financial position, and the more general recognition by the French people that little is to be hoped for from Germany, ah unpleasant fact which at last is being acknowledged by the French newspapers, who hitherto have blinded themselves to what other nations saw already. PROBLEM OF THE MARK. The collapse of the mark appears momentarily to have been arrested by the decision of the Reparations Commission to proceed to Berlin again to study the conditions, but no real and permanent improvement is likely until practical measures have been adopted to stabilise the mark. With exchanges in this positioii it is not surprising that the foreign section of the Stock Exchange has been seriously disturbed. Large sales of foreign bonds emanating from Paris caused a weakness all round and, although an improvement in the franc caused a slight rally yesterday, the markets are still depressed. Busihees on the Stock Exchange generally is suffering from the effects of the general election, wfhich is in full swing. Dealings have been on a small scale, but without any material decline, though the gilt-edged market was somewhat taken aback by the unexpected issue of the Indian loan for twenty millions. Regarding the future, a yvell-inform-ed financial writer says: “There is no doubt that the Stock Exchange ia fully aware of the real revival of trade which appears likely to develop in 1923, as in all the leading centres of the world the supplies of Wnished Materials have been brought to levels that will mean a shortage before long. The world’s crops are excellent and the impetus to trade is likely to be considerable. No sharp rise in money rates is probable and there is plenty of money available to finance the trade movement.” THE WOOL MARKET. Regarding wool, Mr. H. Dawson writes: “The sensational prices realised for merinos were almost entirely due to scarcity rather than to new demand from consuming The position undoubtedly requires caution and cool judgment. ‘ The great question is whether business in textile goods can continue to be prosperous at such advanced prices. The preference for soft fine goods has been so universal that there has been justification till now for appreciated values, but consumers are beginning to find an interest in the cheaper article. This movement is bound to be slow and gradual, but already the disparity between merinos and crossbreds haa been greatly reduced and the levelling-up of crossbreds has begun. It would almost appear the crest has been reached. . The strength of merinos on the market is all the more remarkable when it is considered that the continental section has been seriously hampered during the past series on account of the constantly falling franc and mark. It has been a great tribute to the strength of the industry that French and Belgian buyers are able to operate under these adverse conditions. Germany has been quieter than usual. Yorkshire, however, has shown remarkable activity, especially in all crossbred sorts, thanks to the depletion of stocks at Bradford for export account. The signs for continued prosperity are all favorable, if the edifice does not topple over bebause of the unsupportable prices. Consumption has been wonderfully maintained, including the United States.”