TRADE AND FINANCE.

Taranaki Daily News, 13 November 1922, Page 5

TRADE AND FINANCE.

CONDITIONS AT HOME. ti —— GOOD TONE CONTINUES. PROBLEM OF EXCHANGES. Bv Telegraph.—Press Asm.—Copyright. Received Nov. 12, 5.5 p.m. London, Nov. 11. Many things have contributed to a feeling of uneasiness on the stock markets, notably the renewal of excursions and alarums in the Near Easr, the chaotic state of Continental exchanges, and the near approach of election day; but despite all adverse factors, the Stock Exchange has maintained an optimistic feeling and the gene ral tone has retained a comparatively firm character. Lord Curzon’s speech on Thursday had a reassuring influence, and though foreign securities, especially French, have naturally shown some weakness, gilt-edged generally have developed strength, a noticeable feature being the support given to Colonial Government stocks. The attitude of the Stock Exchange is well described by a financial writer, who says the disposition of the market has been to ignore all unpleasant factors and emphasise every favorable point, like low money rates, the abundance of funds awaiting investment, and even to place a favorable interpretation on the unsettled condition of Europe and the Home political crisis. The point has been made that the disturbed economic and political conditions on the Continent will serve to hinder any revival of international trade, and therefore tend to per petuate easy money conditions. Another writer says the confident feeling that, so far as our own trade and industry are concerned, we have in prospect much better times next year and a bumper year in 1924, is undoubtedly the sustaining influence; and in the light of this week’s events, it would seem that only an actual outbreak of hostilities in the Near East would cause any serious break in prices. Even that is doubtful, provided England and France stand together, as any trouble should be easy to cope with and easily confined to a narrow area. •

The unsatisfactory condition of the French and Belgian exchange is generally regarded as due primarily to the unfavorable position in which Germany, by her virtual default in reparations, has placed the finances of these countries. Both have been looking forward to large German payments in cash and kind to repay the cost of the reconstruction of the devastated areas. This work has been pushed on, and large sums borrowed for this purpose. In the present position of Germany’s finances there is little hope of any cash payments in 1923. France is making vigorous attempts to stop the downward movement, but, unfortunately, the slump has come at a time when France is compelled to make heavy purchases in foreign currencies to pay for wheat imports. The striking rise in cotton is attributed to the reduced estimates of the American crop, increasing exports from the United States, and greater activity in American textile centres. The question of supplies is causing uneasiness. It is estimated the United States’ yield this season will not exceed ten million bales and the consumption last season totalled 12,800,000. Higher prices are the difficulties of Lancashire spinners and manufacturers, as it seems impossible to get buyers of cloth for Eastern markets to pay the advances required, and therefore everything points to a reduced consumption of manufactured goods. The canned fruit trade continues depressed. The firmness in the dried fruits market has passed away and prices generally are easier. The shortage of cheese continues. The arrival of the Armagh’s 3000 crates of Australian was welcomed and all large cheese was promptly sold, but loaf cheese is only saleable at a price several shillings below other. Loaf cheese is quite unsuitable for the English trade.—Aus-N.Z. Cable Assn.