BRITISH TRADE.

Taranaki Daily News, 28 November 1922, Page 5

BRITISH TRADE.

REVIEW OF THE MARKETS. RESTRICTED ACTIVITY. A SLOW RECOVERY. By Telegraph.—Press Assn.—Copyright. London, Nov. 25. The anticipation that the return of the Conservative Party to power would brighten things on the Stock Excnangc has not been realised, and the week has i been dreary and uninteresting. Most j markets are very dull, and some gilt- ! edged securities, notably the longer* 1 dated national war bonds, have eased in price, owing to the recent persistent stream of buying having come xo a standstill, but this is regarded as only I temporary. As it is apparent the re* • covery of trade will be very slow, there ,| is not much likelihood of any great I quantity of money being used to finance I commercial undertakings. ' The bright spot in the market is I colonial securities, of which prices are well maintained, and Argentine and Brazilian rails are strong, in expectation of higher dividends. WOOL SATISFACTORY. The position in the wool trade, as indicated by the opening London sales, is regarded as satisfactory, especially the fact that there has been no serious decline in merinos. This is accepted as evidence of the general soundness of the situation. Another satisfactory feature is the strong American demand for medium crossbreds, which is regarded as due to the. desire to popularise crossbred fabrics for suits. For a long time efforts have been made to induce tailors to use crossbred cloths without success, but now that America is showing the way it is hoped English tailors t will follow, and so reduce the disparity which still exists between the prices of merinos and crossbreds. On this subject Sir Arthur Goldfinch, of the 8.A.W.R.A., replying to Mr. Caird’s j remarks condemning the holding back of wool to secure better prices, says *t is an entirely superficial view of the case to suppose that merino woolgrowers are benefiting only by the scarcity of their article due to a particular fashion, and that their position might be endangered through consumers, disgusted at high prices, turning to the abundant supplies of coarser wool. We are passing out of that stage ot- affairs, and it has long been evident that the conditions in 1923 are going to be totally different. The dominating fact is not that fine wools are scarce, but that all classes of wool are going to be scarce. The statistical position is far too strong to permit any relapse in i price.

Sir Arthur Goldfinch says the only point on which he agrees with Mr. C'aird is the doubt he expresses whether the B.A.W.R.A. shareholders will decide in favour of the.proposals. Sir Arthur inclines to believe the proposal* will be rejected, not on their merits, but because of the natural apathy that exists among farmers everywhere. It is not unnatural that a great number of farmers should think the early distribution of six to eight millions sterling is more attractive than any expectation of future benefits.

Personally. Sir A. Goldfinch would not bo at all disappointed if the proposals were defeated, though he thinks farmers will make a great mistake if they vote in the negative. Banks and broking houses will find, if the proposals are carried, that not any or the existing organisations will suffer any harm. BUTTER SUPPLIES HEAVY. Heavy supplies of butter are in eight. The quantity afloat from Australia, New Zealand and Argentine totals 601.815 boxes. In addition, owing to the decreased Continental demand, heavy supplies of Danish are coming here and filling all the needs of our northern markets. The Argentine supplies are increasing greatly, and whereas last year about 20 per cent, of the Argentine production was taken by France, Belgium and Holland, we are now getting all the Argentine’s exports. As the contracts made are now self-sup-porting, it is evident our supplies exceed the present rate of consumption and prices must be reduced in order to stimulate the demand. Australian eggs are finding a rather unsatisfactory market. Ten days ago they realised* about 255; now they have very slow sale at about 20s to 235. The decline is largely due to heavy arrivals of Argentine, of which the best are at about 17s. others 15s. The outstanding feature of the metal market is the decline in spelter. Recent high pricefl brought American sellers on the market. Thev sold about 10000 tons for forward shipment and may offer more. If so. prices will go lower, but the statistical position remains sound. It is said producers are now holding off in anticipation of a recovery in the market.