The Daily News. WEDNESDAY, NOVEMBER 29, 1922. THE TRADE OUTLOOK.

Taranaki Daily News, 29 November 1922, Page 4

The Daily News. WEDNESDAY, NOVEMBER 29, 1922. THE TRADE OUTLOOK.

The latest review of British trade is mainly devoted to the position of affairs concerning wool and butter,' and as these commodities are the staple produce of the Dominions, the movements in markets should be of much interest tc producers. It may seem extraordinary that politics should have any marked effect on trade and finance, but experience has proved there is an intimate connection be tween them, and it is significant that the London Stock Exchange, instead of showing decided signs of activity consequent on the return to power of the Conservatives by a large majority, should exhibit dullness and dreariness. The gratifying feature of Stock Exchange operations is the manner in which the prices of* colonial securities are being so well maintained. On the other hand, it is apparent that recovery of trade will he very slow,, and probably very fluctuating, so there -does mt appear to be much likelihood of any great quantity of money being used to finance commercial undertakings, the consequence being that money w’ll accumulate awaiting investment, and. as usual, gilt-edged securities will be in favor. That is by no means advantageous to trade and industry, as it indicates a want of confidence that is detrimental to the employment of capital in ways that, would be for the welfare of the Empire. Possibly when a settlement of Near East affairs is arrived at, a change for the better will take place. With regard to wool, the prospects have much improved, and the most pleasing feature is the increased demand and higher prices for crossbreds. This movement is due to America showing the way to utilise crossbred cloths, and the hope is expressed that English tailors will follow the American example and so reduce the disparity which still exists between the prices of merinos and crossbreds. The woolgrowers in the Dominion should be much pleased with the improved prices obtained of late, both here and in Britain, for crossbreds, and at the keenness of competition at. the sales, the average increase at the recent sales at Napier being about fourpence to fivepence on crossbred and a penny to twopence on inferior and shabbier wools, the principal buyers being America, Germany, Japan and France, and particularly America. Such an encouraging start for the new season’s clip augurs well for the future. Taranaki dairy farmers will naturally be most interested in the outlook for butter, and they will doubtless note that there are two factors which appear likely to contribute to a decline in prices. Firstly, the supplies on the British market, and in sight, exceed the present rate of consumption, and, secondly, that, owing to decreased Continental demand, Danish supplies have been diverted to the northern markets of Britain, while Argentine exports are greatly increasing owing to the same cause that, is operating in the case of Danish supplies. Tb“

inexorable law of supply and demand is bound to govern the price of butter. For the time being, cheese appears to be on a good, wicket, and with improving prospects. if the market is not glutted. Dairy factories are generally faced with the uncertainty as to whether butter or cheese will return the better financial yield. That is why they need reliable guidance from expert advisers on the overseas markets. On the whole, the outlook for dairy farmers is by no means discouraging.