TRADE IN 1922.

Taranaki Daily News, 27 December 1922, Page 5

TRADE IN 1922.

PASSING OF DEPRESSION. THE FUTURE BRIGHTER. VALUE OF EMPIRE MARKET. By Telegraph.—Press Asin.—Copyright. Received Dec. 26, 5.5 p.m. London, Dec. 23. Business on the Stock Exchange was unusually dull even for the week before Christinas, but prices generally were maintained, despite some selling of gilt-edged stock. There was occasional weakness in “colonials,” apparently in anticipation of new issues which are known to be impending, though present conditions hardly indicate that anything will be done in the first fortnight of the new year. One financial writer, however, suggests that holders of Australian loans are inclined to sell, owing to fears that Mr. Hughes may not obtain a working majority. The outstanding feature of the foreign exchange market is the improvement in the German mark, apparently due to a feeling that althougn ilie rumors of an American loan are inaccurate, America will be forced eventually to take a share in the reparation settlement.

Lloyd’s List (an annual review on shipping and commerce) contains an article on the trade outlook by Colonel Olivo Armstrong, ex-president of the Federation of British Industries, who says: For British industry 1922 has been a year of unfulfilled expectations. In the United Kingdom economic conditions generally stabilised themselves, and the country emerged successfully from the trade depression- Wages and prices have come down to what may reasonably be expected to be the postwar level. Money, comparatively speaking, is plentiful, and is obtainable at reasonable rates, yet factories are standing idle, and nearly half a million people are unemployed. BETTER SIGNS. Colonel Armstrong says it is true that the future appears distinctly brighter and conditions are starting sensibly to improve, both at home and abroad, but still the anticipated trade revival has not materialised. The reason is twofcld. Firstly, the world’s affairs have pfcne from bad to worse. The Near Eastern upheaval, Germany’s collapse, the United States’ tariff enactment®, France’s financial position and intranslgient policy, and the collapse or the Genoa Conference have all exercised a psychological effect on international trade, impeding a return of confidence. Secondly, the United Kingdom, after an effort entailing much economy and privation, has succeeded in putting its finances in order, but the majority of the other nations did not follow Britain’s example. He adds: “We are temporarily suffering from the effect® of our own deflation in a world of inflation.’’ After describing the conditions of the Continental. Near Eastern. United States, South America, and Far Eastern markets. Colonel Armstrong refers to the British Empire market, to which the greatest hopes are pinned. Taken as a whole, trade within the Empire shows signs of a general though slow recovery. The outlook is favorable in Canada. Australia and New Zealand. Undoubtedly a substantial development in Empire trade would provide the solution for many of the present difficulties, but two* considerations must foe borne in mind. Firstly, any development must be slow, and, secondly, it is unreasonable to expect to make up at the expense of the Empire the whole balance of trade lost in other markets. Colonel Armstrong concludes: — “Though everything must be done to increase Empire trade, the leeway we have to make up is so great that concentration on the Empire market alone will not be to the best interests of British trade if it results in the neglect of other equally important markets, such as the Far East and South America” OUTLOOK FOR BUTTER. Regarding the butter outlook, one of the leading importers says the consumption has increased enormously owing to retailers selling at twenty pence a pound, a price which does not show anv profit on the wholesale price, and which means that either the wholesale price will have to come down at least 10s a hundredweight or the retail price raised. The multiple shop companies have been selling for the last two months on a falling market without any profit, and will not continue to do so. If. as is probable, they raise the retail price the consumption will be affected, especially as the demand for a fortnight after the holidays is always poor, owing to the working-class families having spent all their money on Christmas luxuries. However, trade seems to be improving and generally the outlook is favorable. Prices are unlikely to fall much or for long. The only’ thing likely to reduce them would be 'a great curtailment in consumption through retailer® raising the price to the public. A feature of the Christmas market at Smithfield is the splendid display of Argentine meat, especially beef, including prize beasts from South American shows, some of which made a shilbng a pound wholesale. Inasmuch as plenty of good quality Australian beef is now available here it is a pity a similar show of Australian beef was not arranged. especially as Australian crops are not actually fetching one-eighth to one farthing a pound more than ehriled South Amari can. This is mainlv due to heavy supplies of South American. There has been the usual Christmas ramp in turkeys, the retail price for best English being 3s 6d and sometimes 3s a pound, but plentiful supplies of French and Italian birds were available at about 2s. Undoubtedly many of these aliens quickly became naturalised and were sold to unsuspecting buyers as British. All kinds of fruit is cheap and plentiful, especially apples, best Americans being obtainable at 10s to 15s a bushel. West End green grocer® are obtaining fancy prices for vegetables. asparagus being a guinea a bundle, French beans 7s 6d a pound, and green peas in pod 8s 6d, all brought from France by aeroplane.—Aus.-N.Z. Cable Assn.