BRITAIN'S TRADE SLUMP.

Auckland Star, Volume LI, Issue 249, 18 October 1920, Page 5

BRITAIN'S TRADE SLUMP.

CONTINENTAL FACTORS. STAGNANT WOOL MARKET. LONDON", October 17. I'ndcr the influence of labour and inuncial difficulties, especially the coal *trike, a downward trend is noticeable in almost every department of the Stock Exchange, with a particular weakness in more speculative shares, but taken as n tvhole investment stocks are holding their own remarkably well, and there is no inclination to realise. Financial .■i it lea generally expect a speedy settlemilit , of the strike, "but a dangerous factor is dint foreign exchanges are moving iigainst us, for a strike renders Britain more than ever dependent on foreigner? for supplies, while we cannot export in return. The money market is working better on the knowledge that sales of Treasury Bills lately have considerably exceeded those maturing, but the general trade position does not stimulate the demand for bills. There are several disturbing elements in the trade position, notably failures at Amsterdam, in Java, and at ( hristiunia. the trouble of a Mincinu Lane firm and the limited moratorium in Cuba, all more or loss due to overspeculation in sugar, rubber, and other commodities. The position in many neutral countries is causing alarm, particularly in Scandinavia. During the war neutral countries made huge profits out of supplying belligerents. Many new firms started and indulged in wild buying of commodities, forcing up prices unduly. Since the armistice the value of these articles has steadily declined Many speculators are now burdered with large stocks of goods which are unsaleable except at a heavy loss. Regarding wheat, "Bathgate's 'Review' 1 says that though the corner has nof yet, been definitely turned the outlook for supplies has improved. In addition to South American, Australian, and Indian shipments, Manchurian export* of wheat and flour are assuming con siderable importance. If developments there proceed at the same rate as during the last few years Manchuria may be expected to exercise a considerable influence on the world's markets. Chinese Hour to-day was the cheapest and was obtainable anywhere, being landed here i:t many shillings per sack cheaper than flour can be bought from any other exporting country. The Bradford wool industry remains stagnant. There is a little inquiry foi tops, mainly on German account, but insufficient to have any effect. Th€ piece-goods trade is very slack. Large stocks are being held at high prices Owing to their clearness there is a lack of public demand, and the export trade lias declined for the same reason. Tin position regarding raw materials will bt by no means clear until the Govern menfs policy regarding stocks is an nounced, consequently there is a genera lack of confidence. Despite the hetivy fall in the price ol copper the trade remains dull. The pre sent low level may attract consumers but. heavy consumption cannot be ex pected till monetary conditions ar( [ favourable. The position in regard tc (tin is considered quite sound, but prices have been driven down in sympathy with the depression of other Far Easterr products, while the coal crisis has stopped buj'ing by tin plate manufac turcrs.—(A. and N.Z. Cable.) STEADY PRICE-CUTTING. WEAK DEMAND FOR WOOL. LONDON", October 17. Prices continue to decrease. Gloves are now 10/0 \o 7/6, and woollen socks I/O a pair. There is a remarkable de mand for five-guinea suits. Boots, shoes and linen have considerably decreased Tea is from 1/8 to 2/8 a lb, against 2/S to 3/ recently. Cocoa is from 1/6 tr ■.>/■> a lb. Orders from abroad have decreased owing to the fall in sterling value oi Continental and Indian and Chinese ex change*. Prices of metals have alsc dropped. I Yorkshire warehouses are filled witl goods as the result of the cancellatioi of foreign orders, and factories are work ing short time. The demand for woo is weak, and the majority of wool sort ers are unemployed. The hope of im provement is remote. Tt has been esti mated that it cost 3000 per cent mor> to produce a yard of 12oz serge than ii 11)15.—(A. and N.Z. Cable.)