BRITISH TRADE REVIEW

Dominion, Volume 14, Issue 246, 12 July 1921, Page 5

BRITISH TRADE REVIEW

MARKET FOR GILT-EDGED STOCKS DEPRESSED WIDESPREAD EFFECTS OF COAL STRIKE Sy Telegraph—Prcea Association—Copyright London, July 9. Owing to heavy applications for Treasury bills, money has not been over plentiful. The withdrawal of the six months’ bills caused 'bewilderment. Mr. Chamberlain’s announcement of a new issue of Treasury bonds, maturing in 1929, depressed the market for gilt-edged stocks. The market did not welcome the issue, but reaction followed, based on hopes that tho new loan would operate in the direction of further reducing theBank of England rate. The "Economist” declares that the issue was inopportune on the eve of the holiday season, and expresses the opinion that the worst obstacle is that the discredit in the matter of public expenditure from which tho Government is Buffering results in the belief that further lendings to the Government are likely to encourage extravagance. Tenders for Friday’s offer of .£55,000,000 three months’ Treasury bills amounted' to .£117,000,000, the average rate of allotment being J!5 3s. Od., the lowest since the resumption of tenders. The volume of business on the Stock Exchange continues small. Hopes of revival, based on industrial settlement and reduction of tho bank rate have, so far, been disappointing. The Board of Trade returns strikingly demonstrate the exceptionally difficult position into which trade has drifted owing to the cumulative effects of the coal strike and falling commodity values. Half-yearly totals show' a decrease in exports, as compared with 1920, amounting to <£351,000,000. Imports have similarly declined by .£461,000,000. May and June were tho worst months experienced for years, exports falling for the first time below pre-war level, although prices have not returned to anything like normal. Figures showing quantities instead of values of trade the more strikingly demonstrate the falling away as compared with pre-war volume. Tho settlement of the strike gave > :-;e in some quarters to an immediate revival of trade, but the improvement mast necessarily be gradual. Iron and steel bars are still importable from Belgium at <£3 per ton less than Welsh prices. Some authorities express the opinion that a full revival is impossible until coal is available at 225. per ton instead of 455., which is the best possible under the coal settlement, _ despite the subsidy. Nevertheless the iron and steel companies are making great efforts to re-establish trade. Tho cotton and wool wages settlement has provided a more hopeful tone in the textile trades; but the wool combers’ failure to reach the heavy commission charges agreement still bars progress in the direction of stabilising the woollen industry.—Aus.-N.Z. Cable Assn.