COURSE OF TRADE
POLITICS SND INVESTMENTS
PROBABLE LOWER RATS OP INTEREST.
(BXITSD PRJIS ASSOCIAJION.—CO?HMM.) (AUSTRALIAN - NEW ZBALAND CABLS ASSOCIATION.) LONDON, ilh March.
After-the recent fovei-isli 'activity in the gil"edged departmact oi the StockExchange, fciiare has been comparative quietude during the pasi week. The general buying movement received a chock fron> .the uncertain, political oatlook at home and the shipbuilding and engineering deadlocks. Consequently there has been a disposition to neanro some of the substantial profits which accrued during the recant upward movement, but the undertone has remained distinctly good, and there is little abatement, in the keen demand for firat-claos securities. The firamej;s of these hrs been increased by a. rumour which'is current that-the Government will shortly offer ii 2 "per ceni. Treasury bonds at £99. This is confirmed, but is believed to be intelligent anticipation. _ There ia also talk of an early reduction in the bank rate kj' 4 par Cent. Everything points to ?, steady improvement in Government credit. The manner in. which 'recent good issues have been over-subscribed seems to suggest that investors are fully r.ware that they may have to be content in the near 1 future with a yield of 4j j>er cent.' on irredeemable Government securities. MOBE OPTIMISM. A general trade report from official sources says that since the turn of tho year there has been a steady, if restrained, extension of the more optimistic feeling which had shown itself during the preceding two months. A continuance of the movement towards normality, though slow, and the gradually increasing number of inquiries, also the promise of extensive Government economy, arc all contributing factors towards a brighter feeling, despfte the fact that actual business has shown only a moderate improvement.' Certain industries and trades, however, reporf definitely improved conditions with more and larger orders. Owing to the falling costs of production there is a feeling of greater security,on the part of both manufacturers and buyers in regard to future prices. PIECE GOODS PEOSPECTS. A satisfactory feature is the imp-roving outlook in the piece goods section,of the industry. There is more inquiry, especially for soft handling fabrics, Vbut a, reduction in the cost of production is urgently needed. Ip this connection the remarks of the chairman of one of the largest clothier's firm's in, Leeds are interesting. He said that there was'a steady improvement in both the home and overseas trade, except where the exchange rate is adverse. Ordero were well ahead of last year, and they had ,been working full time for three months, compared with three days weekly a year ago. If there were no acute labour troubles, he looked forward to continued expansion! Other reports from Leeds are hardly so optimistic. Not many businesses are in such a fortunate • position, and prices are still far ;from satisfactory, leaving little working margin. A definite improvement, it is said, is impossible until .the conditions of the export trade are more stable.
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Bibliographic details
Evening Post, Volume CIII, Issue 54, 6 March 1922, Page 4
Word Count
484COURSE OF TRADE Evening Post, Volume CIII, Issue 54, 6 March 1922, Page 4
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