BRITISH TRADE

Evening Star, Issue 17792, 14 October 1921, Page 4

BRITISH TRADE

SLOW REVIVAL OF BUSINESS. LONDON, October 1. Tho financial editor of ‘ Tho Timeo*’ commenting on the revenue figures for the past eix mouths, says that with a deer case already of £l6-3",000,000 tho prospect of fulfilling the Budget estimate of a, decreases of £200,000,OCX) for tho whole year has faded away. Tlio expenditure was £693,000,000, a decrease of £43,000,000 compared with the same period last year. Tlio boating debt at tho end of September was £1,320,000,000, an increase of £45,000,000 from March 51. Next, quarter heavy outlays for railways, agriculture, an d unemployment will swm.il the extraordinary expenditure by about £60,000,000, and fresh inflation wiU bo in.o vitablo. Consequently the Bank Of England had not followed tho example o/ tlio’ Now York Fcdorol Reserve Bank a reducing the discount rate to 5 per con. Hitherto the financial policies of Nc York and London, have followed parall courses. Last week tho Treasury so! £60,000,000 worth of bills under 4 pa cent., and this week the rate is ncarll 41 nor cent. I "There has te-en considerobfo progress « t.bo liquidation of frozen credits, but the trade revival la slew, though the financial activity is distinctly tetter. The South)

African £s,ooo,ooo’loan was covered in' twenty-four hours, and tho next loans expected from New South Wales are likely to be underwritten next week.

India lias been buying wheat from tho United States for tho first time for years, having hitherto shipped supplies from Australia when local wheat was scarce.

Tho Board of Trade is making arrangements to enable tho spelter works in South Wales and England to obtain, zinc con* mitratoa in order to resume operations. ‘Tlio Times’s’ index of prices for wholesale commodities is 180,8 or 80.8 above 1913, Last month’s fall of throe points was entirely duo to cheaper food. A year ago tho index number was 318. For tho first time since March, 1920, tho index number of raw and manufactured materials linn risen, indicating a revival in tho demand for trade purposes. For rubber and certain other goods the prices are very low, encouraging buying. Tho folly of recapitalising old companies at inflated boom values is becoming more apparent Several industrial companies, floated in 1919 and 1920, havo not paid dividends, and in sonic oases are being reconstituted.

The city editor states that, tho first payment was made yesterday on account of £87,000,000 duo from Australia, to Britain. Tho instalment amounted to £3,000,000, covering interest and sinking fund.

Apart from ibis the bala.nco o f tho total war debt of £400.000,000 will bo entirely raised iu Australia, which Ins definitely shouldered and is meeting tho fell service of its whole war debt, in striking contrast to most European combatants

'Phis factor in exchange must entail larger exports from the Onimmiwealth. Fortunately the prospects are favorable, the wheat out look being excellent..