BRITISH TRADE

Evening Star, Issue 18135, 27 November 1922, Page 6

BRITISH TRADE

VERY SLOW RECOVERY. . WOOL POSITION STRONG. SIR A. GOLDFINCH ON “ BAWRA.” BUTTER DECLINE PROBABLE. Press Association—-By Telegraph- .-Copyright. LONDON, November 25. (Received November 27, at 8.5 a.m.) Tho anticipation that the return of the Conservative Party to power would brighten things on the Stuck Exchange has not been realised, and the week has been dreary and uninteresting. Most of the market? are very dull. Some giltedged stocks, notably tho longer-dated National War Bonds, have cased in price owing to tho recent persistent stream of buying having come to a standstill; but this is regarded as only temporary, as it is apparent that the recovery of trade _ will he very slow. There is not much likelihood of any great amount of money being used to finance commercial undertakings. The bright, spot in the market is colonial securities, in which prices are well maintained ; while Argentine and Brazilian rails are strong, in expectation of higher dividends. . The position in tho wool trade, as indicated by the opening London sales, is regarded as satisfactory, especially the fact that there has been no serious decline in merinos. This is accepted as evidence of the general soundness of the situation. Another satisfactory feature is the strong American demand for medium cross-brcds, which is regarded as due to a d'esire p popularise cross-bred fabrics for suits. For a long time efforts have been made here to induce tailors to use cross-bred) cloths, but without success. Now that America is showing the way, it is hoped that English tailors will follow suit, and bo reduce the disparity which still exists between the prices of merinos and cross-bred-s. On this subject Sir Arthur Goldfinch, of “Bawra,” replying to Sir Andrew Gaird’s remarks (cabled on Thursday), says: “It is -an entirely superficial view of the case to suppose that merino woolgrowers are benefiting only by the scarcity of their article due to a particular fashion, and that their position might he_ endangered through consumers, being disgusted at tho high prices of merino, turning to the abundant supplies of coarser wool. We are passing out of that _ stage of affairs, and it has long been evident that conditions in 1923 are going to bo totally different. The dominating fact is, not that fine wools are scarce, but that all classes of wool are going to be scarce. The statistical position is far too strong to permit of any relapse in prices. The only point on which I agree with Sir Andrew Caind is on the doubt he expresses whether ‘Bawra’ shareholders will decide in favor of the recent proposals. 1 incline to the belief that the proposals will be rejected, not on their merits, but because a natural apathy exists among tamers about everything. It is not unnatural that great numbers of farmers should think that the early distribution of six to eight millions sterling is more attractive than any expectation of future henefius. personally, I would not at all bo disappointed if the proposals were defeated, though I think the farmers will make a _great mistake if they vote in the negative.- Ihe banks and the wool-brokering houses will find, if the proposals are carried, that none of tho existing organisations will suffer any bam.” . Heavy supplies of butter are in sight, tho quantity afloat from Australia, New Zealand, and the Argentine _ totalling 601,815 boxes. In addition, owing to the decreased Continental demand, heavy supplies of Danish butter- are coming here, filling all the needs of our northern inaikets. Argentine supplies are increasing greatly, and whereas last year- about 20 per cent, of the Argentine production was taken by France, Belgium, and Holland, we are getting all tbe Argentine exports, as the countries named are now sdx-sup-portiim. It is thus evident that our supplies exceed our present rate of consumption. and prices must be reduced 1 in order to stimulate the demand. Australian eggs are finding a rather unsatisfactory ' market. Ten days ago they realised about 255; now they have very slow sale at about 20s to 235. This decline is largely due to heavy arrivals from tho Argentine, of which tho best are selling at about 17s, and others at 15s. Tho outstanding feature oi the metal market is the decline of spelter. Tim recent high prices have brought American sellers on the market. They sold, about ten thousand tons for forward shipment, and may offer more. If so, prices will go lower, but the statistical position remains sound. It is said that producers are now holding off an anticipation of a recovery.— A. and N.Z. Gable.