MONEY AND MARKETS

Evening Star, Issue 18158, 26 December 1922, Page 7

MONEY AND MARKETS

CHRJSTMS TRADE AT ME THE POSITION CANVASSED. Press Association—Bv Telegraph- -Copyright. LONDON, December 23. (Received December 26, at 8.5 a.m.) Business on tho Stock Exchange is unusually dull, even for the week before Christmas, hut prices generally are maintained, despite some selling of gilt-edged stock. There was an occasional weakness in colonial scrip, apparently in anticipation of now issues, which are known to be impending, though tho present conditions hardly indicate that anything will bo done in the first fortnight of tho now year. One financial writer, however, suggests that holders of Australian loans are inclined to sell owing to fears that Mr Huglios may not obtain) a working majority. The outstanding feature of the foreign exchange market is the improvement in the Gorman mark. This is apparently due to a feeling that although the rumors of an American loan are inaccurate America will be forced eventually to take a share in the reparations settlement. ‘ Lloyd’s Annual Review on Shipping and Commerce’ contains an article on the trad© outlook by Colonel Oliver Armstrong (ex-president of ther Federation of British Industries), who says: For British industry 1922 has been a year of unfulfilled expectations. In the United) Kingdom economic conditions generally stabilised themselves, and tho country emerged successfully from trade depression. Wages and prices have come down to what may reasonably be expected to bo tho postwar level. Money, comparatively speaking, is plentiful, and is obtainable at reasonable rates, yet the factories are idle, and nearly 500,000 people are unemployed. Colonel Armstrong says it is true that appearances are distinctly brighter, and conditions are starting sensibly to improve, both at homo and abroad, but it is still considered that a trade revival has not materialised. The reason is twofold—firstly, the world’s affairs have gone from bad to worse. The Near Eastern uplioaval, Germany’s collapse, the United Slates tariff enactments, France’s financial position and her intransigeant policy, and the collapse of the Genoa Conference have all exercised a pyschological effect on international trade, inhibiting a return of confidence. Secondly, the United Kingdom, after an effort entailing much economy and) privation, succeeded in putting her finances in order, hut the majority of tho other nations did not follow her example. “We are tefnporarity suffering,” ho says, “from the effects of our own deflation in a world of inflation.” After describing the conditions of the Continental, Near Eastern, United States, South American, and Far Eastern markets, Colonel Armstrong refers to tho British Empire market, to which the greatest hopes are pinned. Taken as a _ whole, trade within tho Empire shows signs of general, though slow, recovery. The outlook is favorable in Canada, Australia, and New Zealand. Undoubtedly substantial development in Empire trade would provide a solution for many of the present difficulties, but two considerations must be borne in mind—firstly, any development must he slow ; secondly, it is unreasonable to expect to make up at the expense of the Empire the whole balance of trade lost in other markets. Colonel Armstrong concludes; Though everything must be done to increase the Empire’s trade, the leeway we have to make up is so great that concentration on Empire markets alone will not be to the best interests of British traders if it results in the neglect of other equally important markets, such as the Far East and South America-

Regarding the butter outlook, one of the leading importers says that the consumption has increased enormously, owing to retailers selling at Is 8d per lb—a price which does not show any profit on the wholesale price, and which means either that the wholesale price will have to come down at least 10s per owt, or the retail price be raised.. The multiple shop companies have been selling for the last two months on a falling market without any profit, and they will not continue to do so. 'if, as is iprobbable, they raise the retail price, the consumption will bo affected, especially as the demand for a fortnight after the holidays is always poor, owing to working class families having spent all their money on Christmas luxuries. However, trade seems to ho improving generally, the outlook is favorable, and prices are unlikely to fall much or for a long lime. The only thing likely to reduce them would be a great curtailment in consumption through retailers raising the price to the public. A feature of the Christmas market at Snutlitield 1 is the splendid display of Argentine meat, especially beef, including prize 'beasts from South American shows, some of which made Is per lb wholesale. Inasmuch as there is plenty of good quality Australian beef flow available hero, it is a. pity that a similar show of Australian meat was not arranged,, especially as Australian fores are now actually fetching from gd to id per lb more than chilled South American fores. This is mainly due to heavy supplies of South American. There has been (ho usual ■Christmas rush for turkeys, the retail price for best English being 3s 6d, and sometimes 3s per lb; but plentiful supplies of French and Italian birds are available at about 2s per lb. Undoubtedly many of these aliens quickly become naturalised, and are sold to unsuspecting buyers as British. All kinds of fruit are cheap and plentiful, especially apples, best Americans being obtainable at 10s to 15s per bushel. The West Endi greengrocers are obtaining fancy prices for vegetables, asparagus realising a guinea per bundle, French beans 7s 6d per lb, green peas (in pod) 8s 6d per lb. All these are brought from France by aeroplane.—A. and N.Z. Cable.