TRADE IN BRITAIN

Evening Star, Issue 18334, 23 July 1923, Page 9

TRADE IN BRITAIN

FORTNIGHTLY REVIEW. Press Association—By Telegraph—Copyright. LONDON, July 21. Tile Stock Exchange has recovered quickly from the depression which followed the advance of the bank rate, and with the monetary conditions easy giltedged securities have shown considerable strength, and prices have improved all round. Outside the gilt-edged_ market there has not be£n much activity, and ns the holiday season approaches its height there is not much prospect of any increase in tho volume of business; but the tone of the Stock Exchange generally is cheerful, and there is a distinct disposition to take a more hopeful view of the Ruhr and reparations outlook in anticipation that tho British reply to tho German Note will have satisfactory results.

Tho dockers’ strike has naturally’ prevented homo railway stocks participating in the improvement, but it had singularly little effect on the industrial market generally. The British Government's award of £3,750,000 to tho British South Africa Company recalls one of the greatest Stock Exchange disappointments of thirty years ago. There was a groat boom in Chartered shares, as they were popularly called, and for a month or so they rose steadily daily, all classes of the public investing in response to Cecil Rhodes’s adviro to “buy them for your grandchildren. ’’ The price rose to £9, when suddenly the market collapsed, and tho price fell to £l. Recently these shares were quoted at 9s, but they have now recovered to 15s in anticipation of a cash distribution out of tho Government’s awayd.

The trade position in Great Britain is disappointing. A special report in the ‘Economist’ says: “The volume of trade continues on a large scale, which is very much better than at this time last year, and is near the peak point reached this spring; but unfortunately the current orders are not being replaced, and the period ahead for which tho industry bad assured orders is rapidly shortening. In some cases the end of the output is alarmingly near. Two features of special interest are, on the ono hand the Bradford spinning industry, which has been particularly hard hit by the low prices and the lack of Continental demand, and on the other hand the electrical engineering trade, which is full up with orders,”

Early in April Australian flour importers were greatly perturbed by the recommendation of -the -Agricultural Tribunal that imported flour must bo accompanied by 25 per cent, of offals. Tho proposal met with much opposition, and finally the Government abandoned it.. It was suggested then that the proposal emanated from the United Kingdom millers, ami this suggestion was fully confirmed by tho speech of tho chairman at a meeting of tho Associated London Flour-millers. Tho chairman said the keenness of the competition which the milling companies had to meet in the past, year was unparalleled in the history of tho milling trade. The unsatisfactory condition of tho trado was largely due to two causes —'(1) Tho largo quantity of imported flour, ami (2) tho largo surplus capacity of the mills in this country. Our millers, particularly in the ports, always faced keen competition from foreign and colonial millevs, who were well acquainted with the science of dumping. It is calculated that the mills in England and Wales, running normal hours, could rnahufacturo at least 25 to 50 per cent, mora flour than is required, equivalent to some 10,000,000 sacks per year. This has resulted in much flour being sold below cost price. The situation was also affected by the decrease in consumption, which is estimated to be 10 per cent, below that of a decade ago. The abandonment of tho wool sales in not regarded ns unfavorable for trade, the general impression being that a rearrangement of the sales to commence on September 4 will make for strength in the market, as the opinion is pretty general that values should improve, especially in view of the large consumption on tho Continent. • Meanwhile Bradford shows slight indications of recovery from the recent *acuto depression. No increase in tho demand is noticeable, but the tone is rather bettor, and traders, aro inclined to take a more optimistic view of the future.---A. and N.Z. Cable.