Finance and Trade

Hawke's Bay Tribune, Volume XI, Issue 242, 17 October 1921, Page 3

Finance and Trade

WEEKLY BRITISH REVIEW. London, October 15.

The chaotic condition of the foreign exchanges lias caused some uneasiness on the ►‘stock Exchanges. There has also been nervousness regarding the course tf events following the bilesian decision, but. despite tlise adverse factors gild-edged securities have been an outstanding feature of strength. Aided by the favourable position and tiie prospects of the money market there is a likelihood of numerous new issues of colonials, of which a long queue is waitng their turn, and all seem likely to be absorbed. The New Sqiith Wales loan had a good effect on the market, though sales by “stags,” who threw stock on the market directly they received the allotment notes, caused its price to ease to about a quarter discount. SLUMP LN GERMAN MARK. The extraordinary slump in the German mark has outshauowed ail other movements in the ioreign e xchange inarKet. liie immediate cause of tne slump is undoubtedly the Silesian decision, but it is pointed out that the rapid increase in inflation and distrust in the mark, which had grown enormously lately, both in Germany and abroad, make almost any depreciation possible. French Financiers suggest that Germany is deliberately encouraging deterioration m order to have an excuse for not fulfilling the reparation terma. Colour is lent .to this assertion by a remarkable heading to an article in the “Vossische Zeitung” on “The blessings that flow from the fall of tho mark.” The “Vossische” says:—“The fall makes a boom in production and export, which, if artificial, unhealthy, and fleeting, is bringing to-day and tomorrow extraordinary profits to German industry, guaranteeing German workmen work and bread. In hone of the great industrial States is there so little unemployment as*in Germany. At the rate at which our money is sinking, the anti-dumping laws against us must break down. They cannot prevent German competition forging ahead.” GERMAN WOOL DEMAND DECLINES. The decline in the mark is having an effect on several of our markets, notably metals and wool. Of late Germany has been the largest European buyer of copper, the recent decline in which is almost entirely due to the cessation of German activity. The German demand at th** wool sales also shows a most marked diminution compared with previous sales. This is a disturbing factor, and one well-known wool authority says there is undoubted nervousness re-

garding the stability of values for next year’s commitments, due largely to the fall in tho mark and general disquietude regarding German finance. BETTER TIMES FOR LANCASHIRE. The Lancashire cotton industry has •shown a distinct improvement during the last quarter. Higher values for the raw article have stimulated the demand for manufactured articles, but production is not yet at full stretch. Many operatives are still unemployed. A satisfactory feature is the appreciation of the value of stocks, which has undoubtedly prevented financial difficulties. There seems to be ground to believe t hat bettor times, are ahead for Lancashire, There is little likelihood of trade slipping back to such depression as existed in the early summer. Tho prospects of the cotton varn industry ar? brighter than for a long time. There is better demand from most markets abroad and every likelihood of prices becoming more profitable before the end of the year. The improvement in raw cotton prices was the natural sequence of the decreased estimates of tho output in the United States. According to the latest estimates. it is indicated that probably the output will he onlv 7 500,000 hales, compared with 11,355,000 for the previous season. FURTHER DECLINE IN FREIGHTS. Wheat freights have further declined owing to the cessation of all inquiry from the Argentine. North Pacific, and the East. The lull cargo market is left open to America and Australia. Much tonnage is prepared to go to Australia in ballast. At present the figures are 55/- and 60/-, according to the port of loading. Some figures for South Australia and Victoria in Novemlier are 57/6.—(A. and N.Z.)