FINANCE AND TRADE.

Hawke's Bay Tribune, Volume XII, Issue 235, 18 September 1922, Page 3

FINANCE AND TRADE.

WEEKLY REVIEW. STOCK EXCHANGE UNCERTAIN. London, Sept. 16. Events in the Near East and the breakdown of the Belgo-Gerinan reparations negotiations have caused some depression of the Stock Exchange and there has been considerable selling of gilt-edged securities. The sales were not entirely due lo international and political apprehensions, but partly to the maturing of a great number of options entered into at the encl of June. It is also suggestion in some quarters that big speculators \xho sold out of industrials two years ago and purchased gilt-edgeds aro now selling the latter in order to rebuy leading industrials owing to signs of a trade revival. Another contrisbutlng factor is uneasiness regarding a possible advance in the bank rnt-e. The cenernl position on the Stock Exchange is. as the “Statist” newspaper says, peculiarly difficult to analyse. On the whole the tendency appears to be downward in the case of investment stocks and upward in the speculative division, but not definitely marked in either case. If trade improves to any extent money will flow from the investment markets to trade channels and high-class investments and quotations will be adversely affected. The danger that investment values will recede causes buyers to hold off, while the risk that trade will not recover makes them chary of supporting the more speculative sections. AMERICAN EXCHANGE DEPRECIATED. There has been a slight improvement in foreign exchanges following the report that Havenstein is arranging with the Bank of England to guarantee German bills. The recent depreciation in the American exchange Is explained by a financial expert to ho due mainly to seasonal preparations now being made by this country and the Continent for financing their purchases of American produce, principally cotton and wheat. This, of course, means larger demands for dollars, which are nearly all bought in this market, and also means sales of francs, lire and other currencies in order to secure the i necessary dollars. COAL AND IRON TRADES IMPROVE. According to the Ministry of Labour gazette unemployment during Aug remained had and the improvement which has been in progress since the beginning of the year was not maintained at the same rate as in the previous months. There i* a marked improvement. however, in the coal-mining industry and some improvement in the nig iron industry, iron and steel manufacture. Th« percentage of unemployed at. the en<l of August among trade unions makinc returns was 14.4. compared with 14.6 at the end of July and 16 3 in August. 1921. The avemro level of the retail prices of commodities at September Ist was 79 ncr cent above .Tidv, 1914. compared with 81 on August Ist. The decrease •« mninlv due to the fall in the price of potatoes. WOOL OUTLOOK BRIGHTER. Commenting on the wool position, a well-known authority says top makers in most esses aro adopting n protective nolicy. The volume of business is not large, ns buyers, in view of the near annroach of the colonial season, arn inclined to await developments. Spinners continue well employed and aro finding more interest on domestic account. but are not obtaining prices commensurate with onotations for tons and raw material and with each advance new business becomes increasingly difficult. Conditions in the manuf’cturing sections show slow but satisfactory progress, increased orders on some accounts being a welcome feature, and the situation generally is sound and the demand extending. The fact that there is a political and economic crisis on the Continent had little effect on onr wool market, but it coincided with the appreciable advance in value’s, which is remarkable evidence of th” strpnfrfh of raw material. Improved conditions in consuming centres and the Continental demand show* no abate, menr. Machinery everywhere is well employed. The German textile trade continues prosperous and seems a hie to finance all necessary raw material. The outlook for raw material presents encouraging features. A strong opening of the colonial season is generally anticipated The position of merinos and fine cm«shreds is gradually heina strengthened by the steady expansion nf consumption. Anxiety regarding future German demand is hardly so afiute The possibility of an early settlement of the American tariff reshadows an increased” demand on United States account. —(A. and N.Z.)