The Star. WEDNESDAY, DECEMBER 20, 1882. PROSPECTS OF TRADE.

Hawera & Normanby Star, Volume III, Issue 375, 20 December 1882, Page 2

The Star. WEDNESDAY, DECEMBER 20, 1882.

PROSPECTS OF TRADE.

We recently adverted to the prospects of trade in Greafcßritain, and stated that, so far as couul be judged by the then appearances, there was good reason to anticipate an improvement. The last published Board of Trade returns for August fully bear out this belief, and, as it is of importance to the community to have correct and recent information upon this point, we make no apology for again reverting to it : the more especially as money is a little tight in New Zealand just now, and the prospect of an improvement in trade tends to relieve the pressure. The statistics referred to show that, during the eight months ended in August last, the imports into Great Britain increased by 4 per cent., and the exports by 6'B per cent., as compared with same eight monthly period last year. There has been a large increase in the imports of food products, more especially of wheat ; but a great falling off in imports to Great Britain of cotton. But this falling off in the imports of American cotton, [although it has to a slight extent been counterbalanced by increased imports of Indian cotton], though adverse to English cotton manufacturing interests is greatly in favor of Now Zealand wool growers ; because, whenever cotton is dear or scarce, the demand for wool increases, and vice versa. This fact is borne out by the returns, which show that for August last the British imports of wool were 91 per cent, higher than in the previous August. There is just at present a most surprising aud unusual activity in the iron shipbuilding trade, which trade is now more important even than the construction of railways, which a few years ago was by far the more extended branch. Tne exports of iron during August increased 16 per cent., as compared with August, 1881, and for the eight months they increased by 20 per cent. The coal trade is feeling the benefit of the great improvement in the iron trade, and there is also a general feeling in business circles in London that the woollen trade is improving. There is every prospect of a good harvest, both in the United States, Great Britain, and New Zealand. In parts of Australia the wheat crops look well, but not everywhere. Cheap bread throughout the globe is a practical certainty this year ; and inasmuch as when bread is cheap wages go further, and as wages are always higher, and the demand for labor is better, after a good than after a bad harvest, it follows that the laboring classes in Great Britain and elsewhere will have more to spare and to spend in luxuries than they have had during the past two years. This balance available for other than the bare necessaries of life, will help to improve trade generally. Unfortunately, there seems a doubt, whether the certain improvement in trade which has lately set in, may not to some extent be lost by the workmen agitating for increased wages before employers are in a position to grant it. It is, of course, undeniable that as trade improves, and profits increase, wages should rise ; but when manufacturers have suffered heavy losses, they need some little time to

recover from the effects of bad times.

Turning aside from the consideration of the state of trade in the old country, and reverting to the actual state of affairs in New Zealand, it may be well to recall the commercial depression which existed before the first loan was floated in 1870, and the rapid recovery which took place immediately afterwards. From Wellington, we hear that respecting the intention of Government with regard to floating of the first million loan, it is understood all necessary authority has been transmitted to the loan agents, who are empowered to use their own discretion in placing the loan in the London market when the period of pledged abstinence expired. That time expires this month, and the matter then rests with the loan agents, who propose to offer the loan at the earliest period, which is, in their opinion, consistent with the best prospects of success. The latest information from reliable English sources points to the probability that the loan will readily be taken up at a fair price. If these anticipations prove correct, an improvement in the New Zealand money market, as well as in the markets for New Zealand produce seems well assured.