BRITISH TRADE

Hawera & Normanby Star, Volume XLI, Issue XLI, 11 July 1921, Page 8

BRITISH TRADE

HEAVY FALL IN PAST HALF-

YEAR

EFFECT OF THE STRIKE. »

BY CABLE—PRESS ASSOCIA.TIOM —COPYRIGHT (Received July 11, 8.5 a.m-) LONDON, July 9. Owing to the heavy applications for Treasury bills money has not been over plentiful, and the withdrawal of six-month bills has caused bewilderment. Mr Austen Chamberlain's announcement of a new issue of Treasury bonds maturing in 1929 has depressed the market for gilt-edged stocks. The market did not welcome the issue, but a, reaction followed, based on v the hoj^s that the new loan would operate in^Me direction of future reducing the bank rate. ■ The Economist declares that the issue is inopportune on the eve of the holiday season, and expresses the opinion that the worst obstacle is f;he disci-edit in the matter of expenditure from which the Government is suffering, resulting in the belief that further lendings to the Government are likely to encourage extravagancy Tenders for Friday's offer of £55,000,----000 three-month Treasury bills amounted to £117,000,000 the average rate of allotment being £5 3s 6d, the lowest since the resumption of tenders. The volume of business on the # Stock Exchange continues small. Hopes of revival, based on the industrial settlement and the reduction of the bank rate, have, so far been disappointing. * The Board of Trade returns strik--ingly demonstrate the exceptionally difficult position into which trade has drifted owing to the cumulative effects of the coal strike and falling commodity values. The half-yearly totals show a decrease in exports compared with- 1920 amounting to £354,000,000 Imports have similarly declined by £461,000,000. May and June were the worst months experienced for years, exports falling for the first time below the pre-war level. Though pnc©3 have not returned to anything like normal, figures showing quantities instead of values in trade more strikjngly demonstrate a falling away-com-pared with the pre-war volume. The settlement of. the strike gavei rise in some quarters to an immediate revival of trade, but. the improvement"" will 'l necessarily be gradual. Iron and steel bars 4 can still be imported from Belgium at .£3 a ton less than Welsh prices. Some (authorities express the opinion that a'full revival will be impossible until coal is available at 22s i a ton instead of 455, which is the best possible under the coal settlement, despite the subsidy. Nevertheless the iron and steel companies are -making great efforts to re-establish their ' trade. \

The cotton and wool wages settlements have provided a more hopeful wool combers' failure to reach the commission charges agreement etill bars progress in the direction of stabilising the industry. The Bradford market is quiet, awaiting Monday's sales. Twenty thousand bales of B.A.W.R.A. wool were offered at Hull on Friday. Merinos declined 10 per cent, and crossbreds were par tq 5 per «ent lower both compared with last London sales. Three-quarters of the ' offerings were sold, the^French and Belgians taking the bulk. Australian wheat freights are steady. Portsea accepted 550 tons of Western ' .Australian, wheat to Britain at 62s 6d