TRADE, REVIEW

Hawera & Normanby Star, Volume XLI, Issue XLI, 29 May 1922, Page 5

TRADE, REVIEW

SIGNS OF REVIVAL

FAVOURABLE FACTORS,

i _¥«.OA.__.ii—_Mil;sS AO-OClAl'lUiS—OutiKiUHT . LONDON, May 27. I The reversion to tne pre-war system of dealings on the Stock Exchange and tne lengtnening of the days of business oy an nour have so far Drought little benefit to members, for all markets are inactive. The public is showing no disposition to avail itself of the carrying over facilities, and very little business is passing, except what would ordinarily be done for cash. This is partly due to the refusal,.,by many firms to do contango business, and partly because after eight years' dealing for cash the public is not yet familiar with the method of contangoing. The Stock Exchange does not expect much contango business till business in speculative stocks revives. An interesting feature has been the flotation of a Straits Settlement Loan of £4,200,000 at 4_ per cent, at £95, terms which are almost identical with the New South Wales recent issue. The Straits loan proved even less attractive to the public than did the New South Wales one, for underwriters were left with oyer 95 per cent., the public subscription only amounting to £75,000. The newspapers regard, this as an indication that the public are of opinion that the time is not yet ripe for the issue of colonial loans on these terms, which borrowers will have to revise if they wish to attract subscribers. There are increasing signs of a revival in trade sit hand, notwithstanding adverse influences like the Irish unrest, labour difficulties, the complicated European political position, and uncertainty regarding Germany's reparation payments. These seem outweighed by favourable factors, notably cheap money, increased shipping activity, as shown by heavier entrances and clearance* of cargo at the ports of the United Kingdom, and reports from worldwide trading centres of a reduction in stocks of raw materials and finished goods to more manageable proportions. Unemployment and short-time working m the United Kingdom, though still oh, a considerable scale, are lessening, and employment shows an increase in nine out of thirteen leading industries m the United States. As the newspaper The Statist points out, a business revival is usually heralded by increased speculative activity in stocks and commodities, a cessation in the fall of commodity prices, and a plenitude of loan money at low rates. These three conditions have been fulfilled Eor some time past the effect has been more noticeable in New York than here, and as the depression originated m the East and came here via the United States, we should probably look to those' countries for the first signs of its passing. Such a sign is discernible in the United States. The New York Stock Exchange shows more pronounce^, activity throughout its whole list than in 1921 and there has also been a much-increased demand for stocks and shares in London and the provinces, with a rise "in quotations. Despite heavy arrivals, the apple tradc| for all sound fruit continues satisfactory, with a brisk demand. Unfortunately the conditions of many cargoes leaves much to be desired, and prices realised for them cannot be re- * muneratiye. Pears are also in variable'; condition, many arriving almost worthless, . but the few really sound ones are bringing excellent prices Many importers are pressing for1 the compul- ! sory pre-cooling of "both apnles and pears prior to shinment. They consider it hopeless to Bxnect fruit to arrive sound when put on board at a temperature of 100 degrees. It is possible the underwriters may insist on pre-cooling as a condition for granting policies. c