CONDITION OF AMERICAN INDUSTRY,

Hokitika Guardian, 5 January 1921, Page 1

CONDITION OF AMERICAN INDUSTRY,

Much difficulty in selling bills on Ansilia j,ud New Zealand is experienced New York, according to a letter

from Messrs Maillcr and Querean, dated November 8, which reached Melbourne recently. London bankers, the letter states, claim they are out of funds and are not disposed to make advances. They are requesting their connections to “go slow" in the matter

of shipments, and only send what is absolutely necessary, avoiding all other classes of goods. This makes it still more difficult to carry on business from the United States! New York bankers hold out little hope of any radical advance in the exchange rate on London. Shipments of steel goods from America for Australia are still on a moderate scale, and there has been no endeavour to dispatch, them in large volume. Every motor car factory in the United States is working on a reduced time basis, and prices of nearly all cars have fallen sharply. Numerous other reductions have been made in the prices of manufactured goods, notably in textiles where the fall .n some instances has been 40 to 00 per cent. Til woollen there has been a severe decline while many leading lines of cotton are selling at almost pre-war ■prices; but in neither c asp has the reduced stimulated trade to any great extent. In some trades labour has voluntarily offered to accept a reduction in wages rather than have the mills closed, and the writers believe that this practice will be followed in many cases. Labour has been very persistent in making claims, but with increasing volume of emigration from Europe, and the falling off in the demand for workers in many branches of trade, concessions, in the opinion of the firm, undoubtedly will have to be made by labour. The present is described as an anxious time for practical! v everybody in business and this is expected to continue until there is a final readjustment of values and labour lias lessened its demands. Another American letter to hand is from Messrs John Dunn, Son and Co. t of New York, who stated that the financing of shipments to Australia was becoming more and more circumscribed. The difficulty in moving funds Prom Australia to London was said to he such that the banks were not disposed to negotiate Australian drafts to any extent; and it seemed that unless something was done to correct this situation, exports to Australia must ho largely suspended for a time. The October closing rate in New York for sterling drafts on Australia was 8.450d01.