BRITISH MARKETS.

Lyttelton Times, Volume CXVIII, Issue 18574, 29 November 1920, Page 8

BRITISH MARKETS.

FORTNKHHTLY REVIEWTHE MONEY MARKET. At Telegraph—Prose Association— OopyngM. Australian and N.Z. Cable Association. (Received November 28, 5.6 p.m.) LONIDON, November 37. There is a growing atringency in the rooney market, but large Government disbursements on December 1, »«*«*»* £50,000,000 interest on the War Loan, should considerably ease the situation. The banks. However, aw likely to restrict loans ul 'December in order to conserve their oaah resources and make a good show in their bat nnce-sheets.

FOREIGN EXCHANGE. Foreign exchanges have fluctuated considerably. The movements generally nave favoured London. The German mark has been very erratic, closing at 245 to the £1 after touching 215. STOCK EXCHANGE. All departments of the Stock Exchange show a marked' shrinkage of value*. Forced liquidation is evident in many quarters owiuir to restriction of credit facilities. Traders End it increasingly difficult to finanoe the carrying of heavy stocks. As the decline in prices of commodities will not allow of the profitable realisation of holdings, the only alternative, is to liquidate Stock Exchange seourities.

THE WOOL TRADE. Wool conditions at Bradford show little change. Top quotations are nominal, witl> an easier tendency. The only purchases are m small quantities for immediate requirements. A lock-up continues at the retail end of the trade, preventing the flow of business. There is not yet.' sufficient confidence in values, particularly Government reserves, which are relatively higher than in other market*. The raw material end of the trade is in rather a happier position and more hopefuL Though there h but little business, there is a feeling that the worst is over as Vegards the readjustment of prices. Thereto \ much more confident feeling in the United ■tote, after th. 6 eleotions, and the inquiry from ' that source 1b improving. Some oiler, we coming along. Germany is now in cross-breds. THE -WHEAT MARKET. •Wheel continues very slow of saleia «x----eeotation that a Royal Commission will shortly reduce the price, following a reduction oi 4s in imported flour commencing on November 29. It is stated that Canadian wheat could be purchased here if the market were free at 18s a quarter below the Commission's present quotations.

THE FREIGHT OUTLOOK. The depression In freights has become gen•xsL All markets are over-supplied with tonnage, and it is expected that a considerable number of steamers will bo laid up next week, as it is cheaper than running them. The Australian Wheat Committee is holding off the market, but fixtures have been made for France on the frano basis,, which at present exchange is equivalent to about 125 s per ton. Probably steamers could bo fixed tor tanu&ry-March loading at 12,05.

' SLUMP IN PRICES.- . The general decline in the wholesale prices of commodities is regarded as ft most encouraging sign in the business world. The \rocess of deflation may be a long one,, and Bust be accompanied by a period of business Jepression, but should ultimately effect a reduction in the' cost of living, entailing a 'lower basis of wages and a more reasonable attitude on the part of Labour, thus enabling Britain to produoa'more cheaply and regain the markets which she has been lost ing. So far the reduction has not spread to the retailer or consumer, and the National Wool and Textile Industrial Council yesterday notified payment'of an advanoe of 20 per cent in " cost of living wages."

COTTON, RUBBER, HEMP, ETC. , LONDON. November 27. Cotton.—December delivery, ll.OTd per lb. Rubber.—Plantation, 18 d; Para, lBJd; jmoke'd, 123 d. Jute.—Tho market Is woai. NovemberDecember shipment, £4l per ton. Hemp —The market is slow. October-De-cember shipments, £SB per ton. Copra.—November-January shipments, £4B 15s pop ton. Linseed 0i1.—£46 per ton. I Turpentine.—ll4s per owt.