COMMERCIAL REVIEW.

Manawatu Standard, Volume XLIII, Issue 1862, 12 July 1920, Page 5

COMMERCIAL REVIEW.

ABUNDA'NCE of money.

(By Electric Telegraph.—Copyright.) LONDON, July 10.

The turn of half the year saw a usual e abundance of funds in the money market. The supply at the week-end, after repays ments to the Bank of England and tho e purchases of new Treasury Bills, remained ] sufficient to keep the rates for short loans ’ lower than at tho end of June, though 5 there is no perceptible improvement in the 1 longer-dated advances. The market is less apprehensive regarding the future than a fortnight ago. Tho Stock Exchange shows ! more cheerfulness, activity and steadiness, though there is no great recovery, _ with : certain exceptions, mostly in sound _ invest--1 rnent shares, but the market unquestionably is more confident, dealers believing that a better basis has been reached on the foreign outlook, and a hope that concessions will yet be made in the excess profits duty, which has also contributed to better conditions. At the same time, tho investor apparently considers that abnormal industrial profits have reached their limit, consequently awakening an interest in giltedged stocks. Shipping shares show an improved tone on the prospect of complete decontrol, but the drop in foreign freights is a disturbing factor. —(A. and N.Z. cable). SLACKENING OF_ NEW BUSINESS. Received July 12, 8.5 a.m. LONDON, July 10. Though the Board of Trade returns for June are less favourable than for May, the totals of tho half year’s figures are quoted lo show that progress has been made in restoring the trade balance, but the question is asked if the progress is rapid enough. Tho outstanding feature is the continued slackening off in new business; this applies in varying degrees in Manchester, Bradford, Birmingham, Sheffield, Nottingham, and Middlesborough. buyers satisfying only merely immediate requirements, and believing that prices have not reached iho bottom. A more _ serious | feature is the further cancellation of Chinese and Indian orders through tho depreciation of tho silver currencies, affecting

especially tho Lancashire piece goods trade. The extravagant purchasing by mills in ihc boom period aggravates the situation iu Lancashire, but. the authorities there, as in other industries, assort that a slump in tho ordinary sense is impossible owing to the high costs of raw material and labour, and also the practical absence of manufacturers' stocks. There lias been no over production, and it is contended that the world's demands are far from satisfied. A revival is not anticipated before the autumn if the industrial troubles, notably among the wool operatives and miners, are averted. The tramp steamer freights continue to go downward. An important factor* is the United States' embargo on coal exports, affecting immediately 500 vessels. Time charters have declined about 15 per cent, in throe weeks, and almost tho enly blight spot in freights is tha inquiry for coal tonnage from Newcastle (New South Wales) at 145s to the Mediterranean and 170s to 175s to Scandinavia. Shipowners mid shipbuilders are alarmed at the heavy increase in the cost of new tonnage, which will also affect tho Genoa Conference decisions. It is reported that many orders have been cancelled.

The newspaper Economist says: The monthly index figures of the wholesale prices for Juno show the largest fall for any month for some years, especially in textiles, but cereals and meat, reached record high figures. A feature of the produce markets in the last fortnight was the slackness in fibres (except flax) and tho stagnation in tallow, said in trade circles to be almost unprecedented. The nonfeiTOUS metal trade believes that prices are finding a.rounder basis owing io the elimination of the speculative element and the tranferenco of metal to stronger hands. At tho same time the fluctuations have caused buyers to remain cautious. A metal bulletin considers that the worst stage of deflation has been passed, though U>o time is not ripe for a sustained upward move. Tho daily supplies ,of English meat at Smithfield continue large, prices being now a little above the control level, and there is a corresponding shrinkage in the consumption of imported meat.—(A. and N.Z. cable).

DOUBLE INCOME TAX. Received Julv 12, 8.50 a.m. "LONDON, July 9. In tho. Iloi'-e of Commons, Mr S. Baldwin, replying to a question in reierenco to double income tax, said lie hoped t.hat reciprocal action would bo taken by tlio Dominions, but hitherto he had not had time to enter into negotiations with them.— (A. and N.Z. cable).