BRITISH TRADE OUTLOOK

Nelson Evening Mail, Volume LIV, 1 November 1921, Page 5

BRITISH TRADE OUTLOOK

ABNORMAL EASE IN MONEY

MARKETS

(By Electric Telegraph—Copyright.) (Aueiraliaii A N.Z. Ct>nl» Association.)

LONDON, Oct, 29

Abnormal ease prevails in the market. ..1:3 almost, vii.rely ' the l-c- - 1 timent's continued hex ■ v borrow r.g from the Bank :i!' En;;;-.. .• The position is that during .'.■■ last we/>t: • ie volume of Treasury Bills for sale by tender lias been much below the a.rio'ini of maturing bills and the market's recpiiremeiif. of treasury bills. The result lias been that . treasuries have fallen to unremnnerative levels, the exchequer has been unable to cover maturities by the sale- of new bills ami compelled to borrow on wavs and means. Advances over and above the amount of revenue have caused a deficit.

Exports consider the present ease is likely to continue. The Statist says:—Tn- the trade slump all commodity prices are fnndamenial factors which would ensure clump mnncv apart altogether trom the effect of the < Jovernrnenfs artificial creation of credits. Therefore the ease is likelv to continue till trade begins to revive or Government expenditure is again brought substantially lower. " The stock exchange is rather firmer and more- .cheerful. Easiness of money caused a sleady flow to investment in crilt, edged stocks until the announcement, of £20,000,000 loan which curtailed business causing investors to wanfor the new Joan instead of coining on tho in!ir ke.t to purchase- n. ; w « ,ork^ Regarding wool, a prominent mem ei of ..he trade says the outlook tol the new year is .somewhat obscure. Buym are Adopting a cautions policy ioi future business. The advance has been Ii: and too rapid forabsolute confl(lpncft; Margins of prolil are impos S iblc under tho present rendition and values of the manufacture, prndm and ra w wool do not mcot. Mam, fact tire,* omplain that the advance has checked new business, though a lew e< ago there were hopes a new o. the basis of forty two pence for Mxtyoir tops. Tho conditions prevailing at the, price-goodß end of the trade are still far from satisfactory. The advance will, however, help towards the better l^ ah ou of ol i stocks, although >t hinders new busing Meanwhile manufacturers aie tf i.f squeezed between the millstones of high cos. of production here and the low pr ces offered by competitors abroad T e most remarkable feature of the ,e,.i PS just, closed has been the -ib sorption of proportionately large of - i.f crossbreds. do which lot i n» Home at d Foreign buyers contribute The on? explanation of tho broadening of competition in erossbreds ,« then relative cheapness, which s cieating ; demand encouraging «; onfi(1 ™;?- lip( , Germany's firmness to secuie sivppbe i- .mir/j-ne Ormnny has taken m i fired Importa from South Ammca ■ ;; Ting th0 P y ear ended September 134,000 haW a total wh«J » highei ban any and they have refused new business. Their future- looks rosy, but this u* Home Se is the position of the manuSSer and merchant of piece goods. Financial difficulties are however, less acute and are gradually lei »g a, £ viated, but the promise of a real ic vival has not yet materialised. The position of the provision tiade shows no revival, but seems to be goStan bad to worse. Government tocks of hotter are moving very slowly Despite the future reduction of selling price nobody seems to take any .nle - U in this cold stored stuff and it is suggested the Government ought to cufthc loss and sell it at any price n c P nd it to famine stricken Centi.il Europe. The only satisfactory thing in §," Kti«. market i, f the for small arrivals of ™" A ™ which is clearing rapidly. <t is nam > S" to mention the word n Toelov StreeW,owadays. touches it seems to f' * "mr h 0 ; firms whieh combined to 1™ «■"««■ rw,>nslind's last output at 10.,fl '"• ?«£ find it only saleable here at abou i?;bt hillings a ewt.. so then- lossenust run into many thousands of pound-s! Foc.ple who bought Canad,an n>o lost, heavily. , 'Other foods continue on tle down <md<» and the public are at •««■«•»»« to get them at something approaching P lSeS i S, r i 3 now being ot St W pence and two shUhngß a pound, and cheese at and a chillm^.