LONDON TRAGI REVIEW.

New Zealand Herald, Volume LVII, Issue 17663, 27 December 1920, Page 5

LONDON TRAGI REVIEW.

• DEPRESSION GENERAL. J BUTTER PRICES FALLING. SHIPPING LAID UP. Telegraph—Press Copyright. (Received 5.30 p.m.) '• A. and N.Z. LONDON. Dec. 25. T The Stock Exchange has passed through n a period of depression, with a consider5. able amount of forced liquidation. The e failure of Farrow's Bank revived un--3 pleasant rumours about somewhat similar g institutions, and renewed selling in the d j consol and war loan market was attributed i- |to forced realisations on their account. 3- I The depression is also due to the absence ;- of any bullish factors likely to revive .1 j speculative interest. Some fear is exh pressed that even the soundest undere j takings may be troubled by the severe >- j deflation of commodity stock market ;. values. Industrial shares hav e been weak, •- ! especially rubbers, which were demorald ised owing to the decline of the raw ,- j article, but the Stock Exchange closed for >- the holidays with a slightly better tone. There is not much business, but the cessae tion of liquidations during the last day or h two has caused gilt-edged securities to take n a turn for the better. Industrials also ,f showed generally a firmer tendency. A t satisfactory feature is the genera] moveJ ment of foreign exchanges in our favour. The wool trade is very dull, but there ~ is an impression in some quarters that ,f there will be a revival after tho turn of n the year. Inquiries are being m&de, on e behalf of Russia for khaki yarns and cloth, I especially for greatcoats, "for prompt delivery. The quantity is not large; and 8 does not affect prices, but it is regarded r as a satisfactory symptom. Meanwhile 9 practically all mills in the West Biding a are taking a week's holiday. Little new business is in prospect, and short time s wiil become still shorter. e Butter prices continue steadily downy | ward. The Ministry of Food is now pury, r chasing Danish at £14 6s f.0.b.. a decline % | of 10s compared with the previous rate. The Ministry announces that it w-ill cease I buying any butter after March 31, when - j the Australian and New Zealand contracts a : terminate. Thenceforward private im- , | portation from all sources will be permis- ! sible. ! The weakness of metals has been very 9 pronounced. The set-back to electrolytic • copper is due to the continued lack of > demand and unsatisfactory American . advices. Contrary to the general hope, the fixing of prices by the Straits Settle- ' ments- Government has had little effect on " J tin, for which the demand from the 1 j United States ace] the Continent alike i 3 - j slack, making the immediate future un- ■, promising. The bad financial and indusc , trial outlook causes the expectation of I further weakness of spelter. The Belgians 1 i are refusing to sell at the present level. > 1 German prices, also, are above London 5 parity. Acute depression prevails in the cotton l trade. Business is very limited, and despite the reduced output stocks of both yarn and cloth are increasing. The finan- • cial situation is strained and rumours of - trouble in Manchester have caused con- . siderable uneasiness. Freights continue to decline. The ton- ' nage available is far in excess of the • demand. A number of British and Scan- " dinavian owners are laying up boats owing s | to the exorbitant price of bunker coal. *»j Many more will follow unless the price is s ! reduced. Mo fixtures for Australian wheat s j are reported, although all positions till 1 j April are obtainable for £4 10s a ton r j prompt, and even .cheaper. i i ~