LONDON TRADE REVIEW.

New Zealand Herald, Volume LIX, Issue 18198, 18 September 1922, Page 8

LONDON TRADE REVIEW.

UNEASINESS ON 'CHANGE. TEXTILE INDUSTRY ACTIVE. WOOL MARKET FIRM. By Telegraph— Press Association— Copyright. (Keceived 5.5 p.m.) A. and N.Z. LONDON. Sept. 16. Events in the Near East and the breakdown of the Belgo-German reparation negotiations have caused some depression on the Stork Exchange, and thero has been considerable selling of gilt-edged securities. The sales were not entirely due to international political apprehensions, but partly to the maturing of a great number of options entered into at the end of June. It is also suggested in some quarters that big speculators, who sold out of industrials two years ago and purchased gilt : edged securities, are now selling the latter in order to re-buy leading industrials owing to signs of a trade revival. Another contributory factor is uneasiness regarding a possible advanco in the bank rate. The general position on the Stock Exchange is, as the Statist newspaper says, peculiarly difficult to analyse. On tho whole, the tendency appears to be downward in the case of investment stocks, and upward in the speculative division, but it is not definitely marked in either case. If trade improves to any extent money will flow from investment markets to trade channels, and quotations for highclass investments will be adversely affected. The danger that investment values will recede causes buyers to hold off, and j the risk that trade will not recover makes them chary of supporting moro speculative sections. There has been a slight improvement in foreign exchanges following the report that Herr Havenstein, chairman of the Reiehsbank, is arranging with the Bank of England to guarantee German bills. The recent depreciation of the American exchange is explained by a financial expert to be dne mainly to seasonal prepara- \ tions now being made by this country and j tho Continent for financing their _ pur- j chases of American produce, principally j cotton and wheat. Tins, of course, means J larger demands for dollars, which are nearly all bought in this market, and also j means sales of. francs, lire and other cur- I rencies in order to secure tho necessary j dollars. According to tho Ministry of Labour Gazette employment during August re- . mained bad, and the improvement which • has been in progress since the beginning of the year was not maintained at the j same rate as in previous months. There is marked improvement, however, in the. coalmining industry, and some improvement in the pig iron industry and iron j and .steel manufactures. The percentage of unemployed at the «nd of Augustj among trades unions making returns was j 14.4, compared with 14.6 at the end of July and 16.3 in August, 1921. The j average level of retail prices of com- j modities at September 1 was 79 per cent, j above the level of July, 1914, compared ■ with 81 per cent, on August 1- Thoj decrease is mainly due to the fall in the price of potatoes. Commenting on the wool position, a j veil known authority says that topmakers j in most, cases are adopting a protective policy. The volume of business is not large as buyers, in view of the near ap-1 proach of the colonial season, are in-1 clined to await developments. Spinners | -continue to be well employed and are j finding more interest on domestic account, but are not obtaining prices commensurate with quotations for tops and raw materia!!, and with each advance new! business becomes increasingly difficult, j Conditions in the manufacturing sections j show slow but satisfactory progress, in- i creased orders on some accounts being a j welcome feature. The situation generally | is sound and the demand is extending. • In fact the political and economic crisiß j on the Continent has had little effect on the British wool market, but it coincided ! with an appreciable advance in values, j which is remarkable evidence of the | strength of raw material and improved j conditions in consuming centres. The Continental demand shows no abatement, j Machinery everywhere is well employed. j The German- textile trade continues pros- j perous and seems able to finance all neces-1 tary purchases of raw material. The outlook for raw material presents ! encouraging features. A strong opening ' of the colonial season is generally anti- \ cipated. The position of Merinos and i fine crossbreds is gradually being strengthened by steady expansion of consumption, and anxiety regarding the future of the German demand is hardly so ! acute. The possibility of an early set-1 tlement of the American tariff fore-! shadows increased demand on the United f States' account. j '"' ■