LONDON TRADE REVIEW.

New Zealand Herald, Volume LX, Issue 18316, 5 February 1923, Page 7

LONDON TRADE REVIEW.

STOCK EXCHANGE WEAKER,

IMPROVING INDUSTRIES.

WOOL AND THE FRANC. By Telegraph— Association— (Received 6.35 p.m.) A. and N.Z. * ~ LONDON, Feb. 3. The stock markets have failed to maintain the strong position of a fortnight ago. The accumulated influences of the Ruhr occupation, the wranglings at Lausanne, the American debt position, and the crashing of Continental exchanges brought about a much more subdued frame of mind among operators, with the result that the volume of business fell away greatly early in the week. Gilt-edged securities lost some of their buoyancy. The position improved distinctly, however, on Thursday, when the American debt decision was announced, and more hopeful news came from Lausanne. The week wound up in far better style than it opened. Interesting comments on ■ the trade position were mad© by the chairmen at meetings of two large banks. Dr. Walter Leaf, of the London County, Westminster, and Parr's Bank, said it was clearly impossible to hope for any great revival in trade from any old customers in Central Europe, whose recovery was entirely bound up with Germany's. We must draw what little consolation we could from the fact that so important an industrial rival as Germany was virtually withdrawn from competition except in certain classes of goods in which she practically held a monopoly, notably, dye stuffs. But despite the adverse conditions there were definite signs of a strong revival which was already doing something to diminish unemployment here, and which seemed likely before long to do much more.

Sir Harry Goschen, chairman of the National Provincial and Union Bank of England, said we expected a more rapid recuperation of the world's trade than had proved possible, but there was no reason to despair. Certainly, some progress had been made. We had secured a load in exports of iron and steel, which 12 years ago Germany had acquired from us. Five years ago the United States headed the list. For the first eight months of 1922 our exports were 2,060,000 tons, compared with the United States' output of 1,413.000. Increased orders were being placed here, and in view of the great world-wide need for iron and steel productions for railways and other undertakings, there were grounds for hoping for increased prosperity in this branch of trade.

The- setback in Merino wools at the London sales was attributable mainly to the extraordinary conditions on the Continent, and particularly to depreciation of the currencies, which have reduced Continental competition to a minimum. French and Belgian buyers can operate only at prices which will allow for the depreciation in the value of the franc, and the Belgian demand is also affected by the continuance of the strike at Verviers. There was some competition from Germany, but much less than at previous sales. Americans and Home trade are the principal purchasers, and catalogues generally are being well cleared, the reports of strong markets in Australia tend; ing to counteract the effect of the decline of the Continental demand.

Australian mercantile circles were relieved by tho news of the end of the controversy between the Commonwealth Line and the conference, and that the freight rate-cutting war had been averted, for it was generally recognised that a fight between Government and private interests, with posnible reduction of rates to an uneconomic level, could serve no good purpose, but must have entailed enormous losses. What shippers to Australia want is stability of freight rates, which ensures that no one gets an advantage over any other.