BRITAIN'S BUSINESS.

New Zealand Herald, Volume LX, Issue 18458, 23 July 1923, Page 7

BRITAIN'S BUSINESS.

' t ' * •«• ■■« ■—~', -~» "•" >....'■.',■ STOCK MAEKET EECOYERS DISTURBING TRADE OUTLOOK ORDERS NOT REPLACED. By Telegraph Association— Copyright. (Received 4.50 p.m.')' . . A. and N.Z. ;.,„ ; , LONDON. July 21. The Stock Exchange recovered quickly from the depression which followed theadvance of the bank rate, and with mone- . tary conditions easy gilt-edged securities ha via shown considerable strength, and price;} have improved all round. Outside the jtilt-edged market there has not been -j much activity, and as the holiday'-season approaches its height' there is not much prospect of any increase' in the. volume of business, but the tone of' the Stock Exchange generally is cheerful. There is a distinct disposition to take a very hopeful view of the Ruhr' and reparation outlook in anticipation that the British reply to the German Note , will have satisfactory results. ■'.." ~'.■-.."' " The dockers' strike has naturally pre vented home railway stocks from participating in the improvement, but it has had • singularly little effect on industrials generally.- t ' j ' British SoutL Africa Company. The British Government's award ox ! £3,750,000 to the British South ;. ; Africa. Company recalls one of .the- greatest Stock : Exchange disappointments. Thirty years ago there was a great boom in "chartered shares," as (he shares of the company were popularly called. For a month or so they rotesteadily : daily, all classes of the public investing on .Mr. Cecil Rhodes' : advice "to bay them for your graj.tl ■'..''. J children." The price rose to £9. • Tten suddenly the market collapsed, and the price fell to. £1. Recently they had been quoted at 9s. Now they have recovered to 15s in anticipation of; a cash ' distribution out, of the Government's - award. r .'■ [■ '::'--■■ :;.-''■■; ■:';■.

The trade position in Great Britain is disappointing. A; special report, published by the Economist,.'says that the volume of trade continues on a': large scale, which is very much better than this time last year, and is, near the'peak point reached ' thin, spring, but unfortunately current orders are not being replaced, and the period; ahead for wlijch industry has assumed orders is rapidly shortening. In some i, cases the end of output -is alarm- . ingly. near/ /•; Two ■ features ef ;: special interest, are: On the one hand, ths Bradford ■ spinning industry; which has been particularly hard;-'hit^ : by low prices and lack . of. Continental ! demand; : on;;i the othei; hand, tie electrical engineering trado, which is fully booked: with orders., ; ' - Complaint of Hour ■ Bumping!.

; Early:; in .: Apitfl 'Australian 'flour im- . porters . \ver .greatly perturbed by > a re- ;. ; commendation of ; ;the.Agricultural Tribui nal that imported flour, must be / accom- ■ :) : . . panied /with/25 ■ per : cent.;; of .offal. Th« ''.'■< • proposal received imuch -opposition, .and ;|';W 1 finally the Government, abandoned it. --It V?-; '■ wa a suggested then that: y : tJso>■ proposal -..■ ~ emanatedfrom the United Kingdom mil-: • l": lers. This suggestion has been ■ fully .it confirmed by. a ; speech ofc the chairman . > at>: a ; -meeting'| of : the , Associated • London •■ Flour. Millers,/. a holding , company, ctoriv- .. ■ ■ ' ing its income mainly frost shares in | milling.'(companies. The 'chairman .paid f that : the keenness - of, competition which. , : : • milling companies had met in tho . past : : yeacr«wesj unparalleled in :• the history of '.:, • the 'milling'-trade. .The .". unsatisfactory ■ I, condition -.* of ; the ." trade - was largely v 1 due to jV 1 two \ ; causes : r First, .: the ', large quantity of ■■■> imported flour; , , second, the large surplus capacity of mills r of \ this 'country. British millers, > particu- • larly in ports, always faced keen compe- . ■ tition from foreism and Colonial .millers who were well acquainted with the scienca of dumping. It •■• was calculated that '' / mills in: England and Wales running normal, hours, could manufacture at least 2& to 30 per cent, more flour than was re * quired, - equivalent to > fcomo .; 10,000.000 sacks a year. This resulted -in much : ; flour ' being ; sold '• below cost price. The . situation was also affected by the decrease of consumption, which ::was estimated ■ v to' be 10 per cent, below that of a'decade : .The ; abandonment of the wool sales ia not regarded as unfavourable for th« trade, the : general impression ; being that the re-arrangement of the sales to commence on ' September 4 will make for ~ ... strength in- the market;'as the opinion is; pretty general, that values should improve, ~ especially in view of 'the" large consump- ■"■ tion of "the Continent. , Meanwhile Bradford y shows alight indicawon/i • of recovery •;■ from the recent * acute depression." !"t No in- m/. crease of r demand is noticeable, but the tone iB rather betterv^d. traders are in- ; clined to take "mora-! optimistic view of ' the future. , ;;..-,. ' (