TRADE PROGRESS

New Zealand Times, Volume XLVI, Issue 10640, 13 July 1920, Page 6

TRADE PROGRESS

A BRITISH REVIEW BUYERS WAITING FOR DROP IN PRICES. By Telegraph—Press 'Assn.— Copyright Australian and N.Z. Cable Association. LONDON, July 10. Though the Board of Trade returns for Juno are less favourable than in May. iho totals for tho half-year arc quoted to show tho progress mud© in restoring tho trade balance. But the question is asked whether the progress is rapid enough. An outstanding feature is tho continued slackening off in new business. This applies in varying degrees in Manchester, Bradford, Birmingham. Sheffield, Nottingham, find Midcllesborough. Buyers are satisfying merely their immediate requirements, believing that prices have not reached bottom. A more serious feature is the further cancellations of Chinese and Indian orders, through the depreciation of tho silver currencies, affecting especially tho Lancashire piece goods trade. Extravagant purchasing by the mills in the boom' period aggravates tho situation in Lancashire. but the authorities there, as in other industries, assert that a slump in the ordinary sense is impossible, owing to the high costs of raw material and labour, and also the practical absence of manufacturers’ stocks. There has been no over-production, and it is contended that the world’s demands are far from-satisfied. A revival is not 'anticipated before thu autumn if industrial troubles, notably among the wool operatives and miners, are averted. Tramp steamer freights continue to fall. An important factor is the United States embargo in coal exports, which immediately affects five hundred vessels. Time charters have declined about fifteen per cent, in three weeks. Almost the only bright spot in freights is tho inquiry for coal tonnage from Newcastle.' New South Wales, at 145 s to the Mediterranean and 170 s to I7os to Scandinavia. Shipowners and shipbuilders are alarmed at the heavy increase in tho cost of new tonnage, and also at the effect of. the Genoa Conference decisions. It is reported that many orders have been cancelled. The “Economist” says that the monthly index figures of wholesale prices in June show tho largest fall tor any month for some years especially in textiles: but cereals and meat reached record high figures. A feature of the produce markets in the last fortnight was the slackening in fibres, except flax: and the. stagnation in tallow is said in trade circles to bo almost unprecedented. The non-ferrous metal trade believes prices are finding a sounder basis owing to the elimination of the speculative element and the transference of metals to stronger hands. .At the same time fluctuations have caused buyers to remain cautious. The “Metal Bulletin” considers that the worst stage of deflation has passed, though tho time is not ripe for a sustained upward move. The daily supplies of English meat at Smithfield continue -to be! largo, and the prices are now little above tho control level; and there is a corresponding shrinkage- in the consumption of imported meat.