TRADE POSITION

New Zealand Times, Volume L, Issue 11436, 5 February 1923, Page 10

TRADE POSITION

STOCK MARKET WEAKER “THERE ARE DEFINITE SIGNS OF A STRONG REVIVAL.” BANKERS’ OPINIONS. By Telegraph.—Press Assn.—Copyright. Australian and N.Z. Caole Association (Received February 4, 5.5 p.m.) LONDON, February 3. The stock markets have failed to maintain the strong position they had a fortnight ago. The accumulated influences of the Ruhr occupation, the Lausanne wranglings, the American debt position, and t)je crashing . Continental exchanges have brought about a much more subdued frame of mind among operators, with the result that tne volume of business fell away greatly early in the week, over the gilt-edgeds losing some of their buoyancy. The position improved distinctly on Thursday when the American debt decision was announced. More, hopeful news came from Lausanne, and the week wound up in a far better style than it opened. GERMANS HAVE. WITHDRAWN. Interesting comments were made on the trade position by the chairmen of the meetings of two big banks. Mr Walter Leaf, of the Westminster Bank, said it was clearly impossible to hope for any great revival of trade from any old customers in Central Europe, whose recovery was entirely bound up with Germany’s. We must draw what little ■ consolation we can from the fact-that so important an industrial rival as Germany had virtually withdrawn from competition, except in certain classes of goods in which she practically held a monopoly —notably in dyestuffs. But despite the adverse conditions there were definite signs of a strong revival which was already doing something to diminish unemployment here and seemed likely before long to do much more. IRON TRADE OURS.

Sir Harry GosclVin, of the National Provincial and Ui(ion Bank, sand: “We expected a more rapid recuperation of the .world’s trade than has proved possible, but tlie.re is no reason to despair. Certainly some progress has wen made. We have secured the lead in exports of Iron and steel, which 12 years ago Germany 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 export of 1,413,000 tons. “Increased orders are being placed here, and in view of the great worldwide need for steel and iron productions for railways and other undertakings there .are grounds for hoping for increased prosperity in this branch of trade.” WOOL PRICES. The setback in merino wools at London sales is attributable mainly to the extraordinary conditions on the Continent, 'and particularly to the depreciation of currencies, which have reduced Continental competition to a minimum. The French and Belgian buyers can only operate at prices which will allow for depreciation in value. .The French and Belgian demand is "also affected .by the continuance of the strike at Verviers. There is some competition from Germany, hut much less than at previous sales. The Americans and the Home trade are the principal purchasers, and catalogues are generally being well cleared. Reports of strong markets in Australia are tending to counteract the effect of the decline in the Continental demand. BUTTER AND CHEESE.

Supplies of Australian and New Zealand butter just arrived or due by the 7th, amount to 445,000 boxes. This may be rather more than the market is capable of absorbing immediately. It is therefore possible that prices may ease slightly, but future Australian and New Zealand supplies are light, and the hot, dry weather in the Argentine is seriously affecting that country’s ■ oiftput, so butter is bound to be scarce later on, and the future position looks very strong. Cheese stocks are very light, but high retail prices are checking consumption, and' as a -good quantity of New Zealand is coming along a reduction in Home prices appears likely.