“IMPROVING”

New Zealand Times, Volume L, Issue 11650, 15 October 1923, Page 8

“IMPROVING”

BRITISH TRADE POSITION YORKSHIRE BELIEVES THE TIDE HAS TURNED. DEMAND FOR CROSSBREDS. By Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cab'e Association. (Received October 14, 11.5 p.m.) LONDON, October 13. Although the long-expected and eagerly desired improvement in trade in Great Britain has not yet materialised, some of those beet acquainted with trado conditions claim to see signs of a slight improvement in some directions. One well-known financial writer saya that although it is not a matter on which bankers are inclined to be optimistic, he finds a certain amount of agreement in financial circles that in more than one industry things are looking just a little brighter. It is not improbable that to some extent these signs of improvement may be directly connected with special orders relating to the work of rebuilding Japanese cities, but any special stimulus arising therefrom will be set off by the inevitable diminution for the time being of ordinary trading operations with Japan. Tnere is, however, a feeling that the prices of commodities may have nearly touched bottom, and this gives buyers greater confidence. The same signs of trade expansion aro also revealed to gome extent in the slight growth of banking deposits, which show quite a fair advance, compared with March. , ‘ ‘EVIDENT IMPROVEMENT. ’ * Another financial expert points out that the icvelant statistics show that September, 1922, marked the lowest point in the post-Armistice trade curve. • There has not been a progressive recovery since then. On the contrary, there .was a well-marked reaction in the late spring, due mainly to the depression in an important group of Continental currencies, which restricted their buying powers, while it gave them the additional advantages in foreign competition with our exports, but over the 12 months. since September, 1922, regarded as a whole, there ha® been a very evident improvement in trade. Other financial writers axe hardly as optimistic in their outlook, and they regard as striking evidence of the continued trade stagnation tlie fact that on the Stock Exchange gilt-edgeds have been compartively firm at a time when all speculative markets have been inclined to drift. COLONIAL LOANS.

Tho strength of gilt-edgeds and the steadiness of the investment demand have indeed been tho outstanding points of the Stock Exchange during the past fortnight. There could not be a better illustration of this than the brilliant success of the Commonwealth loan, following so closely on Victoria’s large issue. The feature of both loan® was tho absence of by speculators, and profit-takers, which was shown by the fact that both loans command substantial premiums, the Commonwealth three-eighths, and the Victorian seveneighths. Following these there comes on the market a Nigerian loans of £5,700,000 at 4 per cent., issued at 98, redeemable in 1963. whioh promises to be equally successful. BRADFORD OPTIMISTIC.

The feature of the wool trade is the reviving of tlie Yorkshire demand for ciossbreds, at both Liverpool and Hull sales. Bradford buyers took the bulk of the offerings, and their requirements seem to be still unsatisfied. The position is well described in a Yorkshire newspaper, which says: “Tho clouds of pessimism which have so leng overhung the Bradford market arc being gradually but surely dispersed by the increasing liveliness in the demand for crossbred top 3 and yarns. Even those whose business is largely confined to merinos are influenced by the more cheerful atmosphere, although they have really nothing tangible on which to base a better view of the outlook. “Topmakers have for the time being almost abandoned the attempt to make profitable prices for merino tops. When full allowance is made for difficult position of merinos, the fact remains that business is improving. It is not merely a question of a firm here and there having booked a few orders. With one accord all report they are doing business both on Home and export account Indeed, it seems as though the tide has turned in a double sense. There is good ground for believing that the worst of the depression has passed, and there is also a very definite world-wide movement in favour of crossbreds. Distributors both at Home and abroad are stocking and displaying crossbred cloths because they are cheap and being used to increasing extent by the ready-made clothing trade, because they produce men’s wear that is saleablo at a price m<fr© in harmony with the reduced purchasing power of people. It is so also in America. BUTTER TRADE QUIET. “The butter trade remains exceed ingly quiet, but importers are not despondent. although their optimistic hopes or a fortnight ago have not been realised. Buyers have abstained from operating in the hope of forcing prices down, hut there is undoubtedly a shortage of supplies, and before leng the demand must ariee again. To quote the report of one of the dairy inspectors: “We do not think this state of trade can last long. We look forward to a much brigher market at the lower prices.”-