BRITAIN’S TRADE

Southland Times, Issue 19278, 24 June 1924, Page 5

BRITAIN’S TRADE

THE MARKET REVIEWED UNEMPLOYMENT AT BRADFORD WILL THE BUTTER MARKET HOLD? (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, June 22. (Received June 23, 7.10 p.m.) The Stock Exchange has been at its quietest during the week, the Ascot meeting being responsible for decreased attendances and some loss of public interest, but there has been an underlying feeling of increased confidence. This is reflected particularly in the firmness of gilt-edged stocks. The new French Ministry is welcomed as a probable step towards a Reparations settlement, while the defeat of General Smuts has shewn no appreciable influence. In fact it has scarcely produced a ripple in the Kaffirs market. Gilt edgeds have felt the benefit of the relatively cheap money, and brokers report a steady absorption of high class investments. The New South Wales most recent issue, such a large percentage of which was left on the underwriters’ hands, has improved a little, and is now quoted at a 11 discount.

The Spectator says that the firmness of the investment markets is stranger in view cf the large creations in the present year. The Bankers’ Magazine shows the value of 365 representative stocks at the end of May to be £169,000,000 above the January level. The Spectator points out that if hopes of the restoration of the European political confidence are realised and followed by increased activity in international trade, there may later be a tendency for industrial stocks to benefit at the expense of gilt edgeds. The Yorkshire Post pointe out that the unemployment in the Bradford textile trade is heavier now than earlier in the year, and the postion is made worse by demands for increased wages which the employers have definitely refused. The recent decrease in the activity of the Bradfard mills is chiefly due to the decline of the trade in crossbred yarns with Germany, owing to buyers’ inability to pay as a result of the German restrictions on sales of foreign currencies. An interesting summing up of the position in the wool trade was given by Mr Ernest Gates at the annual meeting of Salts Saltaire Limited, Mr Gates said the wool trade had two sides. Britain’s position in the wool trade seemed to have widely increased at the expense of the expense of the manufacturing business; in other words, while Britain had maintained her supremacy as a wool transporter, merchant and financer, she was in danger of losing the manufacturing trade. Armchair economists advised that the solution was a reduction of the selling prices, but these simply made up the cost of raw materials, labour, interest and taxation. The British manufacturers were prepared to work for as little profit as the foreigner. They paid the highest wages in the world, except America, where there was high protection. Britain’s taxation was the highest in the world, and Britain could not obain wool cheaper, because competitors could obtain sterling credit for wool purchases as easily and cheaply as the British manufacturer. The results had been reflected in trade during the year. Wool had been relatively dearer than tops, tops dearer than yarn, and yarn dearer than cloth. To all except those in the strongest financial position, this was an extremely serious matter. Mr Gates, examining the prospects of overseas trade, pointed out the limited buying capacity of Europe and the difficulty of surmounting the United States tariff. He added: ‘The dominions are buying increasing quantities of cloth, and we have reason to show gratitude for the Preference we enjoy in those markets.” Serious attempts are being made in Yorkshire to manufacture wool packs of woollen materials, owing to the serious damage caused to jute packs through the admixture of jute fibre with wool, which defies eradication at every stage of manufacture, and entails heavy cost in burling cloth. Various woollen materials are being made up into packs in an attempt to reach a bag weighing below four pounds which will stand hooks and not stretch unduly. A Committee representing the various sect"-'.3 of the Bradford trade is supervising me experiments. The suggestion is that the wool buyer should pay half the extra cost, and that the used bags be reshipped to the colonies for use again. By this means it is expected that ultimately the cost to the grower will be no greater than the present Jute pack cost. All brands and marks will be on a detachable square of linen sewn on the bale.

New Zealand and Australian butter have enjoyed good prices, which are unusually high in relation to Danish. This is due to a falling off of Germany’s demand for Denmark produce, but the market appears to have reached the peak. Everyhting depends upon whether the French Government in its anxiety to keep down the cost of living extends the embargo on butter exports. As the matter now stands, the embargo will be lifted on July 1. Whenever it is removed, very heavy supplies will reach London, which,together with 10,000 casks of Siberian which have just arrived, and the expected increas in Home and Irish supplies, will probably lead to a reduction in prices.

Apples are maintaining their prices exceptionally well, but six or seven steamers are still to arrive, while the warm weather of the past few days is leading to a daily increase in the quantities of British and French soft fruits available.