COMMERCIAL.

Sun (Christchurch), Volume VII, Issue 2142, 27 December 1920, Page 11

COMMERCIAL.

BRITISH TRADE REVIEW.

PERIOD OF DEPRESSION.

I By Cable. — Press Association. — Copyright. I (A. & N.Z.) LONDON, Dec. 24. j The Stock Exchange has passed jthrough a period of depression, with a considerable amount of forced liquidation. The failure of Farrow ?s Bank has revived unpleasant rumours about somejwhat similar institutions, and the re[newed selling in Consols ami War loans is attributed to forced realisations on their account. The depression ■is also due to the absence of any bullish factors likely to revive speculative interest. Some fear is expressed that even the soundest undertakings may be troubled by the severe deflation of the commodity and stock markets. Values of industrial shares have been weak, especially rubbers, which are demoralised, owing to the decline in the raw article, but the Stock Exchange (dosed for the holidays with a slightly better tone. There is not much business passing, but the cessation of liquidations during the last day two caused gilt-edged stocks to take a turn for the better. Industrials also showed a generally firmer tendency. A satisfactory feature is the general movement in foreign exchange rates in our favour. The wool trade is very dull, but there is an impression in some quarters that there will be a revival after the turn of the year. Inquiries are being made on behalf of Russia for khaki yarns and cloth, especially for greatcoats for prompt delivery. The quantity is not large, and does not affect prices, but it is regarded as a satisfactory symptom. Meanwhile, practically all mills in the West Riding of Yorkshire are taking a week's holiday. There is little business in prospect, and short-time working will become still shorter. Butter prices continrfe steadily downward. The Food Ministry is now purchasing Danish at 226/- per cwt, f.0.b., a decline of 10/- per cwt as compared with the previous rate. The Ministry announces that it will cease buying any butter after March 31, when the Australian and New Zealand contracts terminate. Thenceforward, private importation from all sources will be permissible. The weakness in metals has been very pronounced. The set-back in electrolytic copper was due to the continued lack.of demand and unsatisfactory American advices. Contrary to the general hope, the fixing of prices for Straits tin had little effect on the market. The demand for the United States and the Continent alike is slack, making the immediate future unpromising. The bad financial and industrial outlook causes the expectation of further weakness in spelter. The Belgians are refusing to sell at the present level. German prices are also above the London parity. Acute depression prevails in the cotton trade. Business is very limited, and, despite the reduced output, stocks, both of yarn and cloth, are increasing, and the financial situation is strained. Rumours of trouble in Manchester have caused considerable uneasiness. • Freights continue to decline, and the tonnage available is far in excess of the demand. A number of British and Scandinavian owners are laying up boats, owing to the exorbitant price of bunker coal, and many more will follow unless the price is reduced. No fixtures for Australian wheat are reported, although all positions till April are obtainable for 90/- per ton, and prompt ■charters are even cheaper.

BANK OF ENGLAND RETURNS. (A. & N.Z.) LONDON, Die. 23. The Bank of England returns for the week ended December 22 afford the following comparison with those of the previous week: — Dec. 15. Dec. 22. £ £ Coin and bullion ..125,023,000 125,974,000 Reserve 14,025,000 11,629,000.. Proportion of reserve to liabilities, p.c. 0.65 7.70 Note circulation .. 131,230,000 134,582,000 Government deposits 19,401,000 13,770,000 Other deposits .. .. 126,470,000 136,031,000 Government securities 77.123,000 77,178,000 Other securities . . 72,207,000 78,914,000 Short loans, 5§ per cent.; three months bills, 6} per cent. GOVERNMENT SECURITIES. The following arc the latest quotations for Government securities, with a comparison with those ruling last week: — Last week. This week.

LONDON, December 23. Tlie foreign exchange rates on London afford the following comparison:— Par. Dec. 20. Dec. 23. Paris (fr.) .. .. 23.22* 59.80 69.67 C.hristiania <kr.) .. 18.159 23.53 23.07 Stockholm (kr.) .. 18.169 17.83 17.91 Calcutta (rpe.) (10 to gold sov) lGg 17i Montreal (dol.) .. 4.86 4.13 4.19 New York (dol.) .. 4.86 8.49 3.54 Yokohama (yen) .. 24J 33jj 33 SHARES. LONDON, December 23. Waihl, buyers 25/-, sellers 27/6. ENGLISH MARKETS. (A. & N.Z.) LONDON, Dec. 23. j Wheat and Cereals.—There is a holiday market. Little Is offering, and prices are ', nominally unchanged. Sugar.—The market is unchanged. Bradford Wool Market.—Business is small, i The tone of the market is improving, and prices of merinos are hardening. Cotton.— Liverpool quotation, American middling upland January delivery, 9.97 d per lb.. Rubber.—Fine hard Para is 1/1 per lb, plantation first latex crepe 10}, smoked ribbed sheet 9\. Jute.—December-January shipment £3B per ton. Hemp,—The market is quiet. DecemberJanuary shipment £52 per ton. Copra.—South Sea bagged, December-Feb-ruary shipment, £37 15/- per ton. Linseed 0i1.—£39 per {on, equal, to ; per gallon. 1 Turpentine.—loo/- per cwt, equal to 7/6 J. per gallon.

£ s. d. £ s. d. 2} per cent. Imp. Con. 44 2 c 45 5 0 "5 per cent. Imp. War 83 5 0 83 0 0 3$ per cent. Imp. War 82 10 0 81 10 0 5} per cent. C'wealth 86 5 0 96 2 6 5} per cent. C'wealth 94 5 0 93 17 6 N.S.W. 4's, 1938, Jan.July 73 0 0 73 0 0 N.S.W. 3J's, 1935-50, f April-Jan-.-July .. 61 17 6 C2 0. 0 N.S.W. 3's, 1933, April58 17 6 59 0 0 N.S.W. 5J's 94 0 0 93 15 0 N.S.W. 6»'s 101 2 c 101 2 6 Vic. 4's, 1821-6, Jan.July 81 17 6 82 5 0 Vic. 3Vs, 1929-40, Jan.- "* July .. .. .. 15 5 0 55 0 0 Vic. 3's, 1929-49, Jan.July .... .. 02 0 0 CI 15 0 Q'lnnd 4's, 1924. Jan.July .... .. 84 0 0 84 0 0 Q'land 3j's, 1921-24, Jan.-July .. .. 81 0 0 81 C 0 Q'land Si's, 1921-24, Jan.-July 97 0 0 97 0 n Q'land 3's, 1922-47, Jan.-July .. 48 0 0 48 0 0 N.Z. 4's, 1929, MayNov. .. 81 15 0 82 0 0 N.Z. 34's, 1940, Jan.July 65 15 0 66 0 0 N.Z. 3's, 1945, AprilOctober 57 10 0 57 1) 0 S.A. U's, 1910 or after 66 0 0 66 5 0 S.A. 3's, 1930, Jan.July 48 7 (! 48 10 0 Tas. 3*'s, 1920-40, Jan.July or, 0 0 65 0 0 Tas. 3's, 1920-40, Jan.July. fid 0 0 CO 0 0 W.A. 3j's, 1920-35, May-November .. 68 10 0 68 15 0 W.A. 3's, 1915-35, , May-November .. 66 17 e 66 12 e FOREIGN EXCHANGE RATES.