TRADE REVIEW?

Taranaki Daily News, 15 November 1920, Page 5

TRADE REVIEW?

DEPRESSION FOLLOWS BOOM. LITTLE HELP TO PUBLIC. NO GBEAT FALL OF PKICES. By Telegraph.—Press Assn.—Copyright, Received Nov. 14, 5.5 p.m. London, Nov. 13. Continental exchanges are demoralised, and they displayed much feverishness. This was mainly due to France's sudden heavy rush to cover exchange commitments in connection with recent heavy imports of Americxn goods and produce, which were arranged some time ago, but the necessary exchange was not bought, owing to a belief, which proved erroneous, that the value of the franc would improve with the flotation of the French Government loan. Other European exchanges continued to advance, German marks reaching 310, but the advances, though theoretically favorable to Britain, are really unsatisfactory, and merely serve to reduce Com tinentals' buying power in our markets, thus severely hampering trade. The monetary situation arising from the foreign exchanges largely dominates the London Stock Exchange, causing business to he confined mainly to investment stocks, as speculative issues are considered to be,too dangerous. An improvement in business is unlikely till the conditions are more settled. The mining market is particularly dull, except the Barrier Group, which is enjoying a line spurt on the news of the settlement of the strike, and many would-be buyers are unable to obtain shares. The metal markets are dull. The demand for tin is very small, being hand-to-mouth, but only a few users have covered forward requirements, so that when confidence is restored and consumers resume buying tiiere may bo a sharp advance. The settlement of the Broken Hill strike is held responsible for the collapse in lead, but in the present state of the markets any excuse is good enough for lower quotations. The outlook for wool is slightly more cheerful, as machinery requirements are becoming more insistent, and there is better inquiry from the United States and several European Countries, Ibut Bradford top makers and spinners are still holding off, and will not operate on the present basis of raw material values. The Manchester Guardian, reviewing the position in the wholesale drapery trade, says the situation has changed greatly since March. In place of a boom there is now widespread depression, much short time and unemployment, while orders both at home and abroad have fallen off, due largely to the adverse Continental exchanges and a growing belief that prices are likely to continue to fall. Householders have benefited to some extent, hut finished articles generally do not show similar reductions to raw material, owing to the advanced wages in every process of manufacture, higher rout, higher rates of transport, taxation, and other charges. In face of these factors it is difficult to aecount for the belief in an avalanche of falling prices within the next few months, or to find evidence to support it. The Guardian shows that of seventyfive items in the drapery trade the wholesale prices of forty-one were advanced in comparison with March, sixteen have been reduced, and eiglfteen are unchanged. Advances are usually more substantial than reductions.—Aus'N.2. Cable Assn