TRADE REVIVAL

Taranaki Daily News, 5 February 1923, Page 5

TRADE REVIVAL

SLOW PROGRESS MADE. SOME BRIGHT FEATURES. INFLUENCE OF. GERMANY. By Telegraph.—Press' Assn.—Copyright. Received Feb. 4, 5.5 p.m. London, Feo. 3. The stock markets have failed to maintain their strong position of a fortnight ago. The accumulated influences of the Ruhr occupation, the Lausanne wranglings, the American debt position, and the creating of Continental exchanges brought about a much more subdued frame of mind among operators, with the result that the volume of business fell away rather early in the week, even “gilt edged” securities losing some of their buoyancy. The position improved distinctly on Thursday when the American debt decision was. announced. Then more hopeful nows came from Lausanne and the week woimd up in far better style than it opened. Interesting comments were made on the trade position by the chairmen of meetings of two big banks. Mr. Walter Loaf, of the Westminster Bank, said it was nearly impossible to hope for any great revival of trade from any of the old customers iri Central Europe, whose recovery was entirely hound up with that of Germany. He added: •“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must draw what little consolation we can from the fact that so important an industrial rival as Germany had virtually withdrawn from competition, except in certain classes of good*, in which she practically hold a monopoly, notably dyestuffs, but despite the adverse conditions there were definite signs of a strong revival, which was ; already doing something to diminish 1 unemployment here, and which seemed ; likely before long to do much more.”

Sir Harry Gosehen. of the National Provincial Bank, said: “We have expected a more rapid recuperation of the world's trade than has proved possible, but there is no reason to despair. Certainly some progress has been made. We have secured the lead in exports of iron and steel, which twelve years ago Germany had acquired from us, and 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 1.413,000, tons for the States. Increased orders are being placed hero, and in view of the groat world-wide need for steel and iron productions for railways and other undertakings there are grounds for hqping for increased prosperity in this branch of trade.”

The setback in merino wools at the London sales is attributable mainly to the extraordinary conditions on the Continent and particularly the depreciation of currencies, which have reduced Continental competition to a minimum. French and Belgian buyers can only operate at prices which will allow for the depreciation in value. The French and Belgian demand is also affected by the continuance of the strike at Vcrviers. There is some competition from Germany, but much less than at the previous sales. America 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.

Supplies of Australian and Now Zealand butter just arrvied, or due by February 7, amount to 445.000 boxes. This may be rather more than the market is capable of absorbing immediately and it is therefore possible that prices may rise slightly, but future Australian and New Zealand supplies are light and the dry weather in the Argentine is seriously affecting the output. Butter is, therefore, bound to be scarce later on, and the future position- looks very strong. 'Stocks of cheese 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.— Aus.-N.Z. Cable Association.