COMMERCIAL REVIEW

Timaru Herald, Issue 170268, 13 July 1920, Page 7

COMMERCIAL REVIEW

BRITISH MONEY —— • By Electric- Teleffracli—Coajrich^^ Australian and N.Z. Cable LONDON, Julj^lO® Jhe turn of the half-year usual abundance of funds ill tlie inofiejTS market. The supply at the week-end,<?| after repayment, to the Bank of Etag-iJ land and purchases of new ..TreaSfrvCSE bills, remained sufficient to keeppEett rates for short loans lower the end of .June, though there ■was?no® perceptible improvement, in longer idated advances. . /*-& The jnaiket is less appreliensivetS?-* gardirig the future than a fortniSit " ago, when it feared an eight, per rissi. bank rate ow ing to a. - iof currency notes approaching** "-the maximum limit. An increase dri tlie-' - bank rate is now believed cepting for abnormal doirstful factor being the monetary"-® situation in New York. is generally made thafc the"t^vem- 3 3fe ment should declare its garding. the so-called dear -imoney policy, in order to inspire tio 7 biisiness; : -* community with greater ' confidence.''£ J.he. foreign exchanges continue dominated by the Spa peeially the French;, Belgian Italian. The half-yearly - of tlie leading banks equal those' ,jof>£ January. It is generaly TinderstCKid-'® that, tli eir gross Probably establish new records, grooving expenses depreciation vestments, and slackening industnaL demands are considered to render policy necessary. - ~ The Stock Exchange shows more * cheerful,jness, _ and steadiness, !:J though there is no great rccoveiy^< certain exceptions, mostly sound inent_ shares, but the market is- immies- i tionably more confident, dealers , lieving that a better basis has ;heen.is? reacned in the" foreign outlookjiaE&iS the hope that concessions ■■'will, made in the excess profits durv -jhaa'' '$ also contributed to better* condjtiorisl 'i'S' At the same time, the investor appar-~i|' ently considers that the abnormal -in- 7 dustrial profits have limit, consequently there is ah-awabeiifeSit ing interest in gilt-edged stocks. * Ship; V*3 pmg shares show an"upward the prospect of, complete 7>ut the drop in foreign freights :5&mM disturbing; factor. - , m%gi

- - 1 TILA.DE TENDENCIES. r "Z£'OZ ! . 'yjpa^ati Though the Board of Trade returns zfi for June are less favourable than the - i May totals the half-year's figures ■ are'l lf i quoted to showthe progress made jn. - restoring the trade balance, but - tlis i question, is asked if progress is rapid-"® enough. The outstanding featurcvSs' " the continued slackening off in iievr" business. This applies in. a varying *° r degree in Manchester, Bradford. -Bir- 'J iningliam, Sheffield, Nottingham and;-"'lf Micldiesboro, buyers satisfying merely;. i> their imiisaiate requirements, ing that prices have not reached bottom.' A more serious 'j; the further cancellations of Indian orders through depreciationr.of • the' silver currencies,, affecting especially the Lancashire piece goods trade. ~"i

Extravagant purchasing by the mills j in the boom period aggravates ,'the—ts. situation- in Lancashire, but the' au-r £; thorities there, as in other"industries; ■::/ i assert that a slump in the c. sense is impossible. Owing to JtEef high costs of raw material andla;'" hour, also the practical absence % manufacturers' stocks, there has been. j J 110 over-production, and it is contended that the world : s demands axe far from; ~'i satisfied. A revival is not anticipate! before the autumn if industrial bks, notably among the •wool opera- '- •' lives and miners, are averted. -■<£ - Tramp steamer freights continue ' downward. An important factor ,=** l* Uie United States embargo on coal exf z 1 ports, affecting immediately five him-.-.

dred vessels. There lias been a da??cline of about 15 per cent in the three weeks. Almost the only bright spot in.y. r i freights is the inquiry for coal tonnage 5-v; ! from Newcastle;, .New South" "Wales, 'aJ • 145s to the Mediterranean and,l7oste;- ;'~f 175 to Scandinavia. Shipowners ana f shipbuilders are alarmed at tie increase, in the cost of new v 7 also at_the effect of the Genoa. .Con-.*. vlferenoe'9 decisions. It is" reporiJxl that manv orders liave 1 been cancelled. . ' The newspaper "Economist" sajaj that the monthly index figures of >k ; ' wholesale prices for June show the , largest fall for any month for some 3 ears, especially in textiles, but cerealsVr"f. :uid meat reached record high figares™r A feature of the produce markets the last. fortnight was tJie slackness' fibres, except flax, and the stagnation 7' :i i in tallow said in trade circles to-be almost unprecedented. The non-ft^ J 3j rous metal trade believes are finding a sounder basis owing _to -.' ; the elimination of the speculative elSr - - ment and transference of metal ? stronger hands. At the same tiroe'.v.y fluctuations Lave caused buyers to > main cautious. Z- ** "SS *- _ The "Metal Bulletin" considers the worst stage of deflation has passed^-:s though the time is not ripe for a sus- : , tained apwaid move. The daily supplies "of English. meai£' ;fi at Srnithfield continue large. ~^-P!ricS r W£-S are now little above the control Jevel|f and there is a corresponding .'shririlg'age in the eonsumptpion of'iihe:impGri&« : cd meat. - - 2f ■ - "K-"