BRITAIN'S TRADE OUTLOOK.

Timaru Herald, Volume XCVIII, Issue 18084, 24 June 1924, Page 7

BRITAIN'S TRADE OUTLOOK.

Stock Exchange Confidence.

WOOL MARKET PROBLEMS.

By Cable—Press Association—Copyright. Received 5.5 p.in., June 23. LONDON. May 23. The Stock Exchange lias been at its quietest during the week. The Ascot Meeting was responsible for decreased attendances, and some loss of public interest, but there has been the underlying feeling of increased confidence. This is reflected particularly in the firmness of gilt-edged stocks.

ABSORPTION OF GOOD STOCKS. The new French Ministry is welcomed as a probable step towards the reparations settlement, while the defeat of General Smuts has shown no appreciable influence; in fact, it scarcely produced a ripple in the kaffirs’ market. Gilt-eclged stocks have felt the benefit of relatively cheap money. Brokers report the steady absorption of high class investments. 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 £l3 10s discount. . The “Spectator” says the firmness of the investment markets, is stranger in view of the large creations in the present year. The Bankers’ Magazine shows that the value of 365 representative stocks at the end of May was £169,000,000 above the January level. Tho “Spectator” points out that if the hopes of the restoration of 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-edges. TEXTILE TRADE. The “Yorkshire Post” points out that unemployment in the Bradford textile trade is heavier now than earlier in the year, and the position has been made worse by demands for increased wages, which the employers have definitely refused. The recent decrease in the activity of Bradford mills, was chiefly due to the decline of trade in crossbred yarns with Germany, owing. to buyers’ inability to pay, as the result of restrictions on sales of foreign currencies.

WOOL TRADE OUTLOOK. An interesting summary of the position of the wool trade was given by Mr Earnest Gates, at the annual meeting of Salts Saltaire (Limited), whose mill, Mr Bruce, Mr Massey, Mr Lawson, and others recently visited. 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 manufacturing business. In- other words, while Britain had maintained her supremacy as wool transporters, merchants and financiers, she' was in clanger of losing her manufacturing trade. Armchair economists advised that the solution was a reduction in the selling price, but these were simply made up of the cost of raw materials, labour, interest and taxation. 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. Britain could hot obtain wool cheaper, because her competitors could obtain sterling credit for wool purchases a 3 easly and cheaply as British manufacturers. The result had been reflected in the 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.

SERIOUS DIFFICULTIES AHEAD. Examining the prospects of oversea trade, Mr Gates pointed to 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. 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 material, owing to the serious damage caused to jute’ packs through the admixture of jute fibre with wool, which defies eradication at every stage of the manufacture, and entails heavy cost in curling the cloth. Various woollen materials are being made into packs in an attempt to reach a bag weighing below 41bs, which will stand the hooks and not stretch unduly. A committee, representing various sections of the Bradford trade, is supervising the experiments. The suggestion is that the wool buyer pay half the extra cost, and that the used bags bo re-shipped 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 costs. All brands and marks would be on a detachable square of linen sewn on the bale.

PRODUCE MARKETS FAVOURABLE. New Zealand and Australian butter enjoy good prices, which are unusually high, in relation to Danish. This is clue to the falling off of Germany’s demand for Denmark produce, but the market appears to have reached the peak. Everything depends upon whether the French Government in its anxiety to keep down the cost of living extends the embargo on butter exports. As (ho matter now stands, the embargo will ha lifted on Ist July. Whenever it is removed, very heavy supplies will reach Loudon, which together with 10,000 casks of Siberian just arrived, and the expected increase in Home, and Irish supplies, will probably lead to lower prices.

SALES OF APPLES.

Apples are maintaining their prices excepttonally well, but six or sex en steamers have still to arrive, while the warm weather of iho past few days is leading to a daily increase in the quantities of British and French soli, fruits available.