BRITISH TRADE.

Star (Christchurch), Issue 17171, 15 October 1923, Page 7

BRITISH TRADE.

FORTNIGHTLY REVIEW. "By Tel err a pb—Press Association—Copyright Australian and N.Z. Cable Association. LONDON, October 13. Although the long expected and eagerly desired improvement in trade in Great Britain has not yet materialised. some of those best acquainted with trade conditions claim to see signs of slight improvement in some directions. One well-known financial writer says: ** Although it is not a matter on which bankers are inclined to be optimistic, ! find a certain amount of agreement in financial circles that, in more than one industry, things are looking just a little brighter. It is not improbable that to some extent these signs of improvement may be directly connected with special orders relating to the work of rebuilding Japanese cites. Any specal stimulus arising therefrom will bo set off by tin* inevitable diminution for the tme being of ordinary trading operations with Japan. There is. however, a feeling that commodity, prices may have nearly touched bottom, and this gives buyers greater confidence. The same signs of trade expansion are also revealed to some extent in the slight growth of banking deposits, which show quite a fair advance compared with March”

Another financial expert points out that relevant statistics show that September. 1922, marked the lowest point in the post-armistice trade curve. There has not been progressive recovery since then. On the contrary, there was well marked reaction in tlio late spring, clue mainly to depression in an important group of Continental currencies, which, restricted their buying powers while it gave them additional advantage in foreign competition with our exports ; but over the twelvemonth since September. 3922, regarded as a whole, there has been a very evident improvement ia trade.

Other financial writers are hardly so optimistic in their outlook, and they regard as striking evidence of continued trade stagnation the fact that on the Stock Exchange gilt-edged securities have been comparatively firm at a time when all speculative markets have been inclined to drift. The strength of giltedged securities and the steadiness of the investment demand have, indeed, been outstanding points of the Stock Exchange during the past fortnight There could not l>e a better illustration of this than the brilliant success of the Commonwealth loan. following so closely on Victoria’s largo issue. A feature of both loans was the absence of stagging by speculators and profit-tak-ers. which was shown by the fact that both loans command substantial premiums, the Commonwealth $ per cent and the Victorian £ per cent. Following these, there was the Nigerian loan of £5,700,000 at 4 per cent, issued at £9B and redeemable in 19G3. which promised to be equally successful. the wool trade.

A feature of the wool trade the reviving of the Yorkshire demand for cross-breds. Both at the Liverpool aml the Hull sales Bradford buyers took the bulk of the offerings, and their requirements seem to be still unsatisfied. The position is well described in a Yorshire newspaper, which says: “The clouds of pessimism which so long overhung the Bradford market are being gradually surely dispersed by increasing liveliness in the dfytnand for cross-bred tops and yarns. Even those whose business is largely confined to merinoes are influenced 1 tlio tm

cheerful atmosphere, although they have really nothing tangible on which to base a better view

of the outlook. Topmakers have for the time being almost abandoned their attempt to make profitable prices for merino tops. "When full allowance is Jma|de fop the difficult position of merinoes, the fact remains that business is improving. Jt is not merely a question of a firm here and there having hooked a few orders. With one accord all report that they are booking both on the Home and export account. Indeed, it seems as thougn the tide has turned in a double sense. There is good ground for believing that the worst of the -depression has passed, and there is also a very defi,niie world-wide movement in favour of

cross-breds. Distributors both at Home and abroad are stocking and displaying cross-bred cloths, because they are cheap. They are being used to .an increasing extent in the ready-made clothing trade because they produce men’s wear that is saleable at a price more in harmony with the reduced purchasing power of the people. It is so also in America. ' DAIRY PRODUCE. The butter trade rcmain s exceedingly quiet, but importers are not -despondent, although their optimistic hopes of a fortnight ago were not realised. Buyers have abstained from operating in the hope of forcing prices down, bub there is undoubtedly a shortage of supplies, and before long the demand must arise again. To quote the report of one of the dairy inspectors. “We -do not think this state of trade can last long, and we look forward to a much brighter market at the lower prices.”