TRADE REVIEW.

Star (Christchurch), Issue 17183, 29 October 1923, Page 7

TRADE REVIEW.

—: i—4BRITAIN’S BUSINESS LIFE. IMPROVEMENT IN TRADE. THE DOLLAR EXCHANGE. B Australian 11 and^N.Cable °AfSociatien. (Received October 29, 8.5 a.rh.) LONDON, October 27. The news of the so-called revolution m Germany, and leports of the inflation of the currency with the resulting fall in the American exchange, and rumours of the possibility of an advance in the bank rate as a. defenuneasiness on the Stock Exchange, early in the week. However, tli*. Premier's announcement, following Mr M’Kenna's speech, which was regarded as representing the views of the leading bankers, had a. reassuring effect, and the markets closed with decidedly brighter feelings. The best proof of the inherent strength of the Stock Exchange is to be found in the. fact that ever £30.(MX).000 of new capital ha 3 been floated this month. TRADE IMPROVEMENT. The slight improvement in Britain’s trade reported a fortnight ago continues. and according to the “.Economist” it seems that- business circles here ‘completely discount the worst that can happen in Europe, except, of course, a serious outbreak of war. It is true that unemployment figures have shown a small increase since the end of September, but this ir crease is really less than what is normally to be expected at this time of the year as the result of the autumnal shrinkage of employment, in the building trade. Proof of better trado may be deduced from the fact that the prices of industrial securities on.the Stock Exchange are appreciably firmer than three months ago, and the ‘‘Economist” shows that the net pro fits of over 200 industrial companies, whose reports were issued in July. August and September, amounted to 17.3 millions, compared with £10,500,000 in the corresponding reports published a year ago. The evidence of these statistics is confirmed by reports relating to various industries and markets. THE DOLLAR EXCHANGE. The collapse of the dollar exchange early in the week was dpe partly to seasonal causes, but undoubtedly the chief reason was the talk of inflation by the Government in connection with the unemployment relief scheme. This caused many business bouses here and on the Continent hurriedly to cover their requirements in dollars for the customary autumn payments to The 1 nited States, under the impression that there/ would be a further adverse movement in exchange if the inflation rumours proved well founded. Air Baldwin's speech removed this apprehension. BOOM JN LEAD. A feature of the metal markets has been the spectacular advance in lead, which is now quoted at £3O ss. A week ago the turnover for the week amounted to 4000 tons. According to a. leading firm of metal brokers this was clue to the cable industry's re ouircmenbs for prompt lead. There does not seem to be any likelihood of m pronounced reaction in prices till this demand is satisfied. The high level now reached is hound to encourage shipments, and the wide backwardation is a .sign of an artificial position which can hardly he described as otherwise than, dangerous. The market has become rather out of band. HOMEWARD CHAR TER TNG. The freight market is steady so far ns homeward chartering for foodstuffs if. concerned, with some activity in £he American grain market. So far no chartering of any importance has been dene for next season’s Australian wheat shipments to the Lnited Kingdom. though January fixtures to Japan are reported at 27s 6d per ton. From 37s del to 40s is mentioned as the shippers’ ideas for charters to the 1 nited Kingdom, but at present the owners of tramp tonnage will not look at this figure. FROZEN RABBITS. The Australian frozen rabbit trade so far this season has been most disappointing. The prices prevailing here leavo littlO’Hf any profit to the importers. Sydney blues are now quoted at 27s per case ex ship, and reds at 235, and even -at these prices few are going into consumption. The chief cause of this unsatisfactory state of affairs is the heavy complies of Eng., lish. which not only have come on ib® market a month earlier than usual but are said to be more plentiful than in any period for a quarter of a century. Anothey cause of the pooledemand is the cheapness of meat. Consumers of frozen rabbits mostly belong to the poorest classes, who find that frozen beef at sixpence a pound (and much of it is now being retailed at this figure) is more economical than rabbits at the same price. Fresh killed English rabbits are selling in the markets at sixpence to cightpence a pound. and Qstend Tame rabbits, specially reared on the Belgian sand dunes, are obtainable at ten pence.