TRADE AND COMMERCE

Wanganui Chronicle, Volume LXXXII, Issue 19247, 26 February 1925, Page 8

TRADE AND COMMERCE

A WEEKLY LETTER FROM LONDON. (From a Special Correspondent.) LONDON, Jan. 9, 1925. The most interesting event of last wek has been the phenomenal rise of the pound sterling in New York. It has varied .from day to day but stood, on the whole, at a higher figure than it has done since it was “decontrolled’’ in 1919. On Wednesday it stood at 4.77 13 dollars as against the normal nit<> of 4.t< 2-3. America at present is suffering from the inflated prices, and incidentally, also from scandals. The divorce case of a congressman has shown up a great deal of corruption and east a strong light on the realities of American prohibition. Prices are, at present, being forced down a little bv professional traders in Wail Street. The business outlook there is very good and the, stool trade is particularly optimistic. Now is the moment for Britain lo attempt to stabilise the pound at par, and murmur has it that the British bankers' at present in America, are lending to float another loan to gel it there and maintain it there. The j total foreign loans placed in America last year was .1,210,000,000 dollars, of which 1,000.000.000 was “now money.’’ New York expects to lend quite 1700 millions to Europe in the course of 1925. The American population has increased since the war from 108 to 118 millions, an increase of 6 per cent. Consequently, the U.S.A, are coming to depend less and Jess on foreign markets to absorb their excess manufactures. “If the total exports of merchandise,” says a report of the Alexander Hamilton Institute, “should inI crease by .100 per cent in 20 years, this would only equal the amount by which our domestic purchasing power increases every five years.” The entire foreign trade of the U.S.A, is equal to only 7 per cent of the domestic purchasing power. The increase of population expected for the next six years will equal the total population of Canada. Although America does not need a great foreign trade, she is eager to get all that she can. American exports in 1924 amounted to 4500 millions of dollars as against 4000 in 1923, and 3800 in 1922. Wo have imported from them 1,360,000 bales of cotton since August. 1 last, Germany 916,000 bales and France 554,000. These figures suggest that wo may expect more employment in European textile factories in the near future. DIVERSION AND DUMPING. There have been recent protests from the other side of the Atlantic against an order forbidding the landing in Britain of potatoes from America, owing to the prevalence of the Colorado Beetle on the American crop. The Americans affirm that their crop has boon so largo that they must export. Candidly, we tire not impressed by their professions of the need to find an ouder fo» their surplus crop, to which our Afinisrrv appears to have given some heed. .That there is a big surplus cannot be. denied, but there are means in Ameiea of absorbing it. and putting it to industrial purposes and uses. Factories for making starch, potato flour, for dehydration and manufacturing dextrine glucose are not unknown in the United States. The high-grade potatoes do not usually go into these commercial channels. But the most significant fact in the whole business is that the potatoes intended for “dumping” on the English markets were those from the Maine, the shippers of which, “aware of the short crops in England, not only sent representatives to arrange sales.” Tint wore so impressed with lhe prospect that their plans “necessitated the abandonment on the part of the Alainc Potato Growers’ Exchange of all prospective shipments to Cuba.” It would appear. then, that it was not, a surplus which noded an outlet, but that supplies intended for Cuba wore to bo diverted to the better market. England. Our information from the United States, so far as it relates to the Maine exports, probaldy the only potatoes of a quality would appeal to the English palate, is that instead of lhe much-talked-of surplus, there is actually a shortage in the crop to lie sold. Or there was was until tho export plans were upset by tho embargo. A Boston mesasge on the subject, dated December 12, says, “The increased demand for export makes it very apparent that the Maine crop is insufficient to support the needs of both foreign and domestic trade.” Cuba, thanks to the intervention of our Miiistry of Agriculture, can have her potato demands met. and the Maine is also relieved of anxietv respecting the future. Let them keep’both their potatoes and their beetles. A NEW STEEL PROCESS Quite a stir has been caused recently in Swedish iron and steel circles by the announcement that a practical method ha.se been found of extracting malleable steel direct, from the ore. Experiments have been going on for some time at the Hagfors works of the Uddeholm Company, which are probably the largest in the world producing pig iron exclusively in electrical blast furnaces by a Swedish process. The new method however, is claimed to take matters a step further as it aims to take matters a steel eliminating the intermediate blash furance process altogether. In expert circles it is stated that, the facts published so far are not sufficient for the formation of a. definite opinion on the new process, but there can be no doubt that, if really good results are obtained at an economical cost, the invention will revolutionise certain departments of steel production, at all events in Sweden. A necessary condition is cheap electrical energy, and this is to be had in the country. The difficulties connected with separating sulphur in the ore appear to have been overcome very effectively, and here too, the pure ores of Sweden place that country in an advantageous position for the exploitation of the new process. Other doubts relating to incomplete contraction of the iron contained in the ore, lhe quality of steel produced, etc., appear to have been met >y the experts of the company. 'lhe latest information, however, from the, General Association of Sweden states that the national iron and steel industry continues to labour at a disadvantage. Certain steel products, as well as pig iron are, of course, still shipped abroad, but not nearly in large enough quantities to keep the industry employed. Only about 40 per cent, of the blast furnaces in the country are now in operation, while tho percentage of Bessemor furnaces operating is 61. and of open hearths 53.