BRITISH TRADE REVIEW

Wanganui Chronicle, Volume LXXXII, Issue 19439, 27 October 1925, Page 8

BRITISH TRADE REVIEW

THE LOCARNO PACT PUBLIC CONFIDENCE STRENGTHENED PESSIMISM DEPRECATED LONDON, Oct. 24. There has been a general expansion of business on the Stock Exchange, for though the boom in rubber has subsided, business in many departments is active. The happy issue of tho Locarno negotiations has served to strengthen public confidence in the general outlook and improved reports on the condition of several staple industries have caused a demand for commercial and industrial securities. Rumours of impending heavy withdrawals of gold for New York and tho consequent possibility of an advance in the bank rate caused some disturbance in gilt edgo securities, but tho market recovered when it was learnt that the exports were under £20,000,000, which was about one-third of tho amount anticipated, and New York exchange reacted favourably. The impression is now growing that a higher bank rate may bo unnecessary this year. Reply to Pessimism Mr Hunter’s pessimistic remarks about the country’s trade are dealt with in Westminster Bank Review, which says: “The picture as a whole is painted much too blackly. If Mr Hgater had been equally familiar with tho conditions in districts like Coventry as he is with North-East England, his outlook would certainly have

been modified.” Tho Review points out that the latest annual analysis of nearly 1500 British limited companies shows that on tho average profits increased during last year, and recent calculations place tho volume of British production during 1924 as 85 per cent, of that in 1925 compared with 80 per cent, in 1921 to 95 per cent, in 1923. Tho review proceeds to make a suggestion that Britain way have to attack tho problem of foreign competition in trade by making a fresh advance in tho direction of industrial specialisation; that is, wo may have to devote our energies less to the cruder industries which foreign countries can carry on successfully locally with their own resources, and more to the finished processes in which our position is unchallenged. The writer adds: “The process of transition may be painful in | some respects, but we shall be advamring a stage further along the path to economic evolution.”

Butter Market Dull. Dullness reigns in the butter market and business is almost negligible but it is unlikely that this condition of affairs will continue for long. Holders at any rate show no alarm and are not pressing sales for with the strike still holding up shipments from Australia and New Zealand supplies on the spot are getting small and the general opinion is that soon there will not be enough of the best butter for consumptive requirements. Much of course depends on whether the consumers will continue to pay the present high retail prices or turn to margarine, the makers of which are assiduously advertising their best brands as substitutes for dear butter. Metal Market. An outstanding feature of the metal market is the firmness of tin. According to one of the leading brokers, conditions making for higher prices seem to gather strength. The high premiums commanded by Straits and Baku tin in the East have induced consumers to turn attention to England refined, causing large withdrawals from English warehouses and a dimunition of the already limited quantity on warrant. Considering the daily volume of transactions on London, the available stock of standard tin is inadequate to the needs of tho market and the contango on forward tin has been replaced by backwardation. The Wine Trade. The competition of Australian wines continues to perturb tho wine growers of Burgundy and tho Dijon Chamber of Commerce proposes to take steps to counteract it. The chamber objects to the use of the words Burgundy and Chadlis in describing Australian wines, which it declares is harmful to the export trade in wines from Burgundy, and is requesting the Minister of Commerce and Foreign Affairs to approach j the British Government with a view to pending what the Chamber calls disloyal competition. •