FINANCE & COMMERCE

Waimate Daily Advertiser, Volume XXIII, 5 February 1923, Page 7

FINANCE & COMMERCE

HOME MARKETS. (Pei Press Association—Copyright). LONDON, Feb: 3. The Stock Markets nave failed to maintain the strong position of a fortnight ago. Accumulated influences of- the Ruhr occupation, Lausanne wranglings, and the A-meriean Debt position / the crashing of the-Continental exchanges, and other things brought about a much* more subdued frame of mind among operators, with the result ' that the volume of business fell away greatly early in the week, over gilt-edgeds losing some of their buoyancy. The position improved distinctly on Thursday, when the American debt 'decis.on was announced. More hopeful news came from Lausanne, and the week wound up in far better style than ic opened. ♦ The Trade Position. Interesting comments were made on the trade position by the chairman ol meetings of two big banks—Mr Walter Leaf (Westminster Bank), said it was clearly impossible to hope for any great revival of trade from any of the old customers in Central Europe, whose recovery was entirely bound up with the, Germans. He added: “We must draw what little consolation we can, from the fact that so important an industrial rival as Germany- had virtually withdrawn from competition, except in certain classes of goods in which she practically held a monopoly —notably dyestuffs. But despite adverse conditions, there are definite sighs of a strong revival, which already are doing something to diminish unemployment here, and seem likely, before long, to do much more.” Another View. Sir Harry Goschen (National Provincial Bank), said that Britain expectea more rapid recuperation of the world’s trade than has proved possible, but there was no reason for despair. Certainly some progress had been made. Britain had secured a lead in exports of iron and steel, which, 12 years ago, 'Germany had acquired from her, and five years ago, the United States headed the list. For the first eight months of 1922 Britain’s exports were 2,060,000 tons, compared with the United States 1,413,000 tons. Increased orders were placed in Britain. In view of the great world-wide neeu’ for steel and iron for railways, and other there were grounds for hoping for increased prosperity in that branch of the trade. Merinos Fall Back. A setoack in merino wools, at the London sales, was attributable mainly to the extraordinary conditions on the Continent, and particularly the depreciation of currencies, which had reduced Contindhtal competition to a minimum. French and Belgian buyers could only operate at prices which would allow for depreciation in value. French and Belgian demands were also affected by the continuance of the strike at Vervirs. There was,some competition from Germany, but much less than at the previous • sales. American and the Home trade are the principal purchasers, and catalogues are generally being well cleared. Reports of strong markets in Australia are tending to counteract the effect of the decline in the Continental demand. About Butter, Supp Hes of Australian and New Zealand butter have just arrived, or are due by February 7 in an amount of 445,000 boxes. This may be rather more than the market is capable of absorbing immediately. It is therefore possible that prices may case slightly, but future Australian and New Zealand supplies are light, and hot, dry weather in the Argentine is seriously . affecting the output, so that butter is bound to be. scarce later on.. The future position looks very strong. Cheese stocks are very light, but high retail prices are checking the consumption, and sis a good quantity of New-Zealand is coming along, reduction in home prices appears likely.—A’, and N.Z. Cable.