After many weeks of what might be called nibbling at busifiess, jlrade with Manchester has shown itself distinctly larger in volume during the present week. Inquiries are now developing into orders, and purchases of Greys, Whites and some Fancies, including figured poplins, have been regis tered. The continuance of exchange at its recent level has undoubtedly encouraged this trade, and there is little doubt that any drop in the rate would be accompanied by renewed stagnation, for it is computed that at the highest not more than 25 or 30 per cent. of inquiries are to-day resulting in business. In connexion with these orders foreign merchants regard with satisfaction the cautious attitude of the banks in declining ¢ credits except in cases where the actual purchaser has a recognized standing. This tanda to confine the circle of dealers to its old limits, and should result in a return to a healthy and sound condition of trade.
In view of the political situation in the Hankow district with troops massing for possible battle, the auctions have not manifested the strength which has been a characteristic during recent weeks. At the same time the dealers do not take a pessimistic view of the position along the Yangtze, and are merely exercising caution. Naturally, Hankow has been out of the market. If, as is now anticipated in Chinese business circles the rumours of war fail to materialize further, renewed strength should in a week or two be given to the auctions by the re-entry of Hankow. The stocks in the districts depending upon that' centre are at low ebb, and whenever conditions permit, purchasing is bound to be brisk. So much is already anticipated by speculative buyers here. In Italians, for instance, they saw a good chance to lay in stocks at a comparatively low figure in the absence of any competitive demand. In about another fortnight the season will open. and they look to securing a good profit then..
With the exception of the Yangtze ports affected. by the movements of troops, the other consuming centres were fully engaged at the auctions, and the tone of business was quite good. Korea was a purchaser of black velvets, showing a fairly good demand. Some Japanese goods are again coming into the market, but not in quantifies likely to affect the general situation.
Corroy axp YARN.
Local Cotton Market—In the absence of practically any demand from the mills, the only people taking any interest in China cotton are the speculators operating on the local exchanges. Due to the settlement which has occurred this week lower figures are recorded. These, however, have not been brought about by the factors usually influencing prices, and it would be altogether er-roucous to conclude that the drop, in American and favourable reports from cotton growing centres in China have exercised any, effect. Operations on these exchanges are a thing apart from real business. The present atti-attitude of the mills is to ignore China cotton while it remains at these levels and continue importa. tions unti] a more sane state of mind is reached. The quotations current are:—
Text read from the printed page and cleaned; old type leaves the occasional error.