An exceedingly welcome change has come over the tone of the piece goods market during the week. When we wrote last Saturday it almost seemed as if the bottom had fallen out of the market, and the gloomiest prognostica tions were current. Since then, however, important factors have been in' operation, and prices are once more on the up grade. It is, of course, not the first time that a change for the better has taken place to be followed subsequently by a relapse, but there seems a feeling that the views hitherto propounded in many quarters have been exaggerated in their _pessimis.n. When business started at the beginning of the week depression was still the feature, but within the next two days the alteration came. As usual yarn was the first commodity to experience the better position, and with business transacted at rates showing an un provement of from Tis. to Tls. 8 per bale, the tone of piece goods likewise rallied. Demand from Szechuan came into evidence, followed by increasing inquiries from Newchwang and 'tsingtao, and at the concluding auction of the week prices were showing a hopeful advance.
It seems likely that the very low prices ruling at the auctions attracted an increased number of orders from the interior, giving the impetus to improvement in prices. The suggestion of a rising market likewise brought speculators in, but apart from the latter there were undoubtedly many orders in the hands of dealers. All auction quantities were small and are likely to remain so for the present, thus introducing a steadying element into the market. Asa matter of fact, however, there is a belief that those in the interior who have been holding off in the hope of purchasing at bed-rock prices will now come in more freely with their orders, seeing as they do various signs of recovery. The better business done this week in yarn distinctly supports this view, for yarn is always a much more mercurial commodity than piece goods, the latter usually responding in a similar direction within a reasonable period of time.
Another factor which has been of assistance has been the better feeling in Japan. The money market there is easier, and as a consequence forced sales of stocks in China at ridiculously low prices are not quite so much in evidence. Asa matter of fact values of Japanese goods have shown an advance of from 2 to 3 mace, which should be regarded as a distinctly hopeful sign. At the same time American raw cotton is reported up, and this must have an effect on the sentiment of dealers.
As regards the Szechuan market which is now showing signs of activity, the dealers are reporting that the Yunnanese invaders have been thoroughly defeated. Even if
Text read from the printed page and cleaned; old type leaves the occasional error.