THE WAS AND PRICES

Dominion, Volume 12, Issue 70, 17 December 1918, Page 7

THE WAS AND PRICES

MERCHANTS INTERVIEWED

HARD TIMES IN HARDWARE

■ 'It is chiefly n matter of converting tho munitions plants back to mannf'acturiiij* plants and the matter of shipping facilities • that are going to be' the potent influences in bringing down the, price of hardware to something like normal," said a wellknown furnishing ironmonger and hardware merchant to- a -Dominion reporter yesterday. "It is too early to say what lias been done since the armistice was signed,' but as the continuation of war is so highly improbable the factories are probably being transformed now to turn the sword into a ploughshare. Though modern machinery appliances may have taught the manufacturers a great deal tlint will mean increased efficiency, the public out here can rest assured'that they are never going to set things as cheap as they have in the past. • Prices will go.down, of-course, but they will never be' (is. low as they -wore bet'ore . the, war. Japan has cut in a./goo'd deal during tho last two years, > but she has lost her chance, nnd it was a great one. Japanese Inanufacturers preferred to turn' out What was cheap and nasty, and charge tho earth for it when .we-'could .not get tho goods elsewhere, but in the- future America and England will get the trade. "As tOitbe price prospects. It might interest, you to , know that some English manufacturers have already increased their discounts,' and with the reduction of freight rates and the elimination "of . the war risk rate there should -be a drop in prices within the next four months. Half a 1 dozen big ships can bring out a tremendous amount of hardware. Prices can afford to recede.: As compared with •prices in June, 1914, that for white lead has-increased 350 per cent., roofing iron from 400 to 500 per'cent., brass foundry goods from 100 to 200 per cent., aluminium ware and pots and pans the same. Some of tho, articles in household hardware bulk large, and consequently the freight is pretty heavy, so that any reduction in j that direction , is important. '■ "Some lines wb, havo practically not been able to buy at nil this .year, viz. (> pocket cutlery, wire-netting and fencing' wife, whilst-razors 'aiid all sorts of tools wero not easily bought. I am told that 'already the price of corrugated iron is easier, and angle iron: and fencing wire havo receded by Al per ton. -There are likely , to be efurtlier drops registered soon, as those who hold stocks, at a high price must) sell qiiickly or be -left. It is not wise to get left with high-bought goods oil a falling market. ,-

• "My opinion is -that'-.there- wjll be a big rush of stuff on to the market within a few months, and that juries .will fajl_ pretty low, then as . prices stendy : wir'n fiie satisfying of the demand there will be firmer„priccs, which will, be ti little highert -than those ruling before the'war. Pig-iron is! still a-rarity in New Zealand,-but u-ith the' resumption of the world's shipping 1 itt is anticipated that it will -not be difficult- to. obtain supplies nextt year, though .the demnjid in Europe will bo such as to prevent .prices being as low', as they were beforo ■the war." ' . ..■■■•• • •

. One" ironmonger urged .that the present Was the time to. encourage local industries. In Australia they were* now making porcelain .enamel: baths,cve.ry.bit as flood as- those formerly imported from Home,- and which - .could b'e landed in New Zealand 25 per . cent, chcaper. Unfortunately the demand was-so great at present for tho Australian article .that local orders could -not be, supplied: It had also-been proved that the glue made in New- Zealand was equal to. the imported article. The present was the time to. build up the nation .as one with an industrial-.-.future,--But it was with : regret that .lie _ saw i that the Government was not paying any' attention - to .that phase of national aggrandisement. . .- •,

Dearer Silverware, A leading importer arid retailer of jewellery and silverware (plated and solid) who was consulted respecting the prospects oi price "fluctuation in the immediate future .said .that jewellery and silverware was now very, high-priced, and he could not. see that it would ever ; be reduced very much, certainly not-to pl'eivai" prices. "We will all have to get ■used to thc-fact-thatthirtforking people of England have never .had so- much money-in*their "history as 'they have during | tlie' war, and they are going to' live a little better than they have doiie in the past. That will mean higher wages, and incidentally higher prices ; for' everything. Take bar-silver.. Before the ■ war we used to be able to buy.it at 2s.- Id. per ounce;, iiow it is. 4s. 2d,-per ounoo,and manufactured silver which formerly cost us is. fid. per ounco' now "costs us 10s. per ounce in England, and on ;top ol that come' the increased freight and insurance. The .latter charges will recedo 111 time, but it will take' some, time for the value of silver to readjust itself. The big rise in silver I attribute to' the hoarding and locking up' of so much of the worlds gold; Possibly with the libera-' 11 of- the supply of minted gold ■ after peace is signed silver win go down in price,-but-it is scarcely-likely to go as low as the 1913-M figure. Look' at the thousands of hauds who have been working on munition plants or fighting during the war. Among these were the' skilled hands in the silver trade, and whose work will be done :less 'skilfully and at a greater cost in the future than even in .the past. , Tho Sheffield houses have been very badly hit by, the'-war,- and

it will take some little time yet to build up stuffs unci stocks." Girmnn Silverplate. Those who remember the Auckland Exhibition cannot fail to remember the renlly magnificent displny of silverplate from AVurteinberg, in Germany. It was one of the big artistic features of the exposition, and held ninny people fascinated for hours. Our' informant states that at that time a determined attempt was being mado to capture the New Zealand trade, and such was (ho workmanship and quality that it would have not well into New* Zealand had not war ' nipped the attempt, in the .bud. Now" we arc <> never going to buy any German silverware, beautiful lis it may bo. It will be British, French, and American silverware which w:ll compete'for favour on the New Zealand market. -Atactica,- T 'believe, is goin<: to be the most formidable rival of Sheffield, liecanse we are not going to bay any silverware'from Germany or other countries where tho workers afe sweated so awfully, -silverware of all kinds is going In b™ denm- in the future than it 'ever has been in I lie past. You can take , that for gospel!"

'* Prices of Provisions. The following'substantially embodies the comment and opinion of leading wholesale ■merchants who Were interviewed upon the prices of provisions and their probable tendency:— , Under war conditions,- it has been nece-isiu'v for manufa'durers, wholesalers, and retailers to protect themselves against sliOi'iaiTc of supplier etc.. by In,vine 111 nt one time larger stocks than they were formerly accustomed to. Thus manufacturers generally are likely to lmve on hand' stocks, for perhaps, another year, wholesalers for another six to nine months, and retailers (general grocers, for •instance) for about three months, these stock? hnvo been purchased at war rates, and until they have been retailed to the consumer the mice mi' c f. remain at least at its present high level. A member of .-a bis importing finn, by way. of illustrating the above point, observed that his firm now had. contracts made for nine months ahead, and the I shipments would not start until January. , Those contracts were.made at nn advance of 150 per cent.- on pre-war rates; mid while, it was possible that overstocking in some lines might lead .merchants to. cut the price even .below cost, such action would necessarily be the exception to Hie general rule. Merchants state that not only must the present stocks be cleared before a reduction, in price is to lie expected, but a reduction in the prime cost of articles must also take place.- Instead of decreasing, ..-however, - the prime cost appears to be increasing, partly because of the higher cost of .labour due to, war conditions.' A.Wellington .merchant'yesterday received from the manufacturers of'a leading line -of tinned goods in Britain! a quotation the effect of which would.be to put.a.cost of Is. fid., upon the landing in New Zcalnd, of what was formerly retailed'ot 6(1.; and goods that cost the wholesale merchant Is. Gd. to land would -probably cost tho consumer Is. 9tl. .The quotation for tho goods in question was probably the lowest the' manufacturers couid make under the "present conditions, as tho manufacturers were undoubtedly. anxious to get bock-the business they-had lost. It is considered that even if the freight market comes.down slightly now, the prime cost of goods will continue so high that the consumer will not reap the benefit that lie.otherwise might.' Asked to statu what ;he thought of the prospects generally, one gentleman snid he did not at presont expect lowe?: quotations in food lines, nt any rate. The demobilisation of the armies in the .great, manufacturing .countries, might mean a fall, in the value of labour, and a. .consequent cheapening in the prune cost of manufactured, articles; but.that .fall jn the., value of labo'lir, if. it. took place.' might,- lend to irnkstrjal troubles which 'would again dvivo up prices for tlic consumer. .