THIS UNCERTAINTY

Evening Post, Volume CXV, Issue 15, 19 January 1933, Page 12

THIS UNCERTAINTY

HINDERING BUSINESS

SUSPENDED ACTIVITY;

"Evening Post," 19th January.

Recrudescence of the exchange controL versy has again had a prejudicial effect • on business generally. On every side in .' mercantile circles there are complaints of ■ the hindering of business by the prevail- ',- ing uncertainty over this question of ex- ■ change. There is no doubt, either, that wher^ * ever it is found practicable -to do so, funds '.- are being sent out o£ New Zealand while '. the current 10 per cent, rate remains . where it is, lest it should be forced higher •: and the value of the funds still in hand be depreciated by inflation. Capital which ~ the country can ill-afford to lose is being •; exported. ' '.. The air is full of rumours and the effect ■on business, difficult as it is in itself, is " most regrettable. Construction works '■ that might have been gone on with, seeing that interest rates are lower than for the past few years, are reported as held in ; abeyance nntil.it is known what- imported material —structural steel, for-instance -! " —is likely to cost. Tenders cannot be eon*'.sidered by those who would invite them vand those who would submit them, until ; this grave uncertainty in respect to ex- ,> change is settled, one way or the other. . This hesitancy so noticeable in the build- .■-' ing trade, is, of course, prejudicial to the '{; employment of skilled tradesmen and labourers who are only too anxious, to drop , relief work and get to work they know •-■ how to do. But the importer, and that term now includes many retail firms in a large way, - does not know how he stands.' He 'naturally pauses before making any coinmit■.ments, not knowing what gbods are like- :; ly to cost until they arrive. The duties 'and other charges he knows, the present rate of exchange he knows, and makes' '■'■ due allowance for, but he appears to feel manacled and fettered by the natural timidity of his customers in considering ; future replenishments or taking up new lines of goods ignorant of future landed ..'costs. He also fully realises the difficulty 'at the moment- of doing any business at -all with a public compelled by force of ■''," circumstances to consider, as never before, .how to get the best value for the least -money. This uncertaintyin wholesale and . retail business has its reflex action on em- . ployment in shops and offices, for the imperative need of keeping overhead expenses down to the minimum is fully recognised. Labour in shop or office is an important item in overhead. V Humours and speculations, no doubt .many of them wide of the truth, to-day -are having an almost paralysing effect on business in New Zealand. The feeling of hope that welcomed in the New Year is giving place to an attitude of "What's the .;. use?"