PRICES AND EXCHANGE

Evening Post, Volume CXV, Issue 31, 7 February 1933, Page 6

PRICES AND EXCHANGE

(To the Editor.) .Sir,—ln view of the widespread discussion on the recent raising of the exchange rate and its effect upon the cost of liviug and with the hope that a brake may be placed on the vast numbers of loose statements being circulated everywhere, in particular in the addresses of public men and in the shops, I submit for publication through the medium of your valuable columns (1) the copy of a circular letter issued by a leading firm of grocers and general merchants in Invercargill. -to its customers, and (2) an extract from a personal letter from the manager of a ■wholesale firm in .the same town to me, both, received this morning:— • (1) "Traders generally are expressing some concern over the increase in exchange, and while fears are entertained at the likelihood of increases in prices, -ive are not inclined to think this trill amount to much. Several price reductions are shortly due and will go a long way to compensate for the increase. We wish to assure our customers that our prices will not be advanced while present stocks last. So far only three items have been affected, one of which is butter to the extent of Id per lb, which is small compared to the big fall of 3d per lb during •the last three months." . (2) ''What I wanted to mention at this stage is the wild talk about increases in cost of imported goods. While, of course, there must be increases to the extent of 15 pet cent, on the cd£. value of'many lines, the manufacturers in Britain-are evidently going to carry the burden on many. For example, , who manufacture cigarettes, have advanced the price 3d per thousand, or about one-quarter of 1 per cent. Then- others- (tobacco people) have definitely announced^ that they will carry the whole of the.^xchange; while certain food manufacturers are doing the same. A rumour has been circulated in several newspapers that substantial rises have taken place in sugar and flour, due to increased exchange. Now,-1 sugar has advanced 4d per. bag, and flour, not at all, as the most casual inquiry would have shown, but the public accept these statements asfcorrect. Anyway,.we still have the cheapest sugar in the world, and flour will be cheaper before it is dearer." —I am, etc., '■•'.- . J. HAEGEST.