CHEAPER WATCHES

Hawke's Bay Herald-Tribune, Issue 22, 10 February 1937, Page 4

CHEAPER WATCHES

Lowering Exchange Enables Resumption o i Trade SWISS MANUFACTURES With the lowering o£ the exchange rats consequent on Switzerland's following the lead of the majority of the nations by going off the gold standard, there has been a resumption of trade in two partieular lines of business — watch-cnaking and electrical equipment — between New Zealand and Switzorland. Inquiries made by a Herald-Tribune representative yesterday in Hastings revealed that during the past month or so quite a number of business concerna have forwarded substahtial orders for goods from Switzerland and the receipt of these indent orders is expected to result in very big reductions in the price of certain goods and articles. "For a number- of years now it has not been worth our while ordering watches from Switzerland," said a leading jeweller. "The depreeiated value of the pound in Switzerland has made it almost impossible to do any buying/ The Swiss manufacturers were very hard hit, and I believe the Government subsidised them to the extent of some £12,000,000 or more." During recent years, he said, there had been a bigger trade done in German, Japanese and the very cheapest lines of Swiss cnakes. The more expensive lines of Swiss watches and docks were far too expensive to buy except in very small lots or speeial orders. In some instances the cost was more than doubled. "However, with Switzerland' now off the gold standard, a very big reduction in price can be expected>" he said. "I am anticipating that there will be at least a 35 to 40 per cent. reduction." Our informant said that his own partieular indent order was one of tbe biggest he had sent away for a number of years, and he knew that several other'men in his partieular line of busb ness had sent away big orders. "Our stocks of Swiss watches and docks have been reduced very heavily during the past few years, and it has bebocne imperative that they should be xeplenished/" he said. Inquiries made in the electricalequipment business revealed that here too the effect of the exchange reduction has been noted. "I have been called upon by three wpresentatives of Swiss manufacturers during the past month," said one retailer. "It was quite pleasing to see them again, for I have a good opinion of Swiss goods. All three told me that they had received a great reception tfiroughout New Zealand and that their orders" had far exceeded their anticipations. In fact, two of them told me that it would probably be the best part of a year before they could fill my order completely." At one time, said our informant, Switzerland had built up quite a big businpss with New Zealand in electrical equipment and other machinery, but owing to the depression and the high rate of exchange the trade had fallen very considerably.