PRICE OF FOOTWEAR

Hokitika Guardian, 16 June 1920, Page 1

PRICE OF FOOTWEAR

NO: PROSPECT OF FALL. MANY FACTORS TO BE CONSIDERED. •OPINION OF MANUFACTURERS. “In view of the recent fall in the prices of hides, it is natural that the public should expect a corresponding decrease in the price of footwear, but they arc doomed to disappointment, ’ said Air C. J. Ward when discussing this most important matter with a “New Zealand Times” representative. “The great diffioulty in the realisation of this expectation is the distance we are from the markets from which we got the greatest proportion or the materials used in tho manufacture of modern footwear. Alanufacturers in the Dominion have to purchase their supplies further ahead than any other country in the world, and not one of them’ would think of providing himself with a smaller stock-than would enable him to see at least eight or nine months ahead. Whilst it is not safe to say that none of these goods have been at peak, prices, considerable quantities have been bought at very high rates. Then again leather is by no means abundant. These conditions mean that prices will be maintained much longer than the average citizen is prone to believe.

GLUTTED WITH ORDERS,

“If it is a moral iniquity to work on replacement values, the trader must protect himself by a system of averaging values. This also retards tho immediate effect of falling prices. In addition to the factor of a comparative shortage of finished leather, hoot manufacturers both in Australia and New Zealand have more orders on hand than they care to contemplate. To sum it mi in the words of one of the largest manufacturers in the Commonwealth. ‘Sellers of goods for manufacture into boots are welcome; buyers of. bools are anathema.’ in considering the present fall in hides many factors /lave to be taken into consideration. Australian prices are largely the reflection of drought conditions; Netv Zealand rates are affected —as in the years before ‘price regulation’—by the condition of winter hides. In addition to this,'American-buyers are not operating either in Australia or here. Those in the Commonwealth who are competent to judge appear to be certain that there will be a very 'considerable recovery in September next. If the expectation should bo realised then before tho manufacturers are clear of orders at present in hand, and before tlie tanners have sold the leather purchased uiu leather purchased at recent iiign prices, the conditions of a rising market win again become operative, inere is no question that owing to the presents turmoil of prices and the unexpectedly sudden movement of tho market ttiat the wisest men in botli the leatlier and boot trades are unable to rorecast the future.

Di'.ARER STANDARDISED BOOTS. Air. Hard went on to say that as a result of an investigation by its accountants, the Board of Trade bus granted authority ior an increase in toe .soiling prices oi stamtaraiseu boots by 3i per cent, ill arriving at this conclusion, the selling margin of the retailer was reduced by 8 1-3 per cent., so that the amount allowed tor distribution is approximately the same as in the earlier issues of standardised boots. Goods at the new vulues will be placed on the market shortly. Should leather fall, these prices would be subject to immediate revision by the Board of Trade. The public is amply safeguarded by the fact that the authorised prices are indelibly stamped on the bottoms of the boots. ENGLISH RATES PROHIBITIVE.

Referring to imported footwear, Air Ward said that recently arrived samples of English manufacture were so high in price as to practically prohibit buying for local market. The position at the moment was that’ the Dominion was practically dependent on local and Australian manufacturers'. The Commonwealth had taken the place of those countries from which we formerly imported. Even so, it was quite possible, nay, probable, that we would not have a great deal of footwear from that country in the near future. This because the heavy protection duties recently imposed in Australia on raw materials must have its effect in fixing the selling price, which would place tlie imported article at a disvantage. ‘/Undoubtedly, there will be a, fail in prices in the future,” said Air Ward in conclusion, “but taking into consideration all the factors mentioned it is extremely unlikely that that will be soon or material. It is to be sincerely

hoped that the recent high prices of hides will never again, be reached, but the increasing dost of labour which must lie expressed in the price of tlie article manufactured, is a very material factor in present prices.”