PRICES OF SOFT GOODS

Hokitika Guardian, 26 January 1921, Page 4

PRICES OF SOFT GOODS

REDUCTION REPORTED

BV TBI.UO II API! —PER PRESS ASSOCIATION] AUCKLAND, Jan. 24. Extensive reductions in the whole sale prices of many lines of soft goods are reported from Wellington, and it is expected that the effect of this dtop will be reflected in the retail prices before very long.. Enquiries made in Auckland show that a similar tendency lias been noticeable in the wholesale market. Recently some lines have been reduced as much ag 25 per cent, j while there have been reductions to lesser extents in other directions. Various reasons were assigned for this. The restrictions of credits and the tightness of the money market generally, it was stated, had caused numbers of wholesale sellers to cut their profits in order to realise upon stocks and to turn them over as rapidly as possible. It was contended that this had had a great deal more to do with the movement than the reported falling prices in the English markets, the clients of which had not had time to reach the Dominion. With regard to the prospect of this alteration reaching the public, the

manager of the Manchester department of a largo Auckland business stated that the prices which were being reduced by the wholesale houses "ere those ruling at the very peak of the market. Goods were coming forward very freely, and it was necessary for the retailer to turn his stock over often at cut prices, so as to clear to make room for fresh consignments. This naturally

affected stock lines first. The opinion was definitely given that the public could buy at present at lower prices than they would be able to do in six months. ' Mills wore closing down or working half time in Britain. When the stocks at present held were cleared, there, would ho an added keenness among buyers, anil this would naturally tend to raise the prices. One item quoted from Wellington was sowing cotton. A business man explained that there had been a reduction in the wholesale rates to correspond with a reduction by the manufacturers, which bad been expected

for some time before it actually occurred. In Auckland the wholesale price for some time bad been (is fid a dozen ; it was now 4s 7jjd. Summing up the position generally, another business man said the maiket might host he described as fluctuating, with a downward tendency. Before the lowered prices could be regarded as firmly established there must be a drastic reduction in the overhead costs of manufacture. His personal opinion was that the British manufacturer would have to he relieved of the excess profits tax and there would have to he a reduction in wages, or Hie money value of wages, as part of the general process of deflation, before the return of the market to normal could be accepted as genuine. Falling prices for raw materials could not produce this effect alone.