LOWER PRICES

Hokitika Guardian, 4 February 1921, Page 1

LOWER PRICES

A GENERAL DECLINE. WE LUNG TON, Fob. 1. Reporting to the Prinu* Minister, the Prosidwiit- of the Board of Tun tie says that a movement to lower the price level has definitely set in, and is heitie closely watched by the Board of Trade, to ensure that the public receives the benefit of the changing conditions. Many items usually sold by grocers, such its tea, rice, potatoes, and bacon, have been substantially reduced, and this downward ptico movement appears to be spreading. “There seems no doubt,” remarks the report, “that prices generally are tending to fall, as, for instance, see the cables with regard to butter and wheat. All classes of the community recognise the impossibility of maintaining the high level price which has prevailed during the past year. A change was inevitable, and would finally have been brought about by the failure of the demand, as the purchasing power of oUr customers is becoming more limited. I am aware, however, that the change has been initiated by the stringency in finance. There are heavy stocks of clothing in the country, and the public are probably getting the benefit by the fact that the New Year has opened with a series of sales throughout the Dominion. Ready-made clothing can now be purchased at prices which are from 30 per cent to 50 per cent lower than those ruling twelve months ago. The demand for this class of clothing has enormously increased ill recent years.” Prices of footwear, the report continues, declined substantially a few months ago, and heavy stocks of both imported and locally-made goods arc now on offer at lower figures. Importations of this line have been particularly heavy. The certainty of a decrease in the cost of raw materials, and the fact that the general public are not buying extensively, have had the eifect of curtailing the amount of work being put through by local boot manufacturers. Th,c lower cost of materials, especially leather, lias resulted in a general average decline of 20 per cent in prices. Meat prices, generally, have, up to.the present, shown little vatiarion, though there Ims been a considerable decline in prices of fat stock at the cattle markets.

The Board of Trade, through its price investigation tribunals, is still performing most most useful service, and is promptly dealing with all complaints that are submitted by the public. As the result of eases already decided, there has been a notable diminution in lhe number of complaints brought before the tribunals. It is quite certain that the financial' difficulties in Great Britain and in the United States, with the heavy drop in freights which has taken place, and which still continues*, must result In lower prices for manufactured goods which are imported to this country from overseas.