WELLINGTON NEWS

Hokitika Guardian, 11 January 1927, Page 4

WELLINGTON NEWS

BRITISH PROSPECTS AND OURS

(Special to “ Guardian.”) 'WELLINGTON, Jan. 6. Tho new year message from London hearing on trade and conunerce is rightly pitched in an optimistic key. but whilo this is fully justified there is a danger of extreme optimism obsouring tho true position. The year I!)d0 was undoubtedly a very bad one for Britain and the losses oecsisioncd bv the general strike and the coal strike have run into many millions, I and this loss together with the wastage of war must he made good. The reaction from the depression in its initial stages is bound to appear oppressive and to give a false view of the improvement. It is stated that the iron and steel trades and a. number of shipyards have more orders than they have Ind for some time past. The engineering trades, especially motors and electrical manufacturers, have also received a good number of orders and tho textile trades and tho boot .and shoe, pottery and chemical industries' are all becoming increasingly active. This of course is very excellent news, for it means that the number of unemployed will shrink perceptibly and consequently the spending power will expand. Increase in the spending power just now does not necessarily mean advances in commodity prices. Tho workers in Britain who arc this year getting the chance to work at their trades must spend their earnings with much prudence for they have much leeway to make up: still the spending must gradually increase and have a far reaching beneficial effect. Britain must endeavour to return to the pre-war level of costs of construction if she is to compete in the markets of tho world. Tho money market may possibly ease, but London is by no means 'anxious to see any raid by borrowers on the London Money Market. Cheap money will hold British industry. but what Britain must endeavour to do is to produce at such a reasonably low cost as will enable her to compete in all mhrkets. Tho outlook for medium and coarse crossbred wool, of which the bulk of tho New Zealand clip consists, is not very encouraging. It is not expected that prices will go any lower than at present; but there is no likelihood of any advance. The rdison for this appears to bo that the trend of fashion is towards goods made from merino and fine crossbreds, or what wo term half-breds, which causes the coarse descriptions of cross-bred wool to be neglected. At tho June time crossbred wool at current rates is very cheap which is certain to make it attractive to users on the Continent. Bradford has not hesitated t« buy crossbred wool, for mixed with cotton the cheapest of fabrics can be munufactured and these have an appeal to'the impoverished peoples of Europe. Ihe outlook for wool that is crossbred appears to he negligible, it is not likely to fall in prico nor yet to rise. Butter, cheese and meat fluctuate at all times, and it is difficult to say what will happen. Meat is certain to remain low, with an occasional upward movement, nutter will as usit.il show considerable fluctuations. Optimistic views in respect to butter are based on the probability of a shortage from Australia owing to drought. The drought, however, is a myth, and Australia will furnish considerable quantity this season, as much as was expected last year. The producers in New Zealand will bo well advised not to be carried away by any i.ilse optimism. The problem before them is the tost ot production, which must he reduced. Economy on tho farm and bctLer methods ol fanning will he lielplul, hut other sections of the community must also contribute towards the reduction in the costs of production. ’1 he false scale of Arbitration award uLges, and a tarilf that penalises the fanner must both bo reduced if the farming community is to have a chance. ‘‘Malle Primary Production Ray.” Unit is tho slogan to-dav.