WELLINGTON NEWS

Hokitika Guardian, 5 August 1927, Page 4

WELLINGTON NEWS

XIAY ZEALAND IN THE DOLDRUMS

(.Special to Guardian.

WELLINGTON, Aug. 3. To see ourselves as others see us is not always pleasant, hut in a publication known as •• Easiness Conditions.*’ issued monthly by the Alexander Hamilton Institute of Australia, a rather optimistic view i- taken of a (fairs in New Zealand, nunv optimistic than many business men have recently displayed. Under the caption "New Zealand in the Doldrums,” it is staled that New Zealand business for the past eighteen months or more has not been what it should, and in accordance with the usual psychological tendencies at such times, the enforced (juiciness in trade has been magnified by a tew into a disaster comparable tuny with the 102H-2I episode. It is undoubtedly true that the prices of certain export products of particular interest to New Zealand have not been so satisfactory as was ex pec toil, hut on the other hand, the export prices of certain other commodities though ol a lower range than a year or two ago. yet have given a distinctly better average return. Take wool for example: The average price per hale for the past season turned out to he a record, notwithstanding that the range of prices was considerably loss than in the last few years. New Zealand is a wool producing country on an extensive scale. Accordingly she benefits.

Again, although tin* value of exports have fallen for some months, yet making allowance for the difference in money values, they are apparently higher than in 1921. Even at its worst period, the hanking position in 1020 was never in .such a state as it was in 1021. Although deposits may have shrunk compared with a year ago, wholesale prices have also shrunk by l> per cent which, offsets to .some extent the decreased purchasing power. The cost of living Ims also fallen by a similar amount. further, the addition to the cash reserves of hanks has been more than sufficient to offset any inerea.se in advance-, which may have been necessary. High yields from the threshing of wheat and oats have been maintained, and although the prices may be relatively low yet a plentiful supply of wheat at low prices is a great deal better limn a short supply at •- 1111 :t11 y low prices, which, in certain circumstances may very well be the

c-ase. A similar reasoning applies to the butter industry. The increase for the gradings for the Auckland Province alone during the past season was approximately 20 per cent more than last year. Despite the pessimistic propaganda. it is to he doubted whether the average price of butter for the season is 20 per cent less than last year. If not the aggregate returns from this source will he equal to those of a year ago. There still appears to he plenty of money for the purchase of motor ears, for New Zealand is third in the world list of Users. Presumably buyers are paying for these ears. 'Hie recent fall in business was by no means violent and taking all the factors into consideration, was not in the remotest degree so severe as that in 1920-21. The most favourable .symptom of all Is the absence of any sign of that hectic make-believe which is the bane of true

prosperity. SEPARATE WOOL EOTESRS. The Otago Partners' Union has broadcasted an appeal for separate rosters for the two islands in respect of wool sales, si ml gives a long list of reasons in support, most of which lack force and fail to carry conviction. To have two separate rosters wiil mean the clashing of sale dates, hut that perhaps would not he of much consequence, for two rosier:-, would necessarily mean two sets of buyers. Under present: conditions all the buyers are conteni rated at the one sale, and this ensures competition. ft is true that North Island wool runs from 39’s to 13’s and South Island wool from •|H’s upwards, hut the buyers who come here operate on behalf of several principals and their commissions cover every class of wool. !hi- is seen at the North Island sales when the liner wools tire readily cleared •li prices on a parity with those ruling in the south. There are far too many selling centres in New Zealand now, bill no alteration can ho made in this, however it. would he unwise to add fresh centres. After all the woolgrowers are free to make any proposals and suggestions as to marketing, hut the ultimate decision rests with the buyers. The dairy farmers are generally believed to have paid about 92.090.090 to discover this fail.