Page 3 Advertisements Column 1

Hokitika Guardian, 11 October 1927, Page 3

ECONOMIC MOVEMENTS. In its monthly review of business conditions in New Zealand, the Auckland Chamber of Commerce journal, which illustrates an excellent article by informative graphs, draws the following conclusions: — The 1926 slump was accentuated by, among other factors, hostility in B. ita in towards New Zealand butter, due to the Dairy Control Board’s policy, and by reduced power amongst the people there, duo to the disastrous strike. The present tendency towards recovery is hastened by the removal of these difficulties, assisted by the reduced bank rate and improved conditions generally in Britain. Indeed, New Zealand export prices have already risen to a point such that they show much the same percentage increase over pre-war levels as do tho prices of imported commodities. ; lßrfhe past is any guide to tho future we may expect export prices to rise a good deal- higher yet, bringing better business conditions to the Dominion. There is, however, some reason for supposing that this improvement will not last indefinitely, but that for many years to come tho general tendency of "world prices will be downward, with but an occasional temporary upward movement. It is perhaps this general downward long-period trend of prices (with the cyclical swing between boom and depression merely super-im-posed upon it) that is very largely responsible for the recent slumps having been reflected In exceptionally heavy unemployment rates.

Arrived—/ 'Auckland. SYDNEY, Oct, 11. i 5.45, TTlimnrpn ffpji)