WELLINGTON NEWS

Hokitika Guardian, 20 September 1928, Page 4

WELLINGTON NEWS

A SIGNIFICANT MESSAGE. (Special to •‘ Guardian.”) WELLINGTON, September 17. On Thursday last the newspapers published a British official wireless messago which read as follows: "Unemployment in Great Brithin continues to increase. On September 3rd tlio total number of workless was 1,324,700, lieing 4073 more than a week before and 250,000 moro than n year ago.” There lias been no comment respecting this message and yet it lias a great significance for us. Britain, takes from us on an average about 80 per cent of our exports at a price, during' recent years far above expectation. Do wo realise that tlio Old Country from the whole (if her imports purchases from the Dominion one-fifth of her butter, one-half of her eliccso, one-half of hei imit.ton and lamb, and one-quarter of her wool requirements, besides, honey, tallow, hides, skins, liemp, gum, fruit, 'etc.? .

There has been, as we all know, a world-wide depression in agriculture, and especially m Europe where ten million unemployed workers, greatly reduced in purchasing power, cannot; afford a normal supply of food. The depression has lieen due to the lack of balance between agriculture and industry. ' ~ ■■■. ■

Sir Francis D. Aclancl writes: “The fundamental problem which arises is the vital necessity for keeping equilibrium between the forces producing raw material and foodstuffs and those, engaged in manufacturing industries. Increased purchasing pbwer in eacli o'f tbeso groups means prosperity fn national and international trade in general, economic stability and a complete cessation of the violent price fluctuations which characterise present world .commerce.” Britain is a manufacturing country and her export trade is. essential. When British industries are freely employed. and there is just the normal number of unemployed she can take all our food products and pay. good prices. There were indications last spring that a revival had begun for British industries, hut a set-hack has since occurred, and the position to-day is worse than it was a few years ago tor tnerc are a quarter of a million unemployed. The purchasing power of Britain’s customers has declined, they are unable to buy as much as they need at current prices, and so British factories and workshops have had to reduce hands and thus lessening the purchasing power of the masses. This must 'tell on us, and already: there is not wanting evidence that prices will bo lower.”

With respect to wool there is strong evidence that the closing prices of last season will not ho realised. The representative off J. W. Swift and Co., .41 r E. J. P. Denny, who has just returned after a visit to the wool consuming centres of Europe and the United States indicated in an interview that tliero was bound to he a good demand for crossbred wools as stocks were light. But manufacturers declared that they could not pay the high prices ruling in New Zealand at the March sales, and hoped to secure their requirements at In per cent less. According to a, Bradford correspondent there has been barely average turn-over in wool or tops, hut what business has developed indicates prettClosely that the. tendency is on the easy side. There is. said to bo a little more steadiness about crossbred tops, especially medium and coarse grades, owing to the growing demand for cloth ; rind clothis at a reasonable figure. T ‘ j is quite clear that wool prices in the ! new senson will not ho an high as in I the past season, but there will ho some ; compensation in the fiictlthat tires pro- ; ductibii of wool will show a fair'

increase. Tlie prices 'of butter and cheese in the London market arc high and are likely to remains so a little longer because there is now a gap between supplies from Hie Northern and Southern Hemispheres. Supplies from the former are •diminishing while supplies from the latter cannot roach tlie_ market in any volume for some time.

Supplies from both New Zealand and Australia are likely to be larger this season than last, and with the restricted purchasing power supplies nifty he in excess of demand in' which cases prices must drop. .Messrs \Y. Weddel and Co. advise their representatives that there Is on the market a. consiuer-

aliic quantity .of stored butters and 1 these do not meet with favour and arc difficult to sell except at,reduced prices. A moderate drop in prices seems inevitable .hut producers v/ill have as good a. season as the last for what is lost in. price is made good by the increased quantity.