AMERICAN TARIFF PROPOSALS

Hokitika Guardian, 23 October 1929, Page 7

AMERICAN TARIFF PROPOSALS

EFFECT ON HIDES MARKET. SUBSTANTIAL FALL RECORDED. AUCKLAND, October 18. A substantia] decrease in the price of hides and a subsequent fail in values of leather goods in Now Zealand was predicted by Mr R. A. Colyer, "of Colyer, Watson, and Company, to-day. The tariff proposals, which have yet to be ratified by the Senate in America, | are having a very serious effect on the hide markets throughout the world, he , said. The decline in values had been very acute in the Argentine, and also in Australia. Uncertainty as to when the tariff will be actually introduced and made law has practically held up hide trading throughout the world for the past month. The position in America is that a tariff of no less than 10 per cent is exected to be imposed on hides, but the Farmers’ Party is fighting for 20 per cent. Tanners and shoe manufacturers are prepared to concede' a 10 per cent tariff on hides provided that they can be assured of a 25 per cent duty on shoes and a 20 per cent duty on leather. As the. United States is a big importer of shoes and leather these proposals have had a depressing effect, on English and Continental shoe manufacturers and tanners. New Zealand is particularly affected by the tariff proposals, as a large proportion of our annual output of hides and skins is shipped to the United States. The result here has been that the hide market has been steadily declining for the past six weeks. Conditions in Australia are even worse, because not only has Australia been affected by this tariff uncertainty, but the timber and coal strikes, coupled with trading inactivity during the election, have caused a feeling of general depression in the Australian tanning trade. New Zealand heavy ox hides have usually found their way to Australia, but to-day it is impossible to dispose of this class of hide anywhere. Hides are now about 50 per cent lower in value than they were last year and are back to the very low values ruling in 1928. There does not appear to be any prospect of an immediate recovery. America will only be interested when definite information in connection with the new tariff is available, and whatever duty is imposed there will reduced prices of New Zealand hides accordingly.

It can be confidently predicted that the price of shoes in New Zealand will decline with the lower prices being paid for hides, he added. In fact, there is every possibility of New 1 Zealand shoe-manufacturers becoming emJbarraSssed by. imports from Czechoslovakia, which country is now dominating the bnoe trade in Germany, and is endeavouring to get a footing in the United Kingdom, as with new' American tariff regulations she will probably lose her big trade with tlife United States,