The steady decline at the wool sales and the depressed market for dairy produce, afford .plenty of food for thought as to the immediate future. While the woof sales opened at lower prices, the drop was not unexpected, ana the fall was accepted more or less cheerfully as something inevitable. It was expected, however, that the bottom had been reached, but prices are still falling, and the latest sales show a very substantial drop. A good deal of wool is being passed, so that altogether the inflow of money this season from wool, is going to be a rather marked z-eduction on fozmier years. In regard to butter and cheese, the market is also depressed, .and the drop in prices will mean a great deal. Certainly the quantity has increased, hut with a market well-filled and heavy stocks on hand, it is evident there is a substantial carry over. The Canadian market has helped to case tlie position, but in the main, thei-e is going to be a substantial decline in the volume value of the commodity exported. It is not usual for the two staple commodities on the list of exports to he affected so seriously, and the general result will be an all round stringency. During the last two years the export of wool lias been worth round about sixteen millions, while butter and cheese ran to nearly twenty millions. The third string to the bow, frozen meat, worth about nine millions, is also not so promising this year. Out of an export of about fiftyfive millions, the three commodities refered to, returned forty-five millions, equal to sixty-two per cent, of the total exports. Fluctuations in value .are therefore pf material moment, and the drop now being experienced means a very substantial decline in u.e inflow of money for the year. This will have a restrictive' effect on enterprise, trade and general financial intercourse, so that it is not surprising financial authorities are uttering words of caution. The general effect is certainly being appreciated, and on that account the situation should be taken well in hand betimes. While the position calls for careful handling, the outlook may he improved at .any time. It is possible for the outcome of the Naval Conference now sitting to give an improved tone to world affairs, and anything in that direction should help trade. The country has the supplies if the markets improve, and on" that account New Zealand would lze ready for such a pleasing emergency
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Hokitika Guardian, 24 January 1930, Page 4
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415Untitled Hokitika Guardian, 24 January 1930, Page 4
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