Untitled

Hokitika Guardian, 31 October 1930, Page 4

The timber trade its of special importance to this district and at the present time with the slackness in orders, the special importance referred to, is being emphasised. The loss of employment and the consequent decrease in the inflow of the wealth for the falling quantity of. timber exported, are having marked effect on business and general prosperity. A study of the outside conditions does not give a very hopeful outlook as to the immediate future. There are not any immediate prospects of an early revival. Until matters political adjust themselves in Australia, the prospects for a revival in the oversea trade are not promising. The new Australian tariff will he helpful in time, but at present heavy stocks of foreign Umbers have to be quitted. Reports from the other side indicate that business generally is at sixes and sevens. Until there is some prospect of improvement, trade will continue more or less stagnant. Timber like other commodities all over the world, appears to be suffering from overproduction. Russia has now entered some of the great markets of the world, and is competing at any cost with productions in the Baltic. This crippling competition will drive Baltic further afield, and the Australian, market will always be watched. The same applies to the market here, despite the tariff. With the increasing production, surplus products will be quitted at any price by European producers, and so the colonial markets will continue to be beset. This picture is not a very promising one as regards the future, but it is just as well to face the facts. There will be a war of prices for a long time to come, and producers must revise their production costs if they are to compete successfully in the open market. Any reduction which can be made in costs would be helpful In stimulating consumption so reorganisation ap suggested is well worth taking up seriously. There are of course an overplus of mills at present adding all the time to production for which there is not a ready market. For the time being there is going to'be a serious stringency for those engaged in milling, and they must perforce seek means to reduce the cost of production.