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Hokitika Guardian, 4 December 1930, Page 4

The condition of affairs in regard to the coming wool sides at Christchurch, mentioned in the. thought for the times to-day, does not suggest a very happy outcome for the sale. The catalogue promises to be congested with held over wool from last season, when the price was not attractive for sellers. Those who could afford to do so, held off the market, but this season’s prices do not suggest any improvement, in fact prices so far are substantially below last year’s returns. It may be expected that those who can will hold off again, still hoping for better rates later. Many of course cannot afford to hold over, and must make sacrifices. As a result, many station holders are in very difficult financial circumstances. Tn some cases flocks are beine sacrificed at very low rates, as the unfortunate farmer is not able to hold on further. The general effect of the dro-p in wool prices is very far-reach-ing, and apart from the sharp decline in the amount of money for general circulation, the loss by the farmer if reflected in the business of those with whom ho has been trading, and the loss of the business man is further reflected in the effect on general trading, The drop in wool prices together with the'steady decline in butter prices, b going to cause very lean times. There will he a very' substantial decline in the volume of money in circulation and that stringency affects all classes of business and stagnates enterprise, 'flic country is facing a- difficult situation. It is not, as : n the past, a passing phase. "With primary produce prices depressed all round, there i,s very little hope of an early lift. The market has now sagged far below the expectations of the most pessimistic, and there is nothing to suggest an early recovery. Great Britain is our best and largest customer, and though the people are getting cheaper commodities than heretofore, the general stringency in that quarter of the globe, is restricting the purchasing power of the people as a whole, and with the world surplus of raw materials being an increasing quantity, the Home market is glutted to such an extent that prices must continue at a lower level while such conditions last. New Zealand has ample wool to export, as also butter and cheese. All these commodities have grown in volume, but the markets are not equal to adequate absorption even at the reduced prices prevailing, so that conditions do not point to anv sharp recovery. The jstnte of affairs is now such that in every walk of life and in all classes of trade, those directing affairs have to be very circumspect. The future is not promising at the moment, but hopes are always high, and at present folk are wisely bnsv setting their house In order. It is the isafest course to pursue, and prenare to meet ; the emergency of difficult times while they prevail.