FALLING MARKETS.

Manawatu Herald, Volume XLII, Issue 2206, 23 November 1920, Page 3

FALLING MARKETS.

IS AN IMMEDIATE ANT) CONSII )E RA P.LE R EDI'CTION POSSIBLE ?

The Auckland Star ."ays; — £ ‘Vv’e are daily treated to reports in our newspaper." of falling markets in America, (be Homeland, and in Japan; in fact, so much is being made of the matter that the average ‘man in the street,’ and also ‘the woman in the house,' is in danger of misunderstanding the position, and may be led to believe that prices will be ‘cut in half’ in a few days’ time. A fall lias certainly taken place, Ini-t —-‘but it’s a big but’ —the fall Ims been from an extreme height—a height that has never reached Auckland, for the following reasons: Auckland drapers, and, in fact, all New Zealand Importers, carried stocks from six to twelve months ahead of the top of the market value, and the public ot Auckland and New Zealand have had their drapery below London and New York prices during the war period, and are still doing so. The fall has not boon sufficiently great to bring drapers down to Auckland prices. The following comment from a wellknown periodical on the spot is valuable: The Manchester Guardian, recently reviewing the position of the -wholesale drapers’ trade, says the situation has changed greatly since March. In place of a boom there is now widespread depression and much short time unemployment. Orders from both Home and abroad have fallen- off, duo largely to the adverse Continental exchanges and the growing belief that prices arc likely to continue to fall. Householders have benefited to some extent, hut the finished articles generally do not show similar reductions to raw material, ywing (o the ad-

vanned wages in every process of manufacture, higher rent, rates, transport, taxation, and other'charges. in the face of these factors it is difficult to account for the belief in an avalanche of falling prices- within the next few months, or to find evidence in support of it. The Guardian shows that of 75 items in life drapery trade wholesale priees-of -11 advanced in comparison with March, If! were reduced, and .18 were not change*!. The advances usually were more substantial than the reductions. ’•’