COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LVII, Issue 212, 7 August 1937, Page 4

COMMODITY MARKETS AND PRICES.

RISING IMPORTS. (By “Penibb.”) That imports of merchandise ar<s steadily increasing is shown by the official figures and the Customs revenue. It is no new thing to see imports expand when the .country is enjoying a period of prosperity. It was inevitable that imports into this Dominion would expand because of the increased monetary returns from primary products exported overseas, and wool alone, as is well-known, realised about £5,000,000 more than ill the previous season. In addition to this the increase in wages lias played its part. When people have money to spend they hasten to supply their wants and their wants seem to increase with the increase of spending power. It must also be remembered that the people have endured about five years ot hard times, and have been forced to economise, and go without many things that they needed. Now that they have more money at their disposal they are satisfying the wants that they had previously denied themselves. Also while during the depression people in their enforced economy had to be content often with lower grade goods, now that they have money to Spend they insist upon higher grade goods and the fact that they have to pay more for the latter does not worry them tor they have the money to spend. A distinct case in point is that of hosiery. It is well-known that hosiery is"an important item of ladies’ wear, and now that more women are at work and on good wages, they naturally desire to.own better class hosiery, and it mav be due to fact or fancy, they believe that imported hosiery is of better qualitv than Dominion made. It will be seen that it was inevitable that imports into the Dominion should expand, and this will be a noted feature of the trade returns for some time to come. It must not lie supposed that tlio increase in imports is confined to clothing for women and men; as a matter of fact, luxury goods such as motor vehicles and motor bicycles account lor no small proportion of the increase in imports. The registration of niotor-velncles now shows one to every sjx persons. THE BUTTER MARKET.

The London quotations for New Zealand butter have recently shown a welcome advance, and it would lie interesting to know the cause. I lie basic cause for the advance is no doubt the old economic law ot demand and supply. Obviouslv the demand, at present, is greater than the supply, and it would be interesting to know wliat country is responsible for the shortage. \Ve know it 1$ not New Zealand, for the official figures show that the Dominion has increased her shipments. It is known tliat Australian shipments have been substantially less, Vmt not sufficient to have a very greut influence on market values. At this time of the year London alid the other cities in the United Kingdom would be relying on butter from the Irish Free State and from Continental countries. It must be from the latter that supplies are short. However, the position is not likely to continue for any length of time, for supplies, on an increasing Scale, will soon be going forward from Australia and New Zealand, for a now season is just beginning here. Whatever may lie the cause, the advance in prices is very welcome. The future is, however, shrouded in mysterv. The chairman of the British Milk 'Marketing Board (Mi- Thomas Baxter), in addressing a gathering of jfiilk producers, expressed the hope that when the Government’s long term policy for the milk industry was announced. the board’s repeated request for the principle of a levy subsidy on imported dairy produce would be incorporated in it. It is not likely that the industry would be subsidised as well as being protected by a levy on imported butter. Wliat is meant seems to be that the levy would take the place of a subsidy and the taxpayers relieved to that extent.

Imports arc also increasing because some importers fear that goods from the United Kingdom will presently be invoiced a.fc higher prices, and are therefore buying more than they actually require. If this is being done to any great extent there will be an casing off in imports later on. These imports, but not ali of them, come into direct competition with local manufacturers. But the intensity of the competition is not now. It will he felt later on if imported goods continue to (low this way. Competition will bo intensified when the British rearmament prbgranrme is completed or nearing completion. All British industries nre keyed up and most Of thehl are working to capacity, mainly on Government orders. When rearmament ends the factories must either shorten sail or find Borne other outlet for their production. As a general rule industrialists do not relish throwing machinery out of work and dismissing workers, and so their efforts at the outset would be concentrated on finding other markets for their goods, and to capture those markets they would not hesitate to cut prices. . , . Our manufacturers have had their costs raised, and their selling prices have been raised also. But British goods are also rising and therefore the competition should not. ns yet, be very severe In some industries there mav lie signs of-an impending struggle with imported goods, hut the actual serious competition will take time to develop, and when it does a new economic position will arise, but its nature is beyond prediction.