The New Zealand Times (PUBLISHED DAILY). FRIDAY, JUNE 13, 1879.

New Zealand Times, Volume XXXIV, Issue 5680, 13 June 1879, Page 2

The New Zealand Times (PUBLISHED DAILY). FRIDAY, JUNE 13, 1879.

Any reference to the general commercial depression which prevails both in England and in the Colonies is deprecated in c ertain quarters as being likely to add to rather than lessen the evil. It is undecniablo that unless the question is handled with great care this undesired and undesirable effect may bo produced. We havis upon several occasions lately adduced incontrovertible statistical evidence of the real progress and prosperity of the Colony as shown by the steady and rapid i increase in the production and export of wool, grain, &c., and consequently are unlikely to be looked upon as alarmists. So far as this city is concerned wo believe that there is no likelihood of any severe depression being felt among

the poorer classes. The West Coast Haihvay, the new Post and Telegraph offices, and the new works to be undertaken by the Corporation, are likely to provide ample work for all the laboring men in and around Wellington. A general reduction in wages ma3 r be enforced in consequence of the commercial depression. The cost of tho necessaries of life is now low and will probably be considerably lessened within the next year. We believe that so long as the profits of employers are as small as they now are, the real friends of the working man will recognise that it is both wiser and fairer in the long run that lie should be content to bear his share of the loss caused by the decrease in the profit arising from his labor.

The following figures will show the extent of the depression in England up to the end of tho past year ; we adduce them both as evidence of the increased purchasing power of money, and as evidence of the wide-spread depreciation in market value. The following prices are given by the “Statist ”:

The figures here given include most of the chief necessaries of life, and should convince the most sceptical— First, that the cost of the neces. saries of life must shortly be considerably reduced; and secondly, that the profits accruing to the producer must be infinitely less than two years ago. London prices influence the world’s market, and a glance at the above table will show that Flew Zealand as a pastoral and agricultural country must now be feeling the depreciation in value of wool, grain, hides, and tallow, very acutely. If further evidence of the general disturbance of trade is sought for, we do not know of any more striking example which can be adduced than the number of commercial and tradesmen’s failures. During 1878 in Great Britain there were no less than 2(343 failures of wholesale houses, as against 2172 in 1877. Nor was the state of retail trade any more reassuring ; the number of failures belonging to this class having risen from 8850 in 1877 to 12,41(3 in 1878. Publicans were the most numerous class, as no less than 1183 failed during the latter year; and newspaper proprietors formed one of the smallest classes, three of whom failed in 1877, and no less than nine succumbed in the following year. From the above wo think it is clear that neither the action of the banks nor the over-speculation in land can be fairly regarded as the primary causes for the hard times of which we hear so much complaint. Producers seem to have actually glutted the world’s market with goods of every description. In consequence, in order to increase the consumption of "produce and to widen the circle of consumers, a general reduction of prices has taken place in Great Britain. The first effect of such a universal over-production on prices is to cripple the producers by lessening the demand for and reducing the price of the raw product. But where competition is at all brisk a fall in the price of the manufactured article soon follows, and the retail price is lowered in proportion. A commercial wave of this description takes time before it makes itself felt in all quarters of the commercial world, but it is none the less sure to take effect in the end.

When it was announced a few weeks ago that the Public Works Department found that all tenders for contracts were sent in at prices ranging from 25 to 40 per cent, above the figures which ruled a year before that date, we asserted that such a condition of affairs was anomalous and was unlikely to prove permanent. Since then sawmillers on the West Coast, station owners up country, and mastercarpenters in Wellington have been compelled to insist upon a considerable reduction in wages. The proposals have not in any case met with much active opposition, and we regard the fact as a favorable sign of a reasonable recognition of the community of interests which exists between employers and employed. That laborers’ wages will be somewhat reduced throughout tho colony may be accepted as almost certain. At the same time we believe that there is very little likelihood of any dearth of employment, and so far as this city is concerned the working men need be under no apprehension of “hard “ times.” The recovery in the price of wool during tho current series of tho London wool sales will also tend greatly to relieve the monetary pressure in th? colony.

— 187S. 1870. s. d. R. d. Corn, wheat, per qr. 39 7 51 3 Cotton, per lb. 0 5 1 Iron, per ton 43 0 58 0 Hides, per lb.. 0 5$ 0 G$ Tallow, per cwt. 36 6 45 0 Wool, per lb 0 12$ 0 14