PRICES OF FOOTWEAR

New Zealand Times, Volume XLVI, Issue 10614, 12 June 1920, Page 7

PRICES OF FOOTWEAR

HO PROSPECT OF FALL AIANY FACTORS TO BE CONSIDERED. .•* _____ ___ OPINION OF MANUFACTURERS.

‘‘ln view of the recent fall in tho prices of hides, it is natural that tho public should expect a corresponding decrease iu tho prices of footwear, but they are doomed to disappointment,” said Air C. J. Ward when discussing this most important matter with a "Now Zealand Times” representative yesterday. ‘‘The great difficulty in the realisation of this expectation is tho distance we are from the markets from which wo got tlie greatest proportion of the materials used in the manufacture of modern footwear. Manufacturers in the Dominion have to purchase their supplies further ahead than any other country in the world, and. nut cue of them would think of providing himself with a smaller stock than would enable him to seo at. least eight or nine mouths ahead. Whilst it is not safe to say that none of these goods have been purchased at. peak prices, considerable (juaivtiticS have been bought at very high rates. Then again, leather is by no moans abundant. These condition's mean that prices will bo maintained much longer than the average citizen is prone to believe.

GLUTTED WITH ORDERS. “If it is a moral iniquity to work on replacement values, the, trader must protect himself by a. system of averaging values. Tins also retards the immediate effect of falling prices. In addition to the factor of a- comparative shortage of finished leather, boot manufacturers both in Australia and New Zealand have more orders on hand than they care to contemplate. To sum it up in the words of one of the largest manufacturers in the Commonwealth, ‘Sellers of goods for manufacture into boots are welcome; buyers of boots are anathema.’ In considering the present fall in hides many factors have to bo taken into consideration. Australian prices are largely the reflection of drought condition’s; New Zealand rates are affected —as in the yea-* before ‘price regulation’—by the condition of winter bides. In addition to this, American buyers are not operating either in Australia or here. Those in tlie monwealth who are competent to judoe appear to ho certain that there will be a very cbnsiderahlo recovery in September next. If the expectation should be realised then before the manufacturers are. clear of orders at present in hand, and before the tanners have sold the loathei; purchased at recent high prices, the conditions of a rising market will again_ become operative. There is no question that owing to the present turmoil of prices and the unexpectedly sudden movements of the market that the wisest men in both the leather and boot trades are unable to forecast the future.

DEARER STANDARDISED BOOTS. Mr Will’d went on to say that as a result of an investigation, by its accountants, the Board of Trade has granted authority for an increase in the selling prices of standardised boots bv 37 per cent. In arriving at this conclusion, the selling margin of the retailer was reduced by 8 1-3 per cent., so that the'amount allowed for distribution is approximately the same as in tlio earlier issues of standardised boots. Goods at the new values will bo placed on the market shortly. Should leather fall, these prices would bo subject to immediate revision by tho Board of Trade. The public is amply safeguarded by the fact that the authorised prices are indelibly stamped on the bottoms of the boots. ENGLISH RATES PROHIBITIVE.

Referring to imported footwear, Mr Ward said that recently arrived samples of English manufacture were so high in price as to practically prohibit buying for local markets, i'ho position at the moment was that the Dominion was practically dependent on local and Australian manufacturers. The Commonwealth lead taken the place of those countriesTrom which wo formerly imported. Even so, it Was quite possible, nay, probable, that wo would not have a- groat deal ot footwear from that country in the near future. This because the heavy nrotcctiou duties recently imposed in Australia on raw materials must have its effect in fixing the selling price, which would place the imported article at a disadvantage. “Undoubtedly, there will lie « fall in price's in tlio fu"tiu'c 3 > said jNlr Ward in conclusion, “but taking into consideration all the' factors mentioned it is extremely unlikely that that will bo soon on material. It is to. bo sinecrclv hoped that the recent high prices of hides will never again ho reached, but the increasing cost of labour, which must bo expressed in the price of the article .manufactured, is a very material factor in present prices.”