COMMODITY PRICES

Southland Times, Issue 18830, 25 May 1920, Page 5

COMMODITY PRICES

GENERAL FALL IN BRITAIN.

DECLINE IN COTTON AND METALS,

(By Telegraph.—Press Assn. —Copyright.) (Australian and N.Z. Cable Association.)

LONDON, May 22. There is a wholesale fall in prices, beginning with foodstuffs and extending to clothing, concurring with the American slump. Many lines ore already cheaper. The newspapers are giving prominence to the fall in prices of commodities. Some predict a further general decline, and suggest that it is largely due to the action of the banks in restricting credits, but so far the decline in most commodities has been very- moderate, and the bankers’ only effort has been to conserve their resources for the use of traders as distinct from speculators.

The chief decline is in Egyptian cotton, which has fallen 9d per lb in a week, chiefly because the Egyptian banks pressed customers to reduce their loans, thus compelling numerous operators in Alexandria to sell. It is also due to favourable news regarding the prospects of the next crop. As the cables have already indicated, there has been a considerable fail in industrial metals. Wool shows less decline then other commodities, and it is not considered likely it will make a very appreciable change in the cost of living at present ow ing to forward orders booked at highest rates. Food prices arc showing only seasonal declines, while there is small chance of the cheapening of bread, sugar and rice. Addressing the shareholders of the Fine Cotton Spinners’ Association at Manchester. Sir Herbert Dixon, the chairman, likened recent speculative activity and the recapitalisation of the spinning trade in Lancashire to the South Sea Bubble. A day of reckoning would come as surely as it did then. He held the view that a reduction of values was inevitable, leading to the enforced writing down of capita! with consequent serious loss to present buyers.

WHITSUNTIDE HOLIDAY ECONOMY. NO SIGN OF PERMANENT SLUMP. BOOT AND WOOLLEN TRADES DEPRESSED. LONDON, May 24. (Received May 24. 8.50 p.m.) The Whitsuntide holidays revealed a strong movement to economise. There were many fewer visits to the seaside than were expected, despite beautiful weather. The newspapers are eagerly discussing the fall in prices of necessaries of life, but there are no signs of a permanent fall. Indeed, bread and sugar are likely to go higher, and rents are increasing. Nevertheless there is a record slump in boots in Northampton, where the warehouses are so choked with supplies that a threedays’ working week is likely to come into operation. The clothing trade in Leeds is also depressed, and the factories are no longer working at high pressure owing to orders stopping suddenly. It is evident that many people are unable to buy at the present prices. The slump may mean the discharge of many workers.

SLUMP IN TEA. ALMOST A PANIC AT CHRISTCHURCH. (Special to the Times i. CHRISTCHURCH, May 24. According to to-night's Star, a slump, amounting almost to a panic, has occurred in the tea market fluring the past week. Por some time prices were firm, with every indication of a further rise, anti this led to the placing of heavy orders with the local wholesale merchants. Now that a slump has occurred, however, many of the local storekeepers are endeavouring to cancel their orders, thus leaving the wholesaler to bear the loss on the transaction. Discussing the matter with a reporter, a local merchant expressed the opinion that, the market would firm again in the near future. In support of this he quoted extracts from a recent advice received from America, which stated that there had been much speculation among tea men as to the effect the lifting of the Allied trade blockade against Soviet Russia would have on stocks and prices, and which primary markets would be directly affected. It was generally agreed among leading importers that prices would firm, and that for a time supplies would be scanty.

CHEAPER LIVING. PROJECTED CAMPAIGN BY WOMEN. (Per United Press Association.) WELLINGTON, May 24. The cost, of living was considered at. a meeting of the Women's National Council to-night. It was decided that on a fixed date every member of the Council should early in the coming season send to the member of Parliament for her district a postcard drawing his attention to the rising cost of living, and stating that she expected him to take action in the matter. It was also decided that the Women's National Council should concrntrale upon the reduction of food prices and those of New Zealand woollen goods, and join with the Returned Soldiers’ Association to discuss a campaign for turning down the prices of necessities.