COMMODITY PRICES

Southland Times, Issue 18831, 26 May 1920, Page 5

COMMODITY PRICES

DROP IN CLOTHING.

PERMANENT REDUCTION IMPROB ABLE.

(Special to the Times.)

CHRISTCHURCH, May 25

The reports that the cost of clothipg has dropped considerably on the Home market have caused a great deal of interest in Christchurch, and housewives are asking today whether a fall in prices can ,be expected locally. Drapers, on the strength of private information, predict that if any decrease does take place it will be purely temporary.

The representative of a leading retail establishment said: "The managers of drapery concerns have a very interesting problem to settle. The public demand and seek lower prices, the press indicate' that lower prices rule in Japan and America, and, during the last few days, even in Great Britain itself. At the same time business cables have reached New Zealand within the lust seven days indicating still further advances in cotton goods, and within the last fourteen days similar advices have also been received regarding woollen goods. At the moment no one can forecast definitely whether prices will fall to any extent for at least the next two years. There may be short periods of unloading certain types of stock, which will be confined largely to fasniouable attire, principally clothing and millinary. Naturally the drapery trade would be greatly relieved by a fall in prices, as the position of firms is not an enviable one. Even should wool fall considerably and the actual price of raw material fall, these factors cannot affect the prices of manufactured articles for a very long time, because most af the mills are swamped with orders, and m fact at the moment many are refusing to take any fresh orders for periods of six

and twelve months. The world demand for carpets is phenomenal, and the principal mills in Great Britain have ceased to ;ake orders altogether. Hosiery is another line that is very scarce, and lines are very difficult to obtain. Men’s socks particularly are in short supply, and the makers of these goods refuse to take orders for six months. Under these circumstances it is not reasonable to expect an all round decline in prices. Every drapery concern would welcome a continual fall in prices until the cost of merchandise had receded ;o a reasonable figure.’