THE RISE IN PRICES.

Samoa Times and South Sea Gazette, Volume 3, Issue 139, 5 June 1880, Page 3

THE RISE IN PRICES.

In every State but California there has been a considerable rise iu prices within tho last few months. The demand for goods, which came with the revival in business, exceeded the supply. To meet this demand involved increased expense I pro ratio, so that in many cases the goods 'actually cost manufacturers move tlai similar goods a year or two ago. lor years manufacturers had been working for a small profit, and sometimes were losing money. They had reduced expenoes to the lowest possible per eent. and had so cheapened their products that that they could compete with European manufacturers in markets open to trade with the world. But with tho better times and greater demand for goods manufacturers increased their prices. They added to the ost and likewise to the profit. The result is an advance of some lines of goods from thirty to fifty per cent. This advance has not yet reached this State, but it will come. Purchasing goods in the same factories, it will bo impossible for our dealers to avoid a rise in prices. This rise gives our local industries the opportunity they have needed, It was probably very dillicult to compete with old and wellestablished factories when they were working at cost, but now when th >y are pressed with orders at largely incruasi.-. 1 rates, there should be no hesitation m this coast to contend at least for our own market. The Pacific Woollen Mills, now in the course of building, is but one enterprise of many which will find profitable employment. It is estimated that this mill will cost about $700,000. This is a small sum compared to our investments in mines, but it will give work to many hands that otherwise might bo idle. While we would not discourage judicious investments iu mining enterprises, it would be better for the city and State if a larger' proportion of our surplus oapital were placed in the more permanent industries. With an immense product of wool, there is no real reason why we should not supply our own market with goods of that material. Labour lias advanced in price in the East as well as products. The California manufacturer does not have to contend against the extreme low wages which for many years prevailed in the East. As a consequence, be can manufacture go-ids at a less relative cost. It has been said that only the coarser kinds of woollen goods could be manufactured in this city, on account of the highnr rates our manufacturers had to pay to labour, (.roods of which the raw material was the larger item of cost could he produced here, while it was found cheaper to send woo! East and there manufacture all the varieties of goods in which labour was the larger item of cost. It is <|uito probable that improved facilities will, under the higher rates of labour now paid in tho East, enable our manufacturers to produce all kinds of'woollen goods on this coast a.s cheaply as similar goods can be made elsewhere. The depression in business which has marked the post two or three three years has brought about a condition of things which rend',-.:, possible the cstaiilishmeutof local faeloriesoliu paying basis. With high rents, high interest, and high rates of labour, it was impossible to compete with producers who had lower markets for all the principal items of expense in their business. Tho dull times brought our prices down nearly to a level with the rest of the world. In many respects this is the cheapest of American cities to livo in. Rents have come down, and the cost of food has for some time been less here than iu Eastern cities. A. dollar will buy more of all the necessaries of life, in !Sar< Francisco, than in New York or Boston. It only remains for us to improve our advantages. The moment we utilise the idle labouring force of the State and city, we shall infuse new life into all the arteries of trade.—.San Eranciseo Morning Call, April 7.