Prosperity Ahead

Sun (Auckland), Volume II, Issue 528, 4 December 1928, Page 8

Prosperity Ahead

Public Spending Rises Steadily

ACTIVE buying in all spheres of retail trade foreshadows the^returning confidence of the people in the country’s financial prospects. The p’ast two months have been particularly busy in Auckland retail houses. It is considered by some business men, however, that the people have not yet responded with sufficient confidence to the bright trade outlook, and much money remains in trust uninvested.

rpHE writing is on the wall for better times for New Zealand. It is evident from production and marketing results that an era of prosperity is at hand. Many commercial men anticipate that it will be as pronounced as the post-war boom, but without the destructive influences of the inflated period. Even if _ this supreme optimism is not justified, nothing short of industrial disaster can check the onrush of progress in the immediate future. During the past few weeks- —and in some instances over a couple of months

t!- ri- fit ac % % '■& & IK ifc —the turnover in Auckland business houses has shown a distinct increase, and the activities of Christmas shoppers have been marked. Yuletide purchases have started earlier than usual, and many shopkeepers in the city are anticipating record business over the festive season. This enthusiasm for spending i 3 not so marked as many commercial leaders would desire, however, and in their minds is not commensurate with the obviously bright trade outlook. “We have been doing vastly better trade during the past few weeks, but there is not the spontaniety about the buying to reflect adequately the better financial position,” the head of one big firm said. “Our increased turnover, which amounts to something like £9,000 over November of last year, has been achieved by solid advertising and heavy driving. There is not the life that should be expected when top prices and wider markets are being shown for our produce.” The fact that half of the dairy produceof the Dominion this year is

coming from the Auckland Province possesses a pleasing significance from the viewpoint of this city, and it appears that the stage is set for a really good time throughout the Northern districts. A talk with city business men reveals the invariable sluggishness of public reaction both to boom conditions and industrial stress. When the last depression arrived, it was approximately six months before the people fully realised the rriousness of the check and stopped spending. Similarly now, the relief from financial husbandry is coming slowly, and almost reluctantly. MONEY TIED UP Many solicitors in Auckland ajf holding money in trust for prospective small investors, but insufficient confidence is displayed in commercial enterprise under present conditions to cause its release into potential profitmaking schemes. This, too, is considered by tradespeople to indicate an unwarranted lack of faith in the country’s immediate stability. On the other hand, motor-car sales —always a sensitive reflector of spending temperament —have risen enormously since the close of the winter and the announcement of che primary producer’s outlook. Part of this spending is purely seasonal. People buy machines for their summer holidays, and in. the winter sales sag perceptibly. “The idea of a summer vacation without a motor-car is now unthinkable,” the head of one motoring firm commented, “and every summer we register heavy sales just before the Christmas holidays.” New and improved designs of cars, together with attractive selling prices, have assisted to create an almost universal desire for machines for both service and pleasure, while the demand for used cars operates largely as a controlling factor in new-car sales. Firms Invariably are asked to accept old vehicles in part payment for the new, and the man who purchases a car for the first time usually starts motoring modestly with a secondhand machine. FUTURE IS BRIGHT In drapery and kindred trades business is exceedingly brisk, and the heads of firms report that Christmas shopping is being done earlier than usual—with the attendant advantages of greater selection of goods, less crowding and more attention. Even the General Elections, business men say, did not retard the revival of trade this year, and once the germ of optimism had bitten the controllers of family purse strings, an era of steady spending set in. It is true that at this time last yeai the Dominion was enveloped by a wave of pessimism in anticipation of a particularly hard winter. This prognostication cannot be repeated with any degree of .justice this year. On the contrary the finger of progress is coming slowly back to its correct position, and shortly will be pointing directly toward prosperity.