THE COST OF LIVING.

Taihape Daily Times, Volume XI, Issue 3505, 17 June 1920, Page 7

THE COST OF LIVING.

ARE PRICES COMING DO\\'N‘3 I —--~ , I .._...... , ‘ The unnouneenient by telegraph of :1 [fall of thrcepenee per pound in the price of tea, naturally rai.ses the question if Ll similar result xnay be looked for here. As -.l.nmtter of actual fact, .reta.il prices have already come down in some instances, but inquiries made seem to point to high-grade Ceylon teas maintaining the enhanced price. The explanation given is that heavy stocks are held in New Zeuland whichi have cost fully 3/ per pound wholesale to land here, and it is not expected that holders will sell at :1 loss. t The position is explained as follows:—— Before the war ‘.\‘llC‘ll the rupee was worth 1/4, tea, bought at tha: price per pound could be got out. of the country at that figure. Last Febru-

ary, owing to high I‘2'l.'C of excllangej tea bought at, 1/4 per pound cost 2/9; to bring out, to which lliil to be added higher in-eights and the dutyof 3d per pound. Unfoi-tunately stocks of higher-grade Ceylon teas were purchased last February, when the high rate of exchange was in force; new that the exchange stands at 2/4: it is the poorer teas that are ofl’ering. The head of one firm I‘C1Il(ll'l((‘(l that so far as New Zealaud traule \\‘:l.< cont-zorued they had no use "for common Java tea, conuuon and wither-y Ceylon, or common Indian. Lower prices for such teas would not tempt firms with well-known brands to put. up packets of common mixture. '- On account of weather conditions quite large quantity of common teas have been offering latterly, but fine Ceylons are as strongly held as ever. It is lstated that pure teas are not to he bought at the present time in Ceylon.; “It. is quite natural.” said one packer, 3 “that. when the public read ‘Tea. is: Down.’ they expect the price to fall‘ aut.omatica.lly retail, but we have no‘ intention of ruining our trade by put":ing up lower grade st.ul’f by using cehaper common teas. When I was in Melbourne I found that holders of 111101 grade Ceylons would not sell, and I'], was also unable to purchase any in Sydney. I can assure you holders of high-grade Ceylons in Australia and New Zoaland are not: willing to sell at any reduction, but undoubtedly common teas are easier in price.” This -statement was confirmed by the head of another firm. in the East-

ern tirade, who said he had no intention of packing commoner teas. On the other hand one firm has dropped the price threepenee per pound. The position seems to be that there who Want fine Ceylon too, must. pay the advancod- prices for it. With reference to other lines, it does not seem as if there is much prospect of imxnediate decline in price. One :rno'rch:m‘r did hold out hope that soaps would come down owing to the drop in

‘ the price of tullow. Rice niaintains :1 high figure, and is likely to do so ow- ‘ ing to s('.zll'city in the produc-in-g countries. The consumption of this article locally lms, llo\vover_, fallcii considerably since the lllg’llo.l‘ prices were denl:mdm'l. In respect to many articles the higher wages being paid and the l:_o:.~.\-y cost of frciglit are calculated to keep up prices. Wax matches are very scarce. and the New Zoaland manufactul*er;< are not. in a position to fill all the ordors offering. As far as safety ]‘ll§llCllE‘S are concerned Japan is sup].l_\;iug this market, but tll(r'e appears little hope of English being sent. out for some time to come. One morcliant stated that his most recent. advice from England was that the demand was so great in the Old Land that they did not expect to be able to accept ordei'S for New Zealand for a year or two. 3

A line that has greatly increased in cost. is American mmnc-d fruits, and the result has been to make an opening hol'o for shipments from Amtralia.