The Taihape Daily Times AND WAIMARINO ADVOCATE. TUESDAY, NOVEMBER 23, 1920. COMING EVENTS CAST SHADOWS.

Taihape Daily Times, Volume XII, Issue 3635, 23 November 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

TUESDAY, NOVEMBER 23, 1920. COMING EVENTS CAST SHADOWS.

With which is incorporated "The Taihape Post and Waimariao News."

It is said that coming events cast thei» shadows before, but it is somewhat remarkable that although every English and American paper coming to hand chronicles considerable reductions in most commodities that are regarded as essential to modem life, the shadow of such reductions persistently fights shy of New Zealand; they are not even recorded in New Zealand newspapers, except with such casualty as renders them un«oticeable and doubtful. In opening an English newspaper, which makes business and finance a feature of its columns, rather 'startling headlines met our view, amongst them be-* ing: "Cotton Collapse"; "PriceCutting in All Directions'*: Down 120 Points". Over the report on wool are the headlines: "Woollens Unsaleable"; "The Woollen Trade Lifeless"'; "A Long Drop in Prices". Turning tq another column we see in bold black letters: H Sharp Decline in Grain"; "Unfavourable Business Conditions"; "Bacon 25 Points Down"; Lard 27* Points Down". General provisions also indicate similar decreases in selling prices, but the shadow of such events travels more slowly »than do those of price increases, and it is common knowledge that they usually appear in British newspapers for months before even the shadow of them reached New Zealand. Importing firms in this Dominion's courts of law have made much of their protested right to sell their merchandise at what .it would cost to replace; the words "cost of replacement *' had become a mercantile slo-. gan, and it-is more than passing strange, that it has so suddenly dropped into disuetude. Taking market reports in British and in American trading afcd financial newspapers, no one will deny that prices generally are down, and that they are down permanently. It matters not how long the shadow of British and American markets is in travelling, the substance is real, and will be felt in this country in the very near future. British firms are now filling orders from ' this. Dominion for | various textiles given a year, and even ; two yeaTs ago, not at present ruling prices, but at those current when orders were received. Therefore, New Zealand prices cannot reflect the condition of the textile market either in Britain or America for some time to come. To importers the prices at which they can buy is the market price, regardless of what market reports indicate, and not until the general price barometer "records price decreases can the public fairly demand cheaper supplies. In September last a British Royal Commission on wheat supplies brought into force new maximum prices for imported flour, the maximum wholesale price being thirty shillings per hundred pounds. That was for -the very highest quality; other qualities were much lower. Those merchants fortunate enough to participate in the ftbur landings from China and in smaller arrivals from South Russia, would secure handsome profits, but those importing from America would not fare anything like as well. Perhaps the surest and most dependable indication of decreasing values is reflected in the qdntations for future delivery. Taking cotton, for instance, the price to-day is less than twenty-four dollars, for delivery next June the quotation is about two dollars less. In a survey of all market reports and quotations for futures a steady decline of values is firmly indicated, while the value of money is .undeniably moving in the opposite direction; Tt is only the matter of a few months when old world market changes will have become common to all Australasia, relieving* the strain in connection with the cost of living, and removing the causes of industrial and social unrest which high prices have been chiefly responsible for. Prices of all commodities are on the downward trend, and money is hardening.