PRICES FALL.

Taranaki Daily News, 25 May 1920, Page 5

PRICES FALL.

SLUMP IN BRITAIN. FOOD REMAINS STEADY, K T«ltgr«pb.—Press Assn.—Copyright, London, May 22There is a wholesale fall in prices. It began with foodstuffs and is extending to clothing, concurring with the America dump. Many lines are already cheaper. the newspapers are giving prominence to tbe fall in prices of commodities, following the slump in America. ' Some predict a further general decline and •uggeat it is largely due to the action of the hanks in restricting credits, but «o far the decline in most commodities has been very moderate and the bank«rt* only effort has been to conserve reMane* for the use of traders as distlnct.from speculator* chief deoline is in Egyptian cottoll, which has fallen 9d in a week, chiefly because the Egyptian banks netted their customers to reduce their babe, thils compelling numerous operator# li Alexandria to sell Tt is also to favorable news regarding the praptcts of the next crop. Aa the cables havo already indicated, there has been a considerable fall in industrial metals. Wool has fallen less than other commodities, but it is not considered likely the fall will make a very appreciable change in the cost of living at present owing to forward orders having been booked at the highest ratesFood nriees are showing only seasonable declines, while there is small chance of tbe cheapening of bread, sugar and riee; Addressing shareholders of the Fine Cotton Spinners' Association at ManChester, Sir Herbert Dixon, chairman, likened die recent speculative activity ftrie to the 'recapitalisation of the spintrade in Lancashire to the South Itk finbble. A dav of reckoning would etrine as surely as it did then. He held the view that a reduction of values wsb inevitable, leading to the enforced writing down of capital with consequent •prions loss to present buyers. BIIITISH~ItfONEY~MARKET. HMH KATE OF INTEREST. London, May 21. City opinion is that Australian Treasurers will not have an easy task in raising loans, unless they are prepared to pay a high rate. Although the competition of high interest in industrial flotations has practically ceased, owing to the bank restricting facilities for (peculation, there is a nrosnect of none; continuing dear and the discount market ia.discussing the possibility of a farther increase in the bank rate. There is also the fact that British Government investments offer a high rate of interest."'

The Erwheoiier bonds maturing in 1922 now yield the investor £7 Cs per cent., and the new housing loan for Rent, Middlesex and Essex of fire millions It 8 per cent, issued at 051 and redeemable in 1940-60 yield* £6 6s 9d percent. There is undoubtedly plenty of money for investment in gilt-edged •ecuritie« if the- terms offered are .sufficiently attractive. A circular issued by the British Metal Corporation attributes the decline in the price of non-ferTous metals since Mtruary to over speculation, the fear of a war wealth leyy, and the restrictions of bank credits- The position ps -regatta (peculation is now sounder -and the sttirade' of the banks is understood to be due to the banks wishing to eheck unsound ventures, but the fear «f | levy is widespread and genuine and day produce a great financial crisis. The teener Partiament decides upon the no signs"ofTermancy. BU7MP TNTWOTS AND CLOTHES. Received May 24, 850 p.m. London, May 24. The Whitsuntide holidays revealed a strong movement to economise. There were many fewer visits to the seaside thin were expected, despite beautiful weather. The newtpapers are eagerly discussing tike feu is prices of the necessaries of life, bat there are no signs of a pernmoent falL Indeed, bread and sugar at* likely to go higher, and rents are imre^sing. Nevertheless there is a record slump in boots in Northamptonshire, where the warehouses are so choked with supplies that the three days working week is Hkely to cons into operation. The clothing trade in Leeds is also depressedFactories are no longer working at high gresaure, owing to orders stopping sudtt is evident many people are viable tt buy fit the present prices. The slump may mean the discharge of many WOtkew.

CAMPAIGN AGAINST PRICES. POSTCARD PROPAGANDA. By Telegraph.— Press Association. Wellington, Last Night. The coat of living was considered at tt meeting of the Women's National Council to-night. It was decided that, <m a fixed date, every member of the council should early in the coming session raid to the member of Parliament for her district a postcard, drawing his attention to the rising cost of living and stating that she expected him to take action in the matter. It' was abjp decided that the Women's Rational Council should concentrate Qppn the redaction of food prices and of HeW Zealand woollen goods. It was decided to join with the Returned fioldiett' Association to discuss a campaign for bringing down the prices of neees-