The Daily News. THURSDAY, FEBRUARY 9, 1922. EFFECT OF RAISING PRICES.

Taranaki Daily News, 9 February 1922, Page 4

The Daily News. THURSDAY, FEBRUARY 9, 1922. EFFECT OF RAISING PRICES.

In the latest review of Home trade and finance, it is stated, in the course of comments of the wool position, that “a spurt in values has checked a slight revival in the demand at the piecegoods end.” Manufacturers appear to view the upward movement with great misgiving, and fear that the new basis will be difficult to maintain, while spinners “would feel more confident if prices were governed less by raw material, and had more support from the weaving section.” So long as every little spurt of trade is seized as an opportunity for raising prices, so long will the permanent welfare of the industry suffer. When will the manufacturers realise that prices must be brought within the restricted spending power of the people if trade is to expand on the right lines? There is no lesson that has been more patent than this during the period of depression, nor could it be otherwise, for it is a fixed and immutable economic law, by no means confined to the woollen trade, but to all industries. Practically there now exist conditions for building up trade and industries on a more favorable and permanent basis than has been possible for a long time past- AH/that is wanted is that the cost of production shall be reduced, and that the selling values shall follow suit, and all concerned will be well advised to take this lesson to heart, particularly as the outlook for supplying foreign markets is gradually brightening. The tendency of the value 1 of the sterling to regain normality is a most hopeful sign, indicating as it does that the process of recovery has begun, and under favorable conditions may be expected to continue.