THE PRESENT CRISIS.

Wairarapa Age, 29 March 1920, Page 5

THE PRESENT CRISIS.

Need for Economy.

A TRADESMAN'S VIEW. Speaking at a the Eketahuna Chamber of Commerce last week, 'Mr. A. H. Herbert, a prominent tradesman of that township, stated that economy should bo the watchword of everyone present. The prices of goods were going beyond the limit. If things went on like this, it was clear that a serious position would be created. We were simply chasing our tails, and getting no further ahead. Business men found themselves in a peculiar position. They sold goods, and then found they could not replace them at the prices at which they were sold. The prices they now had to ask for things was higher than tho public i could reasonably be asked to pay. A business man knew that every time ho had to advance prices ho only accentuated the position. Working expenses .now were 100 per cent, over those of five years ago, and the peak of wages had not. yet been reached; they must go up further on account of the increased cost of living, and the cost of distribution would also go up. It was a matter* to which all should pay the greatest attention. Trade was panicky. They were paying fabulous prices for imported goods. Benzine, for instance, was a commodity of considerable importance to the district. Prices were soaring, and all the money was going into the pockets of the American capitalist. There would have to be a pull up in some way, otherwise we ran the danger of biting our tails, and then the fun would commence, with the probability of financial collapse. When in London he refused to buy. goods to bring out, thinking that the current prices would ease. They had not easted, but had gone,up tremendously. Personally, he thought it probable that prices would ease by the end of next year, and would go back considerably in. the following twelve months. Tho outlook for tho Dominion's primary products was excellent, and he believed prices would still go higher, bringing an enormous income to the Dominion. Ho was of tho impression that there was too much .■ paper currency in the Dominion, and i consequent inflation. In the meantime; personally, he tried to hold his customers —what business man would riotl —but he always advised economy. The Chamber should also advise economy in every possible direction.