PRICE DIFFICULTY

Waikato Times, Volume 125, Issue 20916, 22 September 1939, Page 9

PRICE DIFFICULTY

DEFERRED PAYMENT SYSTEM GOODS HELD IN WAREHOUSES GRAVE DISLOCATION POSSIBLE (Special to Times) AUCKLAND, Friday The inability of merchants to price goods actually imported, but on which payment is held up until Reserve Bank allocations become effective, is one result of changing exchange rates overseas. In many cases price increases are as good as certain, yet until the transactions are completed it will not be possible to supply the necessary details to the Price Tribunal on an application to advance prices. In consequence, large quantities of merchandise, sometimes urgentlyneeded on the market are being held in warehouses. Apart from the effect of rises in freights and marine Insurance risks, most classes of imports art) expected to show higher landed costs because of price increases overseas. It la pointed out that the Price Tribunal could never hope to cope with the volume’ of prospective applications to advance Dominion prices beyond the level on September 1, and the opinion is expressed that unless the system is changed, it will surely break down of its weight. In any case the delays in attempting to deal with the Hood of applications would cause acute shortages on the market and grave dislocation of trade. Prlee Increases Hardware on the British market is firming steadily, this class of merchandise being particularly affected by munition manufacture in England. Rises Jt 10 to 15 per cent, or withdrawn quotations are general. Of especial Importance to the Dominion trade is the effect on builders’ supplies. Porcelain ware of many classes is dearer by about 10 per cent, or prices are now those ruling at the date of shipment. Padlocks are up by 15 percent. Some supplies of rain waterpipes, sanitary ironware and sanitary pottery have withdrawn quotations. Notification has been received of the suspension of all export business in screws owing to British Government orders.