PRICES AND PEACE.

Ashburton Guardian, Volume XXXIX, Issue 9477, 14 December 1918, Page 2

PRICES AND PEACE.

NO SPEEDY REDUCTION

Discussing the probability or otherwise of the prices of. commodities being reduced now that there is a prospecb of a speedy peace,. " Vesta," in the Melbourne "Argus," writes that it will be a disappointment to many women to learn that importers in Melbourne give very little encouragement to the hope of a return to normal conditions. None with whom she discussed the situation anticipate a speedy drop in prices. , "It will be next spring," one head of a large business assured her, " before any appreciable lowering of .prices' will, bo seen —perhaps not even then, because a great deal depends upon " the condition of Europe." Cottons, he thought, would be the first to fall—then silks,- then woollen goods..; Two factors would combine to steady the market for cot-, ton goods, in the' opinion of another business man who handles large stocks of those. One is the enormous immediate demand that will come from Central.and Southern Europe lor cotton stuffs, and the other is the withdrawal of so many American workmen for military purposes. The scarcity of labour and other conditions have resulted in a'greatly- reduced 1 cotton crop iv America this year. The crop is | many million bales short, and it will ' be a year before this, shortage can bo rectified... This gentleman, indeed, anticipates a further rise in some kinds of cotton stuff. Linen good 3 must also continue to be expensive, .because it will be some time before the old flaxgrowing areas will be able to be reorganised. There will be a saving effected, .of course, in. the quantity of linen used for aeroplane wings, but nob enough to meet the increased demand n.s the mills revert to their normal work. '

Woollen goods will be subject to. a similar demand from Europe. All the evacuated territories will ,be resuming manufacture, and raw material will be urgently wanted, so that the price of 'wool will be maintained. Australian wool has i already been contracted for by the British Government at a price to be maintained for twelve months after the end of the war, and that fact alone will keep prices steady here. For some time past importers have been literally "on rations," manufacturers apportioning their available output pro rat a amongst their customers. Purchasers, too, have been required to take immediate delivery of the stuffs allotted to them. The result is that the importing houses have their 1919 winter stocks already in hand, or almost to hand, and in the case of some of the bigger importers, goods for 1920 are already bought. The prices of those eioods must therefore be maintained if possible. A failure of demand, caused by depressed conditions here, is the. only thing likely to bring them down. So far an silk is concerned, the case looks .better to an uninitiated person. But, of course, a demand for other stuffs means a de- j maiyl for silks, as well, and though a' silk crop is more quickly realised than the others, prices will undoubtedly bo sympathetically maintained. That, briefly, is the position as pub by men who ought 'to know. Their attitude .was sympathetic, but discouraging. " The world is bare of fabrics," said iono authority, "and it will be a long time before- normal conditions of production and -distribution can be resumed." "Prices will never be so low again," said another, " because the English workmen, the European workmen, will never be asked to work for such low 1 wages again." That fact need not necessarily, of course, keep up prices. If; improved wages, and conditions'' of ,'work . led to increased working capacity and increased output by the workers, the balance would be redressed. But business men are , not sanguine of that result. The prospect of manufacturers'stocks of mjlitary ( cloth, blankets, and underclothing being available shortly in Australia, for civilian use was not considered to be bright. The mills have not stopped working for the Government vet. It ia anticipated that some considerable time will elapse before the majority of our troops can be discharged, and the available stocks will certainly all be needed. Women, therefore, it would seem, must reconcile themselves to a continuance of present conditions for a year at least.