STEADY RISE IN COST

Ashburton Guardian, Volume 70, Issue 70, 4 January 1950, Page 4

STEADY RISE IN COST

PRODUCTS FOR STERLING AREAS CHANCELLOR’S ASSUMPTION QUESTIONED A V (N.Z.P. A.—Copyright) LONDON, Jan. 2. Sir Stafford Cripps’s assumption when he announced devaluation that the £ sterling would ’Continue to buy just as much as it had done previously of goods and materials produced in the sterling area has proved mistaken, states the financial editor of the “Manchester Guardian.”

“Prices of sterling materials have gone up by leaps and bounds since September. Rubber is now one-third dearer than it was then, crossbred wool costs nearly half as much again, and tin is 10 per cent dearer than it was before devaluation. The rise in sterling prices of these and other commodities must sooner or later be reflected in British industrial costs and unless there are reductions in the purchase tax, cuts in profit margins, or reductions in subsidies, the cost of living will probably rise more than the 6 per cent. limit laid down by the Trades Union" Congress as a condition of wage stabilisation.” This prediction so far as woollen clothing is concerned is supported by the secretary of the Woollen and Worsted Trades Federation (Mr G. M. Pearson), in a statement issued in Bradford during the week-end. In this he states that if Dominion wool prices maintain their present level suits and overcoats will cost 10 per cent, more in a few months’ time. If the Board of Trade refused to raise the ceiling prices for utility garments, added Mr Pearson, the trade would be foiled to reduce the quality of the cloth used to make them.

Support for the contention that price is now the chief rationing influence in Britain is given by the latest Gallup poll conducted by the British Institute of Public Opinion. This shows that clothing is still the chief item of replacement desired by the public. Although the preferences of men and women varied considerably both sexes placed new clothing and footwear above all other requirements at the present time. This preference has not changed since the abolition of the rationing of clothing and footwear last February.