The Auckland Star: WITH WHICH ARE INCORPORATED. The Evening News, Morning News and The Echo. SATURDAY, JANUARY 17, 1914. PRICES AND TRADE.

Auckland Star, Volume XLV, Issue 15, 17 January 1914, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED. The Evening News, Morning News and The Echo.

SATURDAY, JANUARY 17, 1914. PRICES AND TRADE.

For the cause thai Imeks cstwtaaea, For the wrong that need* retittmnae, For the fiUurt in the distance, And thm fM* that tea eon do.

If we are to judge by the "Times" review of trade conditions for, 1913, the onilook is by no means so satisfactory tor the coming year asias been generally anticipated. For, according to this high authority, the movement of general .prices was generally downward toward the close of the year. As everybody knows, the general tendency of prices has been upward for some years past, as evidenced by the various sets of index numbers compiled by different statistical authorities to mark the course of the world's trade. Afore especially when a rise in prices increases the cost of living without being accompanied by a rise in wages, it is a source of great inconvenience to the vast majority of people, and complaints against the high price of food have been widespread for the last three years throughout the civilised world. But there is another important aspect of this question to be considered in the encouragement given to trade and the investment of capital by an all-round rise in prices. When prices are going np, everybody with -money to invest is attracted by the hope of larger profits, employers take on more hands, business men extend their undertakings, more work is done and more wealth is created, in brief we have the combination of circumstances that constitute what we call good times. On the other hand a general fall in prices, even though it may lower the cost of living, is invariably accompanied by depression and lack of confidence, limits employment and the investment of capital, and tends to prodnce bad times. Consequently the incipient downward tendency of prices recorded by the 'Times" has a very serious bearing upon the future of the world's trade, and more particularly on the commercial prospects of a countrylike New Zealand, whose prosperity depends so largely on the prices we can secure in the world's market for our staple exports. It should be hardly necessary 10 remind our readers that good times in New Zealand aJwaye coincide with period* of rising prices. We pay our roans and; the interest on them toy selling our-wool, and butter, ami cheese, and flax, and frozen: meat; And .whenever the prices of these staples rise money is comparauvely plentiful, everybody is confident and hopeful, and general prosperity pervades the land. If, on the other hand, the prices of our pastoral products fall, we can be certain that money will 'be "tighter*' than ever, and chat not only will our resources be seriously straitened, but our credit will be injuriously affected, and our borrowin<* powers will be correEpondingly limited. All these considerations apply more particularly to any fall in the unaxket value of our chief products, and the comments of the "Times" upon the prospects of 'the frozen meat trade are therefore of special importance to us. Now, the chief point of the 'Tunes" comments on this topic is that, while direct competition from tbe United States is now almost a dead letter in this trade, the South American meat companies are most dangerous rivals to Australasian producers. But it must be remembered that the Argentine and River Flate trade to which the "Times" refers is now practically controlled by the American Meat Irust; and it is generally believed that this great Trust has transferred the centre of its activity to South America, so as to be near the I sources of supply and to escape legal interference with its projects. Further, it; is held by many competent observers that the American Meat Trust has already secured a foothold in Australia,] and we have frequently been warned that it is trying to establish itself in New Zealand. If the evidence to this effect is reliable, it means that sheep raisers and frozen meat exporters throughout Australasia may be destined tr> see all their profits above a, bare minimum swept into the capacious hands of a Trust backed by many millions of capital; and such a transformation of one of our staple trades would certainly have, the worrst possible effect upon the financial and commercial "prospects of ZhsrDomhdvn, 0