AFTER THE WAR.

Auckland Star, Volume XLIX, Issue 147, 21 June 1918, Page 3

AFTER THE WAR.

CONDITION OF OUR TRADE.

FALL IN PRICES PREDICTED.

A fall in prices of Xew Zealand produce after the war was predicted by Mr. Harold Beauehamp, chairman of directors of the Bank of New Zealand, in his address at the annual meeting in Wellington to-day. Mr. Beauchamp said a criticial position was bound to exist after the war, and two conditions were essential to meet it, strict economy and greater industry and production. The output of our primary products must be expanded. There would continue to be a demand for theso products after the war, tut prices must fall, because our customers 'Would be impoverished.

MARKET PROSPECTS.

Wool seemed likely to be in rather better demand than some of the "other products. Europe supported 152,000,000 sheep, and her flocks had been enormously depleted during the Avar —reports stated to the extent of 55,00U,00U head. Germany before the war had been a large buyer of Australasian wool, but her purchasing power after the war was bound to be very restricted, and there was besides the sentimental factor of the British declining to trade with Germany, or limiting to the lowest possible extent their dealings with that country. The loss in this direction might be recovered by an increased trade with Japan and the United States. Against these favourable factors must be set the measure of the development of substitutes, which has been brought to a line degree of perfection in Germany, and alaothe extent to 'Which shoddy would figure in the new fabtics and materials. y\ c might expect to see high prices continue for butter, 'both for domestic consumption and for export; but we might anticipate a substantial drop in values after the termination of hostilities. With lessened importation into Great Britain, there had been a great increase in price, and this had stimulated enormously the manufacture and sale of margarine, the quality of which, by scientific treatment, had vastly improved. Thousands of erstwhile consumers of butter, through force of circum- : stances, had become accustomed to margarine, and these were not likely to revert to butter if the price of the latter was fixed at too high a figure. Moreover, 1 with the return of hundreds of thousands of men to civil life, and the discharge of a large body of women now engaged on munii tion and other work, we might : reasonably look for an appreciable contraction in the spending power of the people, and this would undoubtedly compel them to economise by using margarine in lieu of butter, even when the present restriction on the shipping 'was removed. We should always find an outlet for butter in Great Britain, but it was possible that prices for some years might oc lower than those current in the 1913-14 season. The demand for meat, and especially beef, should continue satisfactory. There was unquestionably a shortage in the flocks and herds; and until the equilibrium was re-established, prices were likely to be relatively high and subject only to the purchasing "power of consumers. INCREASED PRODUCTION XEEDED. '" The increased production necessary to meet these new conditions and to maintain a level of prosperity can only be attained 'by scientific and intensive farming, which in itself implies small holdings and closer settlement. Placing soldiers more or less unused to farming upon land purchased at present high prices may do some good, but the times and conditions will call for more strenuous efforts than that. New land—especially native land—must be broken in, and that now in occupation must be made to produce a great deal more." Mr. Beauehamp said New Zealand nvas not to any large extent a manufacturing country. Existing manufacturers must eliminate unprofitable and out-of-date methods, and adopt better and more economical" meane of production. After the war New Zealand will be obliged to rely on its own financial resources, for the London money market will be closed to us for some considerable time. " This may prove of some genuine benefit to us in compelling us to 'be self-reliant. With the fall in the prices of our produce it will be necessary literally to make two blades of grass grow where one grew before. Our national debt, which is now some £150.000.000, will be greatly increased before the war is over; and the interest obligations, and the other war obligations, such as pensions, etc., will remain with us for years to come. Taxation cannot be lessened, but may be increased, and a time of stress may be 'before us. It is our imperative duty to take thought of these matters, and to make provision, not for the best that is likely to happen, but for the worst that can overtake us."