DEFLATION IN SYDNEY.

Auckland Star, Volume LIII, Issue 142, 17 June 1922, Page 7

DEFLATION IN SYDNEY.

WRITING DOWN STOCKS,

WORST PHASE PASSED. iß.v ('able.-Press Association. - Copyright.i i Received W.:;(i a.m.. SYDNEY, this day. The - Daily Telegraph" writes: ".Never ip ihe history of the Australian trade has there hcen such a writing down of the stock and assets in company bal unco-sheets as during the past eighteen months. Some companies acted under pressure, others voluntarily, and the aggregate runs into hundreds of thou hands of pounds. Few houses escaped, but those handling soft goods, drapery, hardware, rubber, oil. paper, motor cars, jam. and Island produce arc most vitally affected. Some items in stockhave been reduced by :!(> to 40 per cent.

The opinion is held among financiers that the worse phase of the dellation has been detfnitely passed. Bankers are much easier in their minds regarding the commercial outlook than when goods were coming iv at relatively very high prices. The (low could not be checked, as orders had been placed abroad and exporters insisted on tilling them so thai importation of dearly bought goods went on for some iime after the steep descent in prices had set in.— (A. and X.Z. Cable.) »-'«»..!_. an*