RISE IN PRICES.

Auckland Star, Volume LXIV, Issue 114, 17 May 1933, Page 11

RISE IN PRICES.

GENERAL UPLIFT. FIRST F.OR THREE YEARS. ENCOURAGING SIGNS. Comment on the rise in price during the past three or four weeks of a number of products in which New Zealand is vitally intereisted was made in Wellington by Mr. J. T. Martin, managing director of Wright, Stephenson and Co., Ltd. He said that whether the. rise in prices was the result of confidence inspired by the possibilities of the World Economic Conference in June, or appreciation of the fact that surplus stocks in many departments were not heavy or prices abnormally low,'he<did not know, but the fact remained that there was a general uplift.

"During the last J,hrce ar)c j a ] la ]f years, prices have beCn steadily falling, with occasional breaks followed by a drop, to a etill lower level," Mr. Martin said. "The present upward trend is wider spread than any former movements, of the last few years, and might bo the precursor of ihe general advance in prices for which the world has been so long waiting.

"Metals are recognised as the best trade- barometers. Take the advances during the, last four weeks: Copper has advanced from £29 17/6 to £34 10/7, lead from £10 17/6 to £12 8/9, spelter fr6m £14 17/6 to £15 10/, and tin from £156 11/3 to £187 13/9.

Dairy Produce. "New Zealand dairy produce has made a considerable advance, due mainly to rumours of Government quota restrictions, but also possibly influenced by prospective reduction in tariff barriers on the Continent. On April 20 finest New Zealand butter, was bringing 68/ a cwt, and cheese 38/ a cwt in London. To-day butter ie 80/ and cheese 49/ for white, and 54/ for coloured, London. "Jute lias advanced in the same period from £15 10/ to £17 6/3, corn sacks from 9/3 to 9/9 a dozen, wool-packs 2/7 to 2/11 New Zealand, cotton 5.73 d a lb. to 6.19 d a lb, and rubber 3d to 4Jd lb. Wool is showing an appreciable advance and the undercurrent is firm, inducing close observers to believe that higher, prices will be experienced at subsequent London sales.

"Grass-seeds, particularly cocksfoot, crested dogstail, brown-top and clovers, for which New Zealand has established a great reputation in Northern Hemisphere countries, are decidedly on the up-grade. A strong demand has set in for maple and garden peae grown in Canterbury and Marlborough districts. A grade Garton oats, which a few weeks baek were selling at 1/11 per bushel, are now 2/4 at Bluff .and Dunedin. "Lamb and mutton have not yet shared in the general upward movement. Rabbitskins and sheepskins are up and tending higher. American Tariff. "If the American Smoot-Hawley tariff which has been in operation for the last three years is modified or substituted by the old McCoombcr Jones tariff, and there is good reason for believing that this will be one of the results of the World Conference in June, then we can look hopefully forward to trading again with the United Statee as we did prior to 1029. "Of course," ho added, "it is undeniable that these prices are still so low that they admit of no profit to the producers, but on the other hand it is gratifying to note the steady upward movement which, if continued, will xiltimately place the farmers of this country on a profitable basis."