The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News The Echo and The Sun. TUESDAY, AUGUST 15, 1933. A BRIGHTER OUTLOOK.

Auckland Star, Volume LXIV, Issue 191, 15 August 1933, Page 6

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

TUESDAY, AUGUST 15, 1933. A BRIGHTER OUTLOOK.

For the cause that lucks assistance, For the wrong that needs resistano* For the future 'in the distance, And the good chat toe can dn.

When business begins to feel the touch of returning strength the first, signs of life may not be easily seen, but there is no mistaking the movement after it has got Avell under way. Many signs are needed to point to a general advance —rising 'prices, a better demand for goods in the shops, and a spirit of hope and there is evidence that such an improvement has begun. The , latest London papers show that by the middle, of July wholesale prices had reached the highest level for three years, and that this was causing a large increase in production at Home. The demand for raw materials was growing, and the expansion of business was being reflected in substantial increases in retail sales. The rise in prices first showed itself in Stock Exchange securities in autumn of last year. Then in the summer months there was a strong advance in the prices of metals, followed by rising values for wool, and more recently an improvement in da t iry produce and other staple exports.

In Britain, in Australia and in South Africa conditions have been steadily on the mend since the beginning of the year, and in foreign countries, .too, there is a mbre cheerful tone in trade and industry. For this there are many reasons. After four years of depression the countries of the world have adjusted themselves t6 a lower level of prices and incomes, have "squeezed out" much of the inflation that produced unhealthy growth in the post-war years, and have used up accumulated stocks. Perhaps the last factor has been the most potent of all in turning the scale. In New Zealand, as in other vi countries, people have found that they can no longer postpone buying. Retail trade, therefore, has felt the refreshing stimulus of reviving demand, and attention has to be turned to the need of buying new stocks. This helps manufacturers and shows its effects in a better demand for wool and other materials, thus passing on the benefits until there is a gain all round. Within the Empire the advance appears to be solidly based, and there is an absence of sudden upward flutters such as those in America. Yet even there the basis for recovery is broad and sufficiently firm to bring success if the people are able to resist the temptation to force the pace. To New Zealanders an indication of the needed price-rise is supplied by the. butter market. Since Easter there has been an advance of 30 per cent by slight steps of one or two shillings a week, but producing in the aggregate a remarkable improvement. The prospects for New Zealand become more encouraging again in the light of such advances as this.