Manufacturers’ Sales

Dominion, Volume 30, Issue 266, 6 August 1937, Page 13

Manufacturers’ Sales

Sir—Has the manufacturers’ association told the public the complete story with regard to the state of trade in the Dominion? As a traveller of long standing. I do not think so. . Briefly, the position is this: During the depression vears, retailers allowed their stocks to fall much below normal levels, then cuts in income, exchange, additional duty, and sales tax. etc., all brought about a reduction in turnover, and retailers stocks fell to new low levels. Factories were slack for the want of orders, and commercial travellers experienced a lean time. , . ... Business commenced to improve with a change of Government, factories were busy again, and commercial travellers reported record business. The retail trade boomed fas reference to sales tax collected will prove), but the I rouble began just as soon as wholesale prices commenced to increase. World-wide trade recovery brought about increased demand, and, with demand, prices advanced. This was inevitable. Retailers, urged to lay in stocks to avoid these increases, stocked up as they will always do: thus to-day retailers are holding stocks far above normal. Not for twenty years have retailers held such stocks, but trade is good since the spending power cf the people has improved, thus the stocks held will soon be reduced (at good profits, based on cost) and a demand for further goods must result. Readers will thus see that the present position is purely temporary, and is largely brought about through the natural desire of the retail trade to buy when prices are right. Who would refuse to buy bread and butter lines on a rising market? That trade is good there is no question whatever. In proof I instance the following facts: My firm commissioned me to buy a car of popular make, but although 1 have tried to do business with agents extending over nue hundred miles for cash, delivery cannot be made for seven weeks! Articles of furniture have been on order for three months, and I still await delivery. A small building job (about four days’ work) took exactly live months to complete, the job being held up for doors, glass, and tradesmen. —I am, etc., C.T. Palmerston North, July 31.