The Dominion. FRIDAY, SEPTEMBER 29, 1939. TRADERS' DIFFICULTIES

Dominion, Volume 33, Issue 4, 29 September 1939, Page 8

The Dominion. FRIDAY, SEPTEMBER 29, 1939. TRADERS ' DIFFICULTIE S

The explanation of the Minister of Industries _ and Commerce regarding the enforcement procedure under the Price Stabilization Regulations implies a common-sense recognition of the need to facilitate quick decisions on a practical basis. There can be no doubt, however that up to the present importers and others have been hampered and bewildered by the rigid insistence on the maintenance of prices ruling on September 1, regardless of the increased costs and charges incurred in importing similar goods and materials. Naturally business in consequence has been at a standstill, and the replenishment o stocks and supplies made impossible. With the war, prices throughout the world have moved upward, and delays here in Rew Zealand have already resulted in opportunities being missed of buying in overseas markets at something like normal rates. These delays have been to the disadvantage of New Zealand consumers, as well as to importers, and each week’s postponement in forwarding orders makes, or is liable to make, the position worse. . . The intimation from the Minister of Industries and Commerce that additional facilities are being provided to enable traders to ascertain the extent to which their increased costs may be passed on, may therefore relieve the situation to some extent; but the outlook for importers, and their customers nevertheless is very disquieting.. The shortage of- sterling funds has reached a point at which the import trade of the Dominion has been brought almost to a standstill so far as future supplies are concerned. The conditions laid down by the Government, through the Reserve Bank, under which exporters, to New Zealand must accept time payments for the goods and materials they supply are not proving at all satisfactory. Apart from the delay in making the payments, there is evident a sense of insecurity among overseas business houses as to whether, even where dates of payment are definitely fixed, sterling funds will be made available to meet the instalments as they fall due. This is an unfortunate and very serious state of affairs. Some improvement should result from the use of the export credits of £4,000,000 arranged by the Minister of Finance while in London; but up’ to the present time this method of financing has been shrouded in so much mystery that .little advantage has been taken of it. Now that it is better understood it may be expected to assist those exporters who desire to retain their association with this market; but the credits can only be utilized with English exporting houses, and many lines usually sent to New Zealand from Britain are not at the moment available from that source, owing to war conditions. This means that they must be obtained elsewhere and, as stated, sterling funds are not available.

So far the public has not felt the direct effects of the sterling shortage at all seriously. The stocks usually carried by warehousemen and by retailers have been sufficient in most cases to meet requirements for the time being. But with no fresh supplies—or very small supplies —coming forward, there is prospect of a serious shortage of many lines in common domestic use; as well as of materials used in factory production. In the latter case the lack of materials may necessitate the closing down of some classes of factory work, with a consequent spread of unemployment.