PRICE DECLINE

Evening Post, Volume CIX, Issue 123, 27 May 1930, Page 12

PRICE DECLINE

■ITS EFFECT ON INCOMES

' Mr.- G. W. Clinkard, Secretary for department of Industries and' Commerce, in a. summary of finance, trade, and industries of the Dominion for the quarter ended 31sfc March, reports, inter alia, of reduced'purchasing power clue to lower returns from produce exports.

"One fact, stands out clearly from the ■rent, (he reports), and that is that almost -without exception the prices of our principal primary, products have been steadily declining for some little time, and that this fact has seriously reacted on the incomes of the producers and ou the financial aud /economic condition of the Dominion; Our tirade balance and our banking figures are not as favourable as they were twelve months ago, but'that .'is not entirely due itothe reduction in the total value of our exports. It is due also to the greatly increased importations which occurred during the past year. ■ "Yet while these two factors have seriously affected the position, that is not to say that the position is serious. On the contrary, our trade and banking figures are better than, were anticipated, and takij\g everything .iaito consideration. are fairly .satisfactory." • . ..... Production is steadily increasing, and toew records in productivity and in quantities exported are being made each year. While :that is so there can be little cause tor alarm with prices, no lower than they av,e at present, for the increases in quantities of produce sold.must to some'extent at any. rate make up for the lower prices received. • " "The remedy indeed seems to lie in the direction of securing a greater result from , the expenditure of each unit of capital and labour, or in other words from a steadily increasing production both by more intensive arid extensive means." , .