IMPORTERS' VIEWS

Evening Post, Volume CXV, Issue 94, 22 April 1933, Page 12

IMPORTERS' VIEWS

CHANGING TRADE FLOW

Wlii.le,. of • course, it is realised that the situation is in a very fluid state, and with international events moving rapidly, it will,be some time before the position cliw'iJies. Xb'cal importers when seen by a "P-ost" reporter-today generally consider" •tnaf' tile"" "inflation of American currency through tho abandonment of the gold standard will lead to the'eheapening of American products on the New Zealand market- with a consequent adverse effect on British imports and articles manufactured locally. "It; will mean that there will be a very considerable increase in the number of receivers of American manufacture coming into the country, even when allowance is made for the fact that local inflation will undoubtedly increase the manufacturing' Costs in America," said the head-of .a big firm of radio importers. ■• "Sets of British make, including, of course, those of New' Zealand manufacture, were just able to hold •■•their own when tho sterl-ing-dollar rate was in the neighbourhood of 3.40. If sterling goes to.par, Britishbuilt receivers are going to be up against it, to say the least of it. America, with her mass production methods, seems to be able to produce at a lower figure than any other country. As a matter of fact, I have just received a trade paper from Germany containing complaints ' from German manufacturers, of radio equipment regarding their inability to meet American competition. Of course, American manufacturers have on occasion resorted to external dumping, but even without that their prices arc extraordinarily fine, and current events will make them ever finer. A lot will depend on the extent of the local inflation, because that, in turn will affect the cost of production-in the United States. Before anything .definite can.be said,, however, it will bo necessary to. wait a week or so for the position to clarify." A member of another firm which deals largely with " electrical products, although chary of- expressing any definite view, did not consider that as far as the general run of electrical goods was concerned the American, move would affect the New Zealand market. "For other reasons there lias been a big diminution 'in American electrical imports during tho past year or so," ho said; "and now that people have got, used to the English article I Aon 't think that they will .change over to "any great extent. Possibly some small electrical accessories-might sell more freely. THE MOTOR TRADE. Discussing, the question whether American motor-cars would come back to New Zealand, a Wellington business man connected with the motor,trade said that the move on tho part of America was aimed primarily to raise American prices. "If it has the desired effect," ho said, "what we gain, on the swings wo will lose on tho roundabouts. It is going to make the position of exchange between London and New. York easier, but you will' pay more for tho ear. American prices are very, much down; this move is • going to put the prices up, which to a largo extent, will offset the gain in tho exchange. "There is another factor besides the exchange. Tho American car gained a foothold here because till quite recently it was unquestionably a better car; it had more power and was suited to our road conditions. During tho last two or three years English manufacturers have awakened to a realisation of what we- want, and are now building a suitable car with more horsepower; in addition, our road conditions have improved. Theso are factors which are going to be favourable to the English makers. The patriotic aspect has. also/to be taken into consideration. People are realising that New Zealand' 3 sole market for produce is Great Britain, and I think that unless the American can very considerably under sell the Englishman, English cars iwill still sell here."