TRADE ITEMS

Evening Star, Issue 18020, 14 July 1922, Page 8

TRADE ITEMS

Hi. WOOL MILLS BUSY.

SOFTGOODS TRADE ACTIVITY. GERMAN COMPETITION NOT FEARED. Markets, as usual at this time of tho year, show little change. The June balance tends to interrupt the normal flow ot business, and, so far as export lines aie concerned, the in-between-seasons ponoa has been readied, an abnormal exception being the extension of the frozen meat season. , , The latest English reports show a bedded tendency for a rise in woollen goods. The latest cables quote advances m serges and worsteds of about Is 6d per y ai “* all the trade reports show that large bookings are taking place m the woollen mills at Home. On the other hand, the ‘heavier class of goods, such as cheaper clothing and dress tweeds, are being quoted at very fine prices; but these prices have to be confirmed by Home houses before the orders are accepted, thus showing that even here prices are inclined to rise. English hosiery has been coming to hand at verv fine prices lately, but otic largo order cabled a few days ago for ladies stockings brought the reply that the price was up 2s 3d per dozen. Cotton piece goods, on the other hand, are being quoted at keen prices, and, though there is a reported shortage of raw cotton, the manufacturers at Home are anxious for business, and arc quite prepared to quote keen prices for large business. In fact, prices in cotton goods are inclined to be finer instead of higher. Hosiery from the local mills is practically unobtainable, and the demand for this class of goods cannot be overtaken. In order to supply the demand for hosiery, the importing houses will have to supplement their supplies from Home. The large wholesale houses arc now in the middle of stock-taking, and will finish up their winter season at the end of this month, and will be starting their spring season on tho Ist of August. Trade during the last six months has shown a decided improvement, and tho tone generally of the above houses is of a very optimistic nature.

There has boon a phenomenal demand for woollen yarns during the last twelve months for knitting purposes, owing to the iargc demand for woollen frocks. One house iu Dunedin has practically sold its output of woollen yarn for the next twelve months ahead. The men's clothing trade has not shown any boom during the last six months, retailers practically tilling their requirements with small assortments. The result has been that the clothing factories have not had the overplus of work that accumulated during the war, and have been anxious for work; but, taking these factories all round, they have been kept going fairly .veil. Contrary to most reports as to German competition, one house spoken to said that they had had the privilege of seeing a fair range of German samples, and only in one line was" the English market seriously menaced, that being in the ease of fabric gloves. The question may ho asked: "Why do not the local woollen mills increase their buildings and machinery? This question is quickly answered by the fact that the cost of machinery has increased to such an enormous extent that the articles can hardly 'be turned out at a profit on these highly bought_ machines; and, should there be a decided fall in the price of woollen goods, the highly bought machines would have to stand idle, as goods turned out on them could only be so done at a, decided loss. The fact is only too evident that the local mills cannot cater for all the trade being offered by the local retailer at present.

One effect of the war was to bring the products of New Zealand woollen "mills before the public in a way nothing else could have done. A big class of customer at one time would look at nothing bat •English goods. When these became unavailable, recourse bad to bo made to the local article. Its intrinsic worth then became fully appreciated, and, now that English goods are’ again available, the prejudice in their favor has disappeared. The same class of customer who once asked for them and nothing else, now asks for the New Zealand article, and if it is forthcoming does not worry about* the ■English. Last wool season one prominent local mill was unable to secure in New Zealand enough of the fine-quality wool it required, and made considerable purchases in Australia. To illustrate the difficulties with which ■local manufacturers are faced when desiring to extend operations so as to copo with orders, it may be mentioned that the price of a particular class of machine for making socks was as low .as £lB before the war, could be bought as recently as 1917 for £27, but now stands at £l6O. Mention of possible German competition may sound premature, but there appears to "be in business circles a confident impression that the embargo on German imports to New Zealand will be lifted in February, 1923. There is in business circles considerable impatience over Parliaments? dallying with such obsolete formalities (for so they are regarded) as the Address-in-Beply debate when such urgent matters as trade reciprocity with Australia are thereby delayed. If there has been any really workable arrangement come to by the respective Ministers of Customs, It is believed that it would release a, considerable volume of pent-up business. There is, for instance, the question of an outlet for southern-grown oats on the Melbourne and Sydney markets. Against the Is fid per cental Australian duty on New Zealand retaliated by raising her duty from 9d to 2s per cental. The lowering or removal of the Australian duty might bring business into view. Freights, of course, remain a big bar to trade. This item amounts to 35s per ten on grain from onr ports to Sydney or Melbourne, as compared with 55s per ton to Britain, and this latter rate is regarded as inordinately high compared with those ruling between Australia and Britain. As a matter of fact, it costs practically as much to ship grain from New Zealand to Australia as to ship it from Australia to Britain.

As to the local demand for oats, there | js a certain amount as regards A and 13 ; grade Cartons: hut these are very diffi- I cult to obtain, the bulk of the crops harvested in the districts on which this | centre draws seeming to be under .those j grades. _ | In grass seeds fair demand continues for Perennial rye 'grass, Italian, and Western Wolths. The impression among those connected 1 •with the trade is that building must become cheaper. One of the big factors is the price of timber,' and the trend of the price of imported timber is downwards. Trial shipments are being made of hemlock for flooring, and it is claimed that, despite freight and duty, it can undersell the local red pine, besides being a better class of wood for the purpose. It is believed that immense stocks of timber have accumulated in Russia, and the date of their availability for shipment is already being canvassed. It is even believed that Britain is already absorbing a considerable quantity. Prices of several makes _of motor cars have recently shown a decided downward movement. On the other hand, it is believed that the successive redactions in the price of petrol extending over a number of months have now brought New Zealand prices to bedrock, and they they will remain stationary for some time. The quantity of stocks held in the dominion is ample, but the new regulations regarding buildings in which petrol is stored are causing a good deal of trouble. One of the well-known agents has just opened up a new store in Invercargill. A recent visitor to Melbourne who has returned to Dunedin had the opportunity of testing a new, tyre invention. It is a solid rubber tyre, .but a number of dashpots fitted radially to. the inner circumference of the rim act as shock absorbers to such a degree that ’ a Ford car so shod, driven, over the roughest rouds to be found around Melbourne, ran with a smoothness comparable to that of

lish car on a good surface. One of tho claims mado for tho new tyro is that skiddinc is impossible. lit has not yet been placed on tho market, but its advent will ho watched with interest. British maimfaotnrors exporting to .Australia aro greatly hampered by the fact that goods can he shipped from Swedish. German, and Hutch ports at rates from 10 per cent, to 12* per cent, below those (•harmed bv the British conference lines (save' the London ‘Times Trade Supplement '). This handicap, added to the exchange advantage enjoyed by German (roods will make the British manufacturers’ positiomin the Australian market very insecure after August 1, with Germany will be resumed Altho gh the provisions of tho Australian Anti Dumping Act may bo invoked to meet tho situation, it will take Hrrao to set tho machinery in motion particular! vos the Act is mainly intended to protect Auo Indian manufacturers, tions for protection will doubtless occupy the Tariff Board for months to come.