LEATHER PRICES JUMP

Evening Star, Issue 19724, 26 November 1927, Page 3

LEATHER PRICES JUMP

WORLD SHORTAGE OF HIDES REFLECTION IN BOOT PRICES (Special to tup. ‘Star,’] CHRISTCHURCH, November 25. The reported rise in the price of leather has not altogether come as a surprise to Christchurch boot and shoe manufacturers, who have been anticipating it for some time. Nevertheless this sudden stimulation, following on the recent industrial depression, is not exactly welcomed .with open arms, so to speak, and a significant fact is that, the Christchurch tanners will not book any further orders unless they are subject to confirmation. This indicates that prices will go still higher—possibly as high as 25 per cent, or more. This increase .in the wholesale trade will, in the course of business, be passed on to the public, but it all depends on the stocks that retailers hold when this will happen. It is forecasted in some circles that the inflation in retail prices, which it is estimated on present indications will be from 10 per cent, to 20 per cent., will not make itself felt until the new year. There are Certain, lines that must go up—ifor instance, men’s and children’s footwear. Thdle are manufactured chiefly from hide leather, which has been alfected more than any other. Patent leather boots and shoes will also reflect the increase, but women’s shoes, particularly the colored kid (which are in vogue at present) will not bo so badly hit. It will be only the solo leather that will be affected in this line. There is still plenty of footwear about, but manufacturers and others, in order to make themselves secure in view of the anticipated rise, have been working on their old stocks, which are consequently getting lower. It is bound to make it hard to get business from the manufacturer’s point of view, as the retailers will hold off buying as long as they can, and so will the pubJia. • The whole cause of the advance is the world shortage of hides, and, the increase in the price of the dressed product is, according to an opinion expressed in one quarter, more than justified by the consequent advance in the value of hides. This state of shortage in the market has been brought about largely by the heavy operations of American and Continental buyers, and the present level is the highest values have reached since 1920. In January this year hides were bringing 7d a lb, but to-day’s price is ll]d, while a further advance of Jd a lb is reported this week on the Melbourne markets. „ The view was expressed that prices must still go higher, and this, it is considered, will undoubtedly be of great benefit to the Now Zealand manufacturing industry. With prices at a higher level on the Home market, the dominion will be in a better position to compete with the imported article, and the sudden jump in values is looked on more or less as a blessing in disguise in this respect.