PROSPEROUS ENGLAND

Evening Star, Issue 22515, 7 December 1936, Page 11

PROSPEROUS ENGLAND

SOME PHENOMENAL PROFITS DQUITFUL EFFECT OF N.Z.’S GUARANTEED PRICES [Pbb United Fjuh Ammutim.] WELLINGTON, December 5. Some observations on European problems were made by Sir George SMrtcliffe, who returned to Wellington today by the Akaroa from a trip to England. What impressed bun most ; was the prosperous state of the country. There was no doubt that the recovery had been steady, and had been based on traditional business lines. Many, trades and’industries were paying dividends of from 10 to 15 per cent., and a few were returning as much as 25 per cent., while others were making phenomenal profits. Wages were good, and unemployment had been greatly reduced. Undoubtedly some of the increased productivity was due to the demafid for armaments. New Zealand trade with Britain had been very satisfactory. That was no doubt due to the improved economic conditions in the United Kingdom. The increase in the number of persons in employment and the increase in the circulation of money in the form of wages had been the chief contributing factor. New Zealand’s guaranteed price scheme had somewhat perturbed' the market. The Tooley street merchants who had been appointed agents under the scheme would do their very best for New Zealand, but there was bound to be determined opposition from those traders who had not been reappointed. The Government prohibition of the f.o.b. and c.i.f. purchases had eliminated the speculative factor, which Sir George considered bad been to the Dominion’s advantage, and the new policy would adversely affect prices.