COTTON MILL BUBBLE.

Hawke's Bay Tribune, Volume X, Issue 185, 21 July 1920, Page 7

COTTON MILL BUBBLE.

PAY OF BIJ'KOXfNG BAY BK AT HAND. I ran only compare, Hie recent specula!ion in cotton mills 1 o the South Sea Bubble. This startling dccdaration was made by Sir Herbert Dixon, at the meeting of the ( ’of ton Spinners ami Doublers’ Associated) in 2du Ilchester on Yay 21st. “The day of reckoning will conic as surely as it did in that wild period oi speculation,' ’ said'Sir Herbert. ‘‘lt is true that mills cannot b<* erected today under four io five times tin l prewar price, but ran any sane man believe that when tile world settles down again machinery, buildings, etc., will be aide to mr.iiitnin these unheard-of prices. Ju my opinion an inevitable reduction of values must lake place, leading to an enforced writing down again, and a consecpicnt serious loss to tin* present buyers. do not presume to b’emo sillers who. being human, imf'crally accept a • profit of from 2<h) to mm per rent. On the other hand, all my sympathy is with a buyer of what I look upon as inflated shares. Ninny large companies have been forced, much against their will, to bow to the wish of the shareholders ami part with concerns of the highest, standing against their better judgment. It is, of course, on th.- cards that this wave of prosperity will last , long enough to write bark values to a proper level, but. when everything is 1 ’any one to deny that it is a bad thing ; [ said in favour of rhe movement. I defy ; ; any one to deny that it is a. Lad thing ■ I for* the industry, ami, what is even; [more wnportant, a real danger to the I | nat ion. .The cost of product bm. must . I be permanently inert used, apart f- om ; ; jvages and expenses, and when Imrcy - ! ■is again in full swing, with possibly ; America producing beyond h r home , requirements, we may tind ourselves i very heavily handicapped as e<mipetitors for Hie surplus requirrmciits of ; the world.’' i