RECOVERY OF PRICES

Inangahua Times, 18 July 1933, Page 3

RECOVERY OF PRICES

E.' ~ AN INFLATION BOOM. ONLY A HALF TRUTH. (United Press Atsn—By Electric Telegraph—Copyright.) y / LONDON, July 18. ,| The Westminster Bank Review, discussing recovery of commodities, says: It is only half a truth to call the f- rises an, “inflation boom.” Though the American monetary policy has been largely responsible for i- increases, there has been no actual inti ‘ nation. o Even if the rises of the past few o weeks should be followed by a sefcs back, there is ground for confidence that this will be only partial, comparer ed with previous falls. 1 i Prices have only risen moderately. Former drops have "been counteract- ' 1 ed fcy the optimism engendered hy re-j \ - j cen t events, consequently rising prices, i ] j histead of checking the demand, have] . j encouraged it. I The greatest danger or tne situation I i is, that the supplier should seek to u j force prices up too high and thus 0 • check the demand, or that the rise I should cause an over rapid breakdown of marketing, production and restriction of schemes. [ The sooner free marketing and production are resumed the better; but it must come in orderly fashion. If these dangers are avoided, there is reason to believe, though difficult times are ahead, the recovery of commodity values marks a definite turn-