SENSATIONAL SLUMP.

Marlborough Express, Volume LIV, Issue 126, 31 May 1920, Page 5

SENSATIONAL SLUMP.

"NOT AT ALL SURPRISED,"

BANK OF NEW ZEALAND CHAIRMAN ON POSIT^N.

DEAR MONEY THE CHIEF; CAUSE. , :

Mr Harold Beauchamp (chairman of tho Bank of New Zealand), interviewed by a. Times representative, made an interesting and importhnt statement with reference to' the jreceut remarkable slump in prices which lias taken place in "Amencd the; United Kingdom, and ~-■ tho Far East—a. slump ; \yhich Mr Beauchainp had predicted in our columns some two or three' months ,agci _ ■ , : "I am riot at sill surprised!, 5r sAid Mr Be;tucha:tnp, "to notice this clump , which has alrQadyoccim'Ted, in the value of certain commodities in both the United' States, Japan, and Great /Britain. It was-,, indeed, caily to be j expected in view of the restrictive j policy that has been pursued by banking institutions as a /whole. and tiie high rate pf exchange., coupled with the fact t)va* many important industries are now so largely increasing their outpiut- I think that those, three factors are to a very great extent, the caiic© of the slump; but no doubt* dear money is the chief cause of the fall in prices in the different countries I have mentioned. AFTER COMMANJD'EEE—S*UBw_ STANTIAL DROP. "So far as. this' country •is concerned, after the lifting of the commandeer;, I fancy that we shall also see a substantial drop, in many of the primary commoditia'? in which we are interested; and this will doubtless assist the people who at the present time are feeling the pinch; in respect to the high cost of living/ Of coursS, ■'we arc all awaiting with, interest the result of the conference that is to take place between tho representatives of the frezing;. companies and th Government in reference to what the position will be with regard to frozen meat after Jun© 31st, the date when tho commandeer comes to an end. That question is giving rise to a great deal of anxiety on thei part of tho freezing companies; and I have no doubt that some solution will bo foamd by which the producers: in this country will, siiffer to no very great extent. 'But it is quite obvious that they will have to look for very much lower prices in regard' to stock —stock on the hoof, I mean—tb;">n | those ruling during the past few j , yeais. "As to wool, I a.n not surprised also to not© the drop that has occuitTed in America and elsewhere; but that will apply principally to coarse, crossbj.'eds. of which large stacks were held by the. Imperial Government) that being the quality of wool so largely usedl during the war for military clothing. Of coxnsc, thare is a very large quantity of wool yet to.be got rid of. I don't know,, what the quantity is; but there will be .some 1,250,000 bales in Australia and New Zealand. In addition to this, there are large stocks in England, but a portion of these stocks have been transferred ■ to New York and Antwerp, where at recent sales there has been a fall in prices, us the icables have indicated."