Manawatu Evening Standard. MONDAY, AUGUST 29, 1932. SET FAIR.

Manawatu Standard, Volume LII, Issue 230, 29 August 1932, Page 6

Manawatu Evening Standard. MONDAY, AUGUST 29, 1932. SET FAIR.

So absorbing- have the speculations regarding the outcome of the Ottawa Conference been to I those concerned with the markets for butter and cheese that in recent months there has grown up a feeling akin to pinning faith on that great Empire gathering alone as a means of providing a basis for prosperity. -Before Ottawa there was the successful gathering at Lausanne, giving promise of relief in some direction, not yet established, in connection with war’s financial burdens. Then came the discussions in Canada which led to concentration, in this country at least, on butter, cheese, meat, honey and fruit concessions, the while everyone seemingly was forgetful of other circumstances which were operating towards making matters more pleasant for producers generally supplying the British market. It would come, therefore, as pleasant reading to find the reference in the “Standard” a few days ago to the rise in certain commodity prices—an index which invariably points to better times. The higher price for butter is accepted generally as proof of an improved financial outlook, but there are on top of this other striking factors. To refer to the article mentioned : Prices for base metals, a valuable indicator,- have pointed the way to better times for several months; tin, lead, cotton, rubber and jute have shown an upward price tendency, which is being maintained. One would like to see the price for wool in the same category, but the jmsition is still somewhat uncertain, and may remain so until the opening of the Australian sales. There is one very good lesson to be learned from the commodity price basis, though it offers little on the surface to interest the man in the street: the rise is an indication of adjustments made in manufacturing concerns and a consequent readiness to absorb labour in the factories. Cheap commodities are an indication of glutted markets, hesitation by industrialists to build up stocks, and the absence of orders. In short, the less use there is of “key” commodities the less labour there is in employment. There are doubtless many causes for the rises in each section quoted above, but one factor stands out, and that is the industries affected by the depression are, in the case of these commodities, getting nearer to normal. This is a happy augury and is doubly good news for those who now have time to look around the world in general and realise that whatever improvement there is coming is not due to an Empire movement alone. Students of economic history will realise that when prices for basic commodities rise those who benefit are

those engaged in the various processes connected with these commodities. There is thus every reason for New Zealanders to feel gratified with the trend of events. The trade barometer is set fair, for there is no indication that the rise in commodity prices is due to manipulation of the markets.