The Comer Turned

Manawatu Times, Volume LIV, Issue 7212, 19 July 1933, Page 7

The Comer Turned

What The Recovery of Commodity Values Means •United Press Assn.—By Electric Telegraph—Copyright. Received Tuesday, 9.10 p.m. LONDON, July 18. The Westminster Bank Review, discussing the recovery of commodities, says it is only half the truth to call the rises an “inflation boom.” Though American monetary policy has been largely responsible for the increases, there has been no actual inflation and even if the rises of the past few weeks should be •followed by a setback, there arc grounds for confidence that this will be only partial compared with previous falls. Prices have only risen moderately and former drops have been counteracted by tho optimism engendered by recent events, consequently rising prices, instead of checking the demand, have encouraged it. The greatest danger of the situation is that the supplier should seek to force prices up too high and thus check the demand or that rise should cause an over rapid breakdown of marketing and production restriction schemes. The sooner free marketing and production is resumed tho better, but it must come in an orderly fashion if these dangers are to be avoided. There is reason to believe that though difficult times are ahead, the recovery of commodity values marks a definite turning of the corner.