COMMERCIAL.

Northern Advocate, 19 June 1920, Page 3

COMMERCIAL.

A GENERAL REVIEW

AUCKLAND, June 18. The wholesale houses report a continuation of the slight improvement

in trade that was noticeable at the

beginning: of the week, but conditions remain very unsettled, chiefly on account of the contradictory news regarding prices, saye th e "Herald's" commercial editor. This is also having an effect on the retail trade, as buyers ar e being encouraged to expect lower prices. The difficulty is to know which prices are going up and which are going down, and the element of uncertainty is making buyers hesitate. ]

Advancing Prices.—On the one hand there appears to be a moral certainty of an advance in three of th e most important foods in the civilised world; wheat, possibly dragging the other breadstuffs in its train; sugar, with the contingent upward influenc c in all those foods containing sugar; milk, and all its by-pro-ducts. On the top of this comes the news of the successful resumption of the meat export trade to America. This trade only began in March, 1914, when America became an importer for the first time, and the trade was interrupted by the outbreak of war. All this makes it difficult to anticipate reduction in the cost of food, which the Government Statistician estimates as 34 per cent, of the total expenditure of the average household. !

Prices Falling.—On the other side are frequent cabled references to tumbling markets in Britain and America, and Auckland importers are desperately searching for them. They have found a noticeable fall in certain Eastern products, such as sago, tapioca, desiccated cocoanut, preserved ginger, coffee, and certain spices largely owing to the reaction in the value of the rupee; but they are mor 6 interested in quotations for manufactured goods of which stocks in New Zealand are very low. Accordingly the Niagara mail was awaited with mo'e than usual interest, but advices were very disappointing. Instead of the attractive reductions that were expected, manufacturers ar e quoting full rates and even advances. Such articles as axes and household ironmongery ar e dearer than ever, and the manufacturers explain that the position is du e to scarcity of labour, and high cost of coal and other raw materials. Although this is the official explanation, it is ' generally held here that the real reason is that manufacturers are inundated with orders from all parts of th c world, many of which they have not the slightest chance of overtaking for two or three years, and as long as this condition lasts there will be no reduction in pri. es. Meantime cabled messages are continually confirming advaicf.;. This week different cablegrams ha.c come regarding the confirmation of orders at an advance of 30, 50, and in one case of 245 per cent, over previous prices these particular advances being in manufactured stationery and fancy goods. Japanese manufacturers appear to be very much in the same position. The cheap prices quoted when they were first exploiting the world's markets have all disappeared, and only this week a cable advises an advance of 60 per cent, in Japanese glassware.

Tea: Early cables advised that the tea offering at this week's sale in Colombo showed a slight improvement in quality and importers have been curious to see how this would affect the market, having regard to the low prices ruling at recent sales for the huge quantities of lower grades which were swamping the market. Yesterday a privat e cablegram stated that at the auction an advance in price had taken placg in those teas which showed improvement in quality. A large importating \ firm in Sydney explains that th e high prices prevailing for the last few months have induced the Ceylon growers to "pluck coarse"—that is strip the plants of every possible leaf, so as to take advantage of the high market.

Potatoes: Market is fully supplied from recent arrivals and further importations from the south are due shortly. Growers are working hard to get the embargo on importations into Australia removed, but no alteration is so (far announced. It therefore appears that the local market will have to absorb the large crops and this should bring about lower prices unless the consumption is increased by the rise in the price of bread, at present artificially kept down belqw Its natural level by a huge vote from the Consolidated Fund, Market is unchanged fit 9s 6d to 10s ex store.

Onions: The market is quite upset by the quality of recent importations being so irregular. Th e onions do not appear to have ripened at all well, and they ar e not keeping. Repicking is necessary but even then they are only worth about 13s while the poorer lines are almost unsaleable.

Oats: Good demand is operating on small supplies, and a further advance is reported, best feed beingworth 7s 2d ex store. Southern quotations convey the impression that holders will hav e no difficulty in disposing of all that are left.

Wheat: Stocks aye. |. a bad way. The Government is understood to have secured sufficient for bread till next harvest, by importation from Australia, and every effort is being made to increase production. A minimum price is guaranteed, and as this may b e exceeded there will be more inducement to grow wheat than three has ever been. Unfortunately seed wheat as very scarce,