RISING PRICES
GENERAL COMMODITIES NO ACTUAL INFLATION. DEMAND ENCODE AGED. FREE MARKETING FAVOURED. (United Press Association—By Electric Telegraph.—Copyright.) (Received 9 a.m.) LONDON, July 18. The "Westminster Bank Review," discussing the recovery in the prices of commodities, says it is only half the truth to call the vises an "inflation boom." Though America's monetary policy is largely responsible for the increase, there has been no actual inflation.
Even if the rises in the past fe7>' weeks shou.d be followed by a. setback, there is ground for confidence that this would only be partial, Compared with the previous falls, prices have risen only moderately. Former drops have been counteracted by optimism engendered by recent events. Consequently, the rising prices, instead of checking demand have encouraged it.
The greatest dangers in the situation are that the suppliers should seek to force prices up too lush and thu.s check the demands, or that the rise should cause too rapid a breakdown of the marketing and production restriction schemes. The sooner free marketing of production is resumed the better, but it must come in an orderly fashion.
If these dangers are avoided there U reason to believe that, though difficult times are ahead, the recovery of commodity values marks a definite turning of the corner.
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Northern Advocate, 19 July 1933, Page 5
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210RISING PRICES Northern Advocate, 19 July 1933, Page 5
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