MEETING THE MARKET

Nelson Evening Mail, Volume LXIV, 21 February 1931, Page 11

MEETING THE MARKET

THE MANUFACTURERS’ PART There are encouraging indications that tlio tide of commercial adversity lias turned, and that the llood will sweep forward gradually to a tfiitisfactory level of prosperity. New Zealand butter on the London market has risen during the past fortnight from 112 s to 1245. Our cheese is also slightly higher in price. The last Wellington wool sale l recorded ail advance of a half-penny on some grades of wool.

These facts are significant to New Zealanders, for (lie prices of dairy produce, wool and meat are the barometer upon which our commercial and industrial well-being depends. Economists assert that a period of depression 1 is often healthy, or at least is essential for industrial health. It restores tile proper balance of the industrial organism. Whereas a period of activity is often one of prosperity in appearance more than in reality. This Dominion is now in a position to test the accuracy of this theory, for it has passed through an era of amazidg prosperity ancl now inis emerged into tile most disastrous “period of depression” in its history. The. next three o\ four months should prove whether the test by life has restored our industrial health. The signs are propitious, and if our captains of industry anil of commerce read them aright and act oh them with confidence there should soon lie an improvement to record. There is a natural tendency in a crisis for business men to hesitate to engage in new enterprises, and to bo cautious in the conduct of the old. Those who arc still doubtful are reminded of tiu* Prime Minister’s assurance that “given the support of all sections of the community it should not be long before the economic machinery is back into good working order.”

Merchants and manufacturers can give this support by a definite lowering of prices. Appeals to retailers are apt to fall upon deaf ears if the prices of their goods at the source arc maintained at present levels. It is well known that in some businesses not affected by awards of the Arbitration Court wage reductions have been enforced for some time, yet tlic prices . of their goods and services do not appear to have fallen to any appreciable / extent. With the almost certain prospect of awards being reviewed by the Court, it is reasonable to expect that all businesses concerned'will gladly adjust prices accordingly. Tt is possible that there arc many people in every community prepared to take advantage of lowered prices. > The periodical sales conducted by various business firms prove that that tendency needs little encouragement. Hence it appears certain that a wide field is offered to the manufacturers and wholesalers to reap substantial benefits and at the same time do their share in restoring normal conditions.