The Northland Age WITH WHICH ARE INCORPORATED THE MANGONUI COUNTY TIMES” “THE BAY OF ISLANDS TIMES” AND “THE NORTH AUCKLAND AGE.” THURSDAY, APRIL 9, 1925 MARKET FLUCTUATIONS.

Northland Age, Volume 24, Issue 50, 9 April 1925, Page 4

The Northland Age WITH WHICH ARE INCORPORATED THE MANGONUI COUNTY TIMES” “THE BAY OF ISLANDS TIMES” AND “THE NORTH AUCKLAND AGE.”

THURSDAY, APRIL 9, 1925 MARKET FLUCTUATIONS.

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Recent developments in the world of trade and commerce cannot be viewed without a feeling of considerable disquietude. A sensational fall has taken place since the end of last year in the price of wool. The fall is in the vicinity of thirty-five per cent,— a very drastic decrease indeed.

There has also been a serious fall in the butter price abroad. This is a very serious matter for the Dominion as the production of these materials is our greatest industry. Admittedly the price of' both wool and butter are still

good, as compared with pre-war values.

Nevertheless the declining values must make a tremendous difference to the producers, who had not the good fortune to dispose of their products when the markets were high. A fall equivalent to something like ]/- a lb in wool, represents a vast sum of money. That money wou' 1 have gone into development, and improved the trade and business of the Dominion generally. Such a serious curtailment in the national income is bad enough in itself, but what makes the matter worse is that the whole position is very difficult to understand.

There has be .. no satisfactory explanation to account for the fall in the price of wool. Recognised authorities still say there is a shortage of wool, and that the supply will not meet the demand for some years to come. Yet in the middle of the selling comes this astounding change in the market.

The producer might well be excused if he harbours a feeling that the decrease is not warranted, and is not a legitimate development. Again, in connection with the butter market the producer is left wondering. No one can be satisfied with the present positition from an economic and national standpoint. The position is not improved by the suspicion in many quarters that there is some connection between these falls in prices and the movements of gold throughout the world. It may be only a coincidence, but these decreased prices have accompanied large importations of gold into the Dominion and the official information that it is likely that the soverign will again be used as common currency.

Ever since the war certain financial authorities, who largely control the finance of this country have harped on what they term "Stabilisation of prices” and a return to the gold standard. Is that not being achieved. If so it is at the expense of the producers, which seems to us a lamentable thing for New- Zealand. The whole matter requires a full and complete explanation, which so far has not been forthcoming.