AMERICAN CONDITIONS.

New Zealand Herald, Volume LXIV, Issue 19717, 17 August 1927, Page 9

AMERICAN CONDITIONS.

SEVERE COMPETITION.

SIGNS OF DECLINING ACTIVITY

A recession of activity in the industry and commerce of the United States was described by the New York correspondent pf the Times Trade Supplement in an • article published on July 16. Contributory factors had been the 1, unfavourable weather conditions, the Mississippi floods, and the bituminous coal strike. The reduced activity in the motor-car industry—duo both to a natural' reaction from excessive activity and to uncertainty as to the new types of cars that Ford is presently to disclose—was another in' fluence in restricting trade. Beyond that

were generally lower profits in industry and trade, with continuously declining commodity prices. Falling Commodity Prices.

In spite < f tho increase in credit throughout the country, commodity prices continue to fall exactly as though credit were contracting, tho correspondent wrote Almost every week sees a new decline. At the end of Juno Professor Fisher's index marked not only the lowest level for the year up to that time, but the lowest since 1922, and, except for ... fraction of a point, the lowest level since the war. Since the first of the year the index has marked a decline of 5 per cent. ; since the first of 1926 a decline of over 13 pei cent. The fall has been so gradual that business in general has been able to adjust itself to the changes without too much difficulty; but, of course, this continuous decline has made difficulties in industries where the turnovei is One of these is steelmaking

Steel-making is now running at only i 0 per cent of capacity, and unfilled steel orders are at their lowest since 1910 This is partly due t > the now settled habit of buyers in all lines of purchasing only from hand to mouth, but principally it is due to caution Motor car manufacturing is also experiencing more than seasonal curtailment. It is expected, however,,that when .he new models ap peai on the market there will be a re vival of public interest. [f that occurs there will naturally follow a new stirnu lation of scores of other industries now largely dependent upon the automobile industry Sales Without .'roflt. flow severe competition is becoming in American business is graphically shown in an analysis recently published by the Chain Store Economic and Research Bureau of the operations of such stores. In 1926, according to the Bureau's investigations, the " chains transacted business to the value of £680,000.000 Of this amount £312.000,000 brought in no profit whatever Goods to the value of £54,500.000 were actually sold at a loss, and £177,000.000 at cost plus over head expenses The chain tores are in direct com petition with single industries and with the mail-oi'der firms and department stores, and doubtless much of tneir sell ing at cost or below was to establish themselves in their competitors' territory The latter have met fire with fire, or, rather, the wholesalers sellrng to the competitors of the Chain stores have taken up the policy of aggressive defence Tn all lines they have been offering the independent retailers two or three " leaders " #eeklv at cost, to h P resold to consumers at proportionately lower prices Bnt this policy, while it makes for volume of sale* of reduces profits MOTOR TYRES IN BRITAIN. EFFECT OF IMPORT DUTY. Mr. Churchill's imposition of import duties on foreign tyres has been quickly followed bv interesting results, says the Times Trade Supplement. It is officially stated that the Goodyear Tyre and Rubber Company of America has decided to manufacture tyrqs, tubes and rubber products in England. Factory buildings on a site of about 22 acres have been acquired at Wolverhamp ton. and the installation of machinery and equipment will begin immediately, the company's experts being already on their way to England to supervise the work. It is expected that the plant will bo in active operation by the end of this year or the beginning of 1928, and work will be found for 1000 British employees. SEARCH FOR OIL. NEW GUINEA AIR SURVEY. The Australian Minister of Defence, Sir William Glasgow, announced last week that toward the end of the year two aeroplanes of the Royal Australian Air Force would proceed to New Guinea to make a preliminary aerial survey preparatory to the visit of thu British geologists, who would later investigate the possibilities of finding oil in. that territory. BUTTER AND CHEESE. LONDON MARKET PRICES. The Dairy Produce Board has received the following market report from the London Agency, dated August 12, the prices for the previous week being given in parentheses:— Butter.—New Zealand: Salted, 168s to 172s per cwt.; (164s to 168s) ; unsalted, 172s to 1765, up to 180s (168s to 170s) ; market quiet owing to some profit taking on resales, but position is good, with firm undertone. Australian: Finest salted: 166s to 170s (162s to 1665); unsalted. 168s to 174s (164s to 1665). Argentine: Finest unsalted, 164s to 168s (164s to 1665). Irish creamery: Salted, 160s to 162s (156s to 162 a); unsalted, 166s to 168s (160s to 1665). Dutch : Unsalted, 168s to 170s /160s to 1625). Estonian: salted, 160s to 162s (158s to 160s) ; unsalted, 164s to 168s (160s to 1645). Latvian ■ salted, 159s to 162s (156s to 160s); unsalted, 164s (1625). Siberian : "142s to 148s, according to quality (138s to 1425). Danish: 176s (166? to 168s). Retail prices: Danish advancing to Is 9d on Monday; colonial, unchanged, Is Bd.

Cheese.—New Zealand : White and coloured 92s to 94s (91s to market quiet hut sfeadv. Canadian : White and coloured, 92s to 95s (92s to 94s}, now onoted 93s c.i.f., hut no business. English: Finest farmers. 112s to 116s (108s to 114s) Retail prices unchanged. SOUTHERN EXCHANGES. [BY TBIEQItAFH.-—PRESS ASSOCIATION.] WELLINGTON. Tuesdav The following sales were made on the Stock Exchange to-day:—sj, per cent. Stock, 1933, £IOO 15s; si, per cent. Stock, 1936, £lOl. CHRISTCHURCH, Tuesday The following sales were made on the Stock Exchange to-day:—New Zealand Government per cent. Inscribed Stock, 1936, £lOl 2s 6d; National Bank of New Zealand, £6 15s; Bank of New South Wales (cum div.), £45; Goldshrough, Mort (rights), 8s lid; British Tobacco, 525; Wailu, 19s 4£d;, Kaiapoi Woollens (17s paid), 10s; Goldsbrough, Mort, 455: New Zealand Guarantee Corporation, 9s 2d and 9s 3d. DUN ED IN, Tuesday. The following sale was made on the Stock Exchange to-day:—Upper Nevis, 25b.