TRADE IN AUCKLAND.

New Zealand Herald, Volume LXIX, Issue 21143, 29 March 1932, Page 5

TRADE IN AUCKLAND.

RESTRICTIONS IN TURNOVER. BUSINESS ON QUIETER BASIS. REVIEW OF PAST THREE MONTHS. Quiet trading conditions, which have been experienced during the first three months of -this year, .are a reflex of the substantial reduction in the people's buying power and tho uncertainty in political events. Until the Government's financial proposals are fully outliued and a settlement in the Canadian trade treaty is effected, business will continue on a restricted basis.

Merchants and traders have passed through a rather trying period since the boginiiing of the year. The unsettled state of the London exchange rate, and the continued agitation among certain interests for fixing the rate at a higher level, had tho effect of reducing indents to absolute necessities and was the cause of very considerable interchange of stocks between merchants. Hie importing community was very greatly relieved when the announcement was made recently by the Minister of Finance that the rate would continue on a basis of 10 per cent. Now that the exchange is in a more settled state, further indents are being placed, although tho general uncertainty regarding future taxation and the possibility of increases in the customs tariff are factors which are being given serious consideration. Prices Tend Downward.

During the past year methods of business have undergone a marked change. The speculative element has been eliminated from buying as far "as possible and the practice of forward buying has, to a certain extent, been discarded. A policy of buying from hand to mouth has sprung up and merchants arc keeping stocks down, aiming at turnover and a minimum outlay of capital. In older to keep pace with reductions in spending power, the general movements in pr;ces have continued downward. Although there are indications that some commodities have reached bed-rock level, certain lines are inclined to show a further falling tendency. Many staple lines are down to pre-war level in the exporting countries, but high costs prevent the full benefit of the fall being passed on to lite consuming public in New Zealand. Manifests of vessels trading to the port of Auckland have registered the chancing methods of doing business. Imports have tended to be made in substantially smaller parcels and at more frequent, intervals, buyers preferring to risk ; tinning short rather than have unnecessary capital tied up at any time. There has been a falling off in imports this month, due in a large measure to the anxiety of merchants to keep stocks sfiort for the stocktaking at the end of March. Conditions have been further influenced by the fact that the banks hold their halfyearly balances at the end of the month. Fewer Luxuries Bought.

An outstanding feature of recent months has been the disappearance from the market of what are termed "luxury" lines, especially in the way of imported foodstuffs. As most of these lines are heavily taxed, the pricn to the consumer does riot really , represent the food vidua of the product. It is true in general that people now cannot afford to give unchecked rein to fancies in food and the result is the disappearance of fancy and a demand for staple lines. Perhaps the chief factor in present-day buying is price consideration and second-quality lines are sought in preference to the better-quality, more highly-pifced articles. This policy has been brought about by the demands of retailers, who have found that the public pays more attention to price than formerly, a practice which has also given rise to widespread price cutting in some trades. The orders booked in New Zealand for the Australian dried-fruit crop furnished an example of this demand for general average quality goods. Last year onecrown sultanas were not quoted on the New Zealand market, but this year prices were forthcoming and, as they represented the cheapest line, merchants found that their customers showed a strong demand for them. The result was that, within a week of prices for the crop being announced, the price for one-crown sultanas was withdrawn. At present merchants do not know whether Ibe orders they have booked will be confirmed and no definite advice is forthcoming from the Fruit Control Board in Australia. The Produce Market.

Prices for seed, grain and produce are down to pre-war levels, but recently there has been a firming tendency on the produce market, due to a shortage in somo directions. Potatoes and onions are in fairly heavy supply and it is not expected that any difficulty will bo experienced in ordering. However, most grains are in short supply, some of the Southern crops being not up to expectation. Although an acute shortage is not being experienced- at present, somo fears are felt for the future. The position is not helped by the recently-announced decision of tho Agriculture Department not to issue further permits for importations of grain from New South Wales, owing to the prevalence of cattle tick in some areas there.

Business in Auckland immediately prior to the Easter holidays showed a comparatively healthy tone, although there was not a very heavy turnover. The peculiarly Easter business is inclined to be quieter, but, owing to the delivery of orders for next month's accounts having to be made merchants experienced a busy week.

WHEAT AND FLOUR. EXPORTS FROM AUSTRALIA. Dining 1110 period December Ito Match 1.0, :i total of 49,769,000 bushels of wheat nut! 189,280 tons of flour were shipped from Australian ports. The shipments from each of the exporting States are shown in the following table:— Wheat, Flour. As wheat, Bushels. Toils. Bushels. X.S.W. , . 15.UH2.000 03,170 18.3 M.OOO Victoria . . 9,284,000 64,690 12.389.000 South Australia 11,227,000 29,300 12,634.000 West.. Australia 13,926,000 32,120 15,468,000 49,769,000 189,280 58,855,000 Wheat stock in New South Wales Government grain elevators on March 17 aggregated 15,184,000 bushels, consisting of 11,397,000 bushels in country silos, 28. r ).oon bushels in transit, and 3.5b2,000 bushels in the Sydney terminal elevator. Similar stocks a year • ago totalled 17,144,000 bushels, and 8,706,000 bushels two years ago. Discussing the opening of the wheatgrowing season, Mr. 11, C. Sterling, chief agriculture instructor for New South Wales, stated recently that the recent rains which had been registered throughout the wheat belt had provided excellent conditions for the opening of the season. While there appeared to be a larger proportion of fallow than, last year in the more western districts, the extent of land fallowed in eastern wheat areas was appreciably less than normal, owing to the short, period during which the land was in a satisfactory condition for ploughing. This was due to tho water-logged condition of the soil during winter ami to the land rapidly becoming dry and hard in the spring.