WHOLESALE PRICES

New Zealand Herald, Volume LXXIII, Issue 22543, 7 October 1936, Page 9

WHOLESALE PRICES

SHARP RISE IN BRITAIN NEW RECORD HIGH LEVEL FEARS FOR COST OF LIVING Expanding trade and tho American drought were responsible for carrying British wholesale prices to a new high record level since the early days of tho depression. The genuineness of the trade revival is shown by the Financial Times index number for August, which is 107.8 (1935 = 100). Taking 1931, the lowest point in the depression, as the base, tho index number is 110.6. This is the first time since December, 1930, that the index number has risen above its 1913 level. In Great Britain the most striking movements have been in food prices. Compared with -luly, the cereal group has risen by 12.8 per cent, while food generally has risen by 4.1 per cent. Paw materials have been very firm, with the exception of cotton, which has reacted after its sharp July advance, but the remaining raw material groups have in no case risen by more than 2 per cent. The true comment here is that activo trade, rearmament and tho gradual absorption of surplus stocks have enabled tho previous price increases to bo maintained.

Out of the 21 food prices used in theso calculations there were 1!) increases, including six of over 10 per cent. Baw material movements were less spectacular. There were 21 price increases, 110110 of which exceeded 10 per cent. Taking all the 7o price quotations together, there were 40 increases, including six of over 10 per cent. Twenty-five items were unchanged, and there were only 10 decreases, ono in excess of 10 per cent. Tho Financial Times states that the main danger is that of an advance in costs. Hitherto the increase in the cost of living has been moderate, but the official index for tho end of August will no doubt reflect tho August rise in wholesale food prices. If this increase is maintained, it will in time begin to react upon wages, which have already risen during tho past 12 months. For these reasons it is to be hoped that there Avill be some further slight recession in food prices, for it has yet to lie proved if the trade recovery has gono far enough to stand a serious increase in production costs. SYDNEY WOOL SALES MARKET VERY FIRM INCREASED COMPETITION (Received October G, 10.25 p.m.) SYDNEY, Oct. 0 At tho Sydney wool sales to-day 11,933 bales were offered and 10,461 were sold. Also 122" bales were sold privately. There was a very firm market. All the best features of last week's auctions were again in evidence, with strong support from Yorkshire and increased Continental competition. Greasy Merino sold to 213 d.

Tho average prico of wool sold in Sydney last week was £l7 4s lid a bale, or 13.1 d a lb.

PRICES OF METALS A FIRMER TENDENCY (Received October 6, 7.35 p.m.) LONDON, Oct. 5 Following are to-day's quotations on the London metal market, compared with those of October 1: Oct. 5 Oct. 1 Per ton Per ton r,.£s d £ s d ( opper, star., spot 31) 15 7Y 3 30 1-1 4>/ a Copper, stan.,' 3 months .. 30 1(5 10'/ 3 30 15 7Y a Copper, electrolytic 41 0 0 <l3 15 0 to to 41 10 0 41 5 0 Copper, elec., wire bars « . . .. 41 10 0 4 1 5 0 Lead, soft, spot .. 18 (i 3 18 3 <) Lead, soft, forward 18 5 () is •> a Spelter, spot .. 13 18 0 13 17 (i Spelter, forward .. 11 5 0 I t 3 S) Tin, stan., spot 202 17 (i 202 7 G Tin, stun., 3 mos. 100 17 G 10'J 2 G

TALLOW MARKET STEADY EXCHANGE INFLUENCES The Department of Agriculture has received the following cablegram, dated October 3, from the High Commissioner for New Zealand, London;— Tallow. —The market is quiet but steady at about last quotations. Hemp.—Manila: All markets are quiet on exchange developments. "K" grade for October-December shipment sold at £26. Sisal: Nominal value for October-December and NovemberJanuary shipments, £26 10s. New Zealand: Tho market is nominally unchanged. Eggs.—Tho market is steady, with a fair demand. English supplies arc small. Prices are: —English, national pack, 16s 6d to 19s 6d; English, ordinary pack, 16s 3d to 16s Gd; Danish, 12s to 13s Dd; Australian, 10s 9d to 12s 6d. Apples.—There is a fair demand for imported, but offerings are small. Tho bulk of recent arrivals lack colour. Prices are:—Caiifornian Newtown, 12s 6d to 13s 6d; Jonathan, lis to 13s Gd.

Pears.—-There is a fair demand. Until the last few days prices were inclined to be easier. Prices are: —Caiifornian Cornice, 15s to 18s; Ueurrc Pose, 12s to 13s; Winter Nelis, lis to l is (3d.

Peas.—ln maples fair business was done at the beginning of last month. No. 1 New Zealand for OctoberNovember shipment, £2 10s to £2 17s; September-November shipments, on samples, according to quality, £2 Ss to £2 16s. ".A" grade Tasmania for October-November shipment sold £2 17s 6d to £2 ISs. The present demand is quiet. In blues the market is dull. "A" grade Tasmania for OctoberNovember shipment sold £l2. Japanese declined £.' i; Dutch, 10s to £2, according to quality. Casein.—The market is steady; about unchanged for New Zealand and Argentine. The French outlook affects exchange situations. Current values are:—Casein, New Zealand, £;S3 to £4B; lactic casein, French, £4B to £SO; Argentine, £SO. SALE OF SECTIONS TUAKAU TOWN BOARD [FROM OUll OWN COnnKSrOXDENT] TUAKAU, Tuesday . The sum of £340 realised from the sale of sections on the Town Hall property at Tuakau is to bo applied by the Tuakau Town Board toward the cost of subdividing the land and of making various improvements to the property. This decision was made at the monthly meeting of the board last evening, and is subject to the consent of the Loans Board. The chairman, Mr. G. Arrow-smith, stated that.the money would ordinarily have been applied to the reduction of the loan out of which the property was purchased. This loan, however, was now merged in the consolidated conversion loan, and the £.'310 could properly only bo applied toward shorten- j ing tho term of the loan. No immediate benefit would be received by rate- | payers if the money wece to be used for this purpose. J