GOOD PRICES

New Zealand Herald, Volume LXXIV, Issue 22657, 19 February 1937, Page 13

GOOD PRICES

dominion exports SPENDING ON ARMAMENTS EFFECTS OF BRITISH POLICY RISES IN METAL GOODS While business men consider that the huge armament policy of the British Government, which may involve the spending of £1,500,000,000 over five years should mean good prices over the period for New Zealand's exported jneat, wool and dairy produce because of the high standard of living that will rule in England through the | impetus to industry, it is pointed out that the Dominion will pay high prices for many classes of British exports. * "It seems to me that the fact that the British Government intends spending £300,000,000 a year for five years on armaments and munitions is going to solidify our export markets very considerably," said Mr. A. A. Ross, president of the Auckland Chamber of Commerce. "It certainly appears that we can reasonably expect good prices over the period for wool, meat and dairy produce because of tho improvement to bo expected in employment in Great Britain. Attitude of Importers " Of course, the international situation may alter in a way that will permit Great Britain to reduce her anna-' ment programme. We certainly do not want war, and the amount the British Government proposes to spend is so staggering that it suggests an attempt is being made to discourage other nations from big armament policies." Mr. Ross did not think there were many classes of raw materials in New Zealand that would improve in price because they were directly required for munitions. Other business men adopted the same views as Sir. Ross. It was pointed out that Britain's five-year plan should ensure a continuance of New Zealand's prosperity over the period. There had been a feeling before the announcement that tho munitions programme would be continued over five years that some of the brightness in British industry would rather wane after two or three years, because there was little doubt that som<> of the prosperity was due to the huge housing programme, which could not be indefinitely sustained, and the increased spending on munitions. For that reason, many importing firms, mindful of the lesson of the depression, had decided to watch their buying very carefully to ensure that stocks were not piled up unduly high in the danger period. However, it looked as if there need be no big anxieties in this respect for some time now. Advances in Building Materials While Great Britain's prosperity has contributed to an increase in the prices of many of her manufactures, the advances in industries directly concerned in the manufacture of munitions has in many instances been remarkable. The hardware and allied trades afford a striking illustration in this respect. Practically every mail brings advices of higher quotations. The building and associated trades have been particularly affected. In the past few days, a further advance in a close series has been announced for galvanised plain and corrugated sheet iron of 30s a ton, this bringing price increases in six months to over 25 per cent of the present price of £34 10s a tori to builders. A week ago black sheet iron • went up £2 a ton, the increase in the past six months being 17J per cent. British manufacturers now announce that they will no longer accept orders for galvanised black sheet iron with guaranteed periods of delivery. Yesterday British fencing wire was increased 25s a ton. This immediately caused an advance in staples of 10s a ton. The Australian Market Whether there will be a in nails which are manufactured in New Zealand from imported wire may depend on the attitude of the Australian market for wire, for much wire used in the Dominion comes from across the Tasman. Such wire with other imported Australian iron will now be subject, of course, to the announced rise of 10 per cent in inter-colonial shipping freights. Rises in pig lead in the past six months total 50 per cent, while in the same period white lead has been advanced in price by 20 per cent. Copper and other building materials have also been subject to steady price increases. "With Great Britain concentrating in renewed and stronger fashion than ever on munitions, we can expect that the present firming trend for metal goods and the difficulty in obtaining supplies of many classes will continue, ' said one importer. "No doubt we can expect good prices for our own exported products, but what we gain on the swings we are to some extent going to lose on the roundabouts."