MOUNTING COSTS

New Zealand Herald, Volume LXXV, Issue 22936, 14 January 1938, Page 5

MOUNTING COSTS

AMERICAN CONDITIONS FACTORS IN RECESSION RISING TAX BURDEN Since the beginning of the business recession in the United States about three months ago, a great deal of consideration has been given to the possible causes of the setback. One factor tha't is frequently mentioned is the increasing cost of carrying on business. The misgiving with which business men regard this prospect partly explains their hesitancy in making forward commitments. The rise in business costs has also had' its effect on retail prices of consumers' goods, and it is significant in this connection that President Roosevelt has asked the Federal Trade Commission to inquire into the causes underlying the advance in the cost of living. i "It is clear that one of the principal causes of this actual and prospective increase in costs is the rising tax burden," states the Guaranty Trust Survey. "The seriousness of the problem is shown by the President's message to Congress, in which emphasis is placed on the need of encouraging productive enterprise, particularly by tax reform, and on the prospect of a balanced Budget for the coming fiscal year. "An examination of almost any corporation's comparative income statement for recent years shows the serious extent to which the cost of Government has become a direct offsetting factor in earnings. But the real burden of Government costs on any given concern cannot be judged by such figures alone, since a large part of the total tax load is indirect, and its real incidence is diffused throughout the economic system.. ' "As far as the tax aspects of the problem are concerned, the remedy is twofold. It consists, first, in the repeal or amendment of the uneconomic tax laws that are seriously affecting business; and, second, in a reduction of Government expenditures that will permit a balanced Budget without excessive taxation. "Fortunately, there are-signs that some of these requirements are gaining recognition in official quarters. President Eoosevelt has placed increasing emphasis in his recent public statements on the need of balancing the Budget. Ho has also advocated low prices for the products of industry as ,a means of stimulating demand, a position that has been taken by many economic authorities for some time, and that stands out in rather marked contrast to the earlier emphasis in political circles on the need of raising price levels." THE MARKET BASKET VEGETABLES AND FRUIT SEVERAL LINES FINISHED Only the retail rates for vegetables and fruit have shown any change over the past week and several lines have gone off the market. Sturmer, Tasma and Delicious apples have finished and Catladian apples are almost over, while lemons are dear at Is 6'd to- 2s 6d a dozen. The season for local grapefruit and strawberries lias almost finished, while red currants and Califomian grapes are not obtainable. In the vegetable market kumara and onions have decreased in price and pumpkin and lettuces may be bought at slightly lower rates. Broad beans are off the market, however, and cabbages are scarce. Values are: — FRUIT Apples, Canadian. 2s to 2s 6d a dozen; oranges, Australian Valencias, Is 6d to 3s; Jamaican, 2s to 3s; Califomian, Sunkist,, 2s Od to 3a; lemons, Is 6d to 2a (id; bananas, 4d and 5d per lb; grapefruit, Sunkist, (id; local, 2s a dozen; coconuts, 4d to 6d each; fineapplcs. Queensland variety. 2s to 2s 6d; sland variety. Is tcls (3d: mushrooms, cultivated, 3s (id to 4s 6d; hothouse tomatoes, 8d per lb; outdoor tomatoes, 4d to Od; second grade, 3d; strawberries. Captain Cooks. Is t)d to 2s fid; Marguerite, Is Od; local plums, 4d to, 8d per lb; apricots, lOd to 1b; poaches, Is 6d to 3s a dozen; Grenadillas, 9d to Is 3d; paw-paws, Is to 2s; cherries, 2s to 3s per lb; raspberries, Is 2d per lb; black currants, Is 4d; hothouse grapes. 2s Od to 3s per lb. VEGETABLES Kuinaras and onions, slb, Is; rhubarb, 4d to Od a bunch; radish, spring onions, ud; cabbages, 4d to tid; lettuce, 3d and 4d; silver beet, 3d per bunch; pumpkins. 3d per lb; potatoes, 2d; outdoor beans, 4d and 5d per lb; carrots, 2d to 3d a bunch; parsnips, 3d a bunch, peas, 4d to Od; hothouse cucumbers, 4d to Oa each; outdoor, 2d to 4d; beet, 2d pfer bunch; spring marrows, 4d to Bd. MEAT - Beef.—Bump steak, Is 4di undercut, Is Od; beef steak, 8d; sirloin, lOd; prime ribs, 8d; prime ribs (boned and tolled), lOd; wing ribs (three chine bones), Od; topside (4lb and over), 7d; bolars, 7d; chuck rib, sd; rolled back rib, 8d; cormsd round, Od; corned brisket (boned), lid: brisket and flat rib. 4d; thin flank, 3d; gravy beef, or shin beef, 6d; ininced beef, (3d; tripe, 6d; dripping, Od; suet, 4d; sausages. 4d; sausage moat, sd; whole shins or legs, 2d; half shins or legs (thick end), 2%d; half shins or legs (knuckle end), 2d; , ox kidneys, 1:5; ox tongues, lOd; ox tails, Od; whole lointi, Od; whole rumps, lOd. Mutton.—Sides, 7d: whole legs, Od; cut legs. oy a d; shank end ((31b or under), lOd; hiudquarter, 8d; forequarter, Od; Shoulder, 7d; shank end of forequarter, 0 1 / ad; necks (best end), 7d; necks (scrag, end), Od; loin, B'/ a d; middle loin chops, 3s; leg chops, lid; rib chops, lOd; neck chops (best end), 8d; stowing chops, Od: flaps, 3d; cutlots (trimmed), Js 2d; sheep's fry, 8d; kidneys 3d each: tongues 3d each; sheep's head (dressed), Od each; sheep's brains. 2d.' New Season Lamb. —Forequarter, lid per lb; hindquarter, Is 2d; legs, Is sd; loins, Is 2d; sides, Is; lamb chops. Is 4d. Veal.—Fillots, lid; loins, lOd; shoulder, 7d; cutlets and veal steak, Is Id; chops. Is; forequarter, Od; rolled veal, Od; veal rump stoak. Is 3d. ... Pork. —Leg, lid; loin, lid; foreloin, with blade, Od: pork chops. Is; corned hand, Od; corned belly, lid; pork sausages, Sd. FISH Schnappor and terckihi, whole, <}d per lb; fillets, lOd; smoked, l()d; skinned fillets, with wings, lid;, without wings. Is; steaks, 8d; tereklhi, kippered fillets, Is 3d; trevalti, whole, 7d each; smoked, 8a; smoked fillets, 4d and sd; John Dory, fillets. Is 2d; mullet, whole, Kaipara, 5d each; Auckland, 7d per lb; smoked, Kaipara. Od each; Auckland, l()d per lb; flounder. Is per lb; lemon fish, 5d per lb; silver strip, Od per lb; hapuku steaks,. Is 2d per lb; smoked. Is 3d; moki, steaks, 8d per lb: smoked, fid per lb; kingfish, steaks, 8d per lb; smoked, Od; salmon, Is 3d por lb; smoked, Is 4d per lb; cod. fresh, Od per lb; smoked, Is 3d; gurnard, whole, 2d; fillets, l%d each; smoked, Sd; barracouta, whole, sd; fillets. Od per lb; smoked, Sd; cream fish, l%d each; frostfish, 6d per lb; bake, whole, Od per lb: smoked 8d; kippors, Scotch. Is per pair; crayfish, Od per lb; smoked ftchnapper roes, 2s fld per lb; fresh schnapper roes, 2s; smoked hapuku, Is 3d; mussels, fresh., 18 fld a dozen; rabbits. lOd each; cod fillets, Scotch, Is Od per lb; smoked bloaters, three for Is; giblets, 8d per lb; mutton birds, lOd. BACON AND HAM Bacon.—Shoulder rasliers, Is 3d per lb;; rib rashers. Is Odr by piece, shoulder cut, lOd to Is 2d. Hams: Rashers, Is 7d; pieces, Is (id; whole hams, ]>s 4d; half-hams. Is Gd. BUTTER AND CHEESE Butter. —Factory, first grade, Is 4%d per lb; second grade, Is 4d; farm butter, Is Id per lb. Cheese: Mild, Is; tasty, Is Od. EGGS Hen, A grade, Is 8d; B grade, Is 7d; duck, A grade, is 7d. WHEAT CROP ESTIMATES CANTERBURY AND OTAGO [BY TELEGRAPH —PRESS ASSOCIATION] , , CHRISTCHURCH, Thursday From estimates received by the Wheat Committee, the yields in North and Mid-Canterbury this season appear to be better than anticipated, although South Canterbury and North Otago crops are definitely smaller. Recent rains have filled out the crops, and a better yield is anticipated. , -