FALLING VALUES

New Zealand Times, Volume LIII, Issue 12464, 4 June 1926, Page 2

FALLING VALUES

AND GOLD STANDARD WHAT IT MEANS TO NEW ZEALAND MR W. D. HUNT’S VIEWS The year ended March- 31st, 1920, was, on the whole, “a year of steady falling values when these values are measured in pounds sterling.” Thus spoke the chairman of directors of Messrs Wright, Stephenson and Co., Mr W. D. Hunt, at tho company’s annual meeting, and he went on to say: “I think there can be little doubt that this fail in values measured in sterling has been brought about by the return of the British Empire, to the gold standard. This was a notable event in the financial and commercial history of the Empire, and the fact that this Empire could return to a gold standard and maintain it in sucl? a comparatively sl?ort time after the Great War is evidence of the Empire’s financial strength and stability that we should alj congratulate ourselves upon. It puts everything on a secure footing, and enables the future to be looked to with more confidence. “At the same time, it is seldom that anything worth while can be obtained without paying a price, and we have not got back to the gold standard without paying a price. That price has been a steady fall in the value of almost all commodities when measured in sterling. This fall in the general level of values measured in sterling has been apprpximately 134 per cent. Values, when measured in dollars, have not fallen at all. The dollar has been on a gold basis for some years. The pound sterling now exchanges with the dollar at its par value, whereas for some years since the war it has been at a Considerable discount. WOOL’S ENORMOUS FALL “While there has been a fall during the last twelve months in the general level of values, when measured in sterling, of approximately 13£ per cent, this fall lias not been uniformSome lines have fallen to a very much greater extent than others, and certain other lines, rubber being a con- , spicuous example, have risen very much in value, but when all things are taken together the general level bas fallen, as I have said, approximately 13£ per cent. In New Zealand the interests of our farmers and our export trade generally centre round the values of farm produce. In these, wool Jjas had an enormous fall. The season 1924-25 saw wool at the highest 1 level ever obtained for it in New Zealand. The fall that has taken place since, pleasured in price per pound, is the greatest fall jn the history of 1 wool, but notwithstanding this great fall the prices of 1924-25 were so high that wool is still selling at quite a reasonable price when compared with pre-war standards. “Mutton and lamb have also met with a heavy fall, and so have tallow and pelts- Our jvholfi industry has, in fact, suffered severely. Dairy produce, on the other hand, has maintained values well. Certainly a year ago, dairy produce was .on a lower level than all sheep products, and there has not been the same room for the fal that the sheep industry has met. Notwithstanding the fall in prices--wool, mutton, and lamb are still selling at quite reasonable figures. Certainly pelts and tallow are very low, but taking everything into account the outlook for the sheep industry is quite sound and healthy, and the same can bo said for dairy produce.’’