PRICES OF IMPORTED GOODS WILL FALL.

Oamaru Mail, Volume XLIV, Issue 14706, 5 June 1920, Page 6

PRICES OF IMPORTED GOODS WILL FALL.

An optimistic review of the prospects of prices of imported goods is not- held by tome Auckland people who are in business. "It is not to. our advantage to have high prices," said a warehouseman manager, "but people who really are in business know that certain prices are really going up." He backed up his opinion with a few figures, v." hi eh certainly do not suggest that in an important line of Manchester go-cds the optimistic have much ground for cheerfulness. These facts and figures, referred to by the manager, related to two actual orders. The'first was .given in the beginning of February, the price then being Is (id per yard. This order was confirmed by cable about two weeks later at' 5s Pd per yard. The price of the same article to-day is lis 4d per yard. In the other instance the order 'price was 2s 2d per yard, it was confirmed at 2s lOd, and to-day's quotation is 3s 9d per yard. Even where " there had been a drop in prices that might be called sensational, as in the caso of some Japanese lines, tho manager in question pointed out that the public should not lie misled. When high prices and an adverse rate of exchange affected a staple industry like l silk, on the trade of Japan, somethinghad to break. Last month prices of Japanese silk dropped heavily, but thev were still 100 per cent-, over the normal prices at which people have been buying. The cotton industry in Japan had also dropped. In a way it was sensational, but- it should be explainedHhat prices were so high that no one could possibly do business at such figures. "There is nothing surer than that i)rices will come back here.before long; indications already manifest this," said a Cliristchurch merchant to the. Sun. "There has undoubtedly been too much gambling in stocks, and the attitude the banks have taken up will soon affect this." He went- on to say that during the past few years of prosperity. numbers of men started ill business, largely as brokers, who had not the necessary training or financial backing. The attitude of the banks at that time allowed these men to gamble, and the cost of goods to the consumer was thus added to. He gave an instance of one - mail who had just contracted to buy Japanese, goods through Australia. These goods had passed through several hands, and the New Zealand speculator, so far, has neen unable to place them here. Unless he succeeds—and ruling prices are against him'—he will probably go under. That the trade is beginning to recognise that a dangerous position lies ahead is borne out by the fact that many firms, his own included, are keeping their stocks as low as possible. If this tendency is general in other importing countries, the resulting slackening of orders will be a big factor in the reduction of prices. For, once orders begin to slacken off, manufacturers abroad will begin to get alarmed.