THE COST OF LIVING

Otago Daily Times, Issue 17503, 20 December 1918, Page 5

THE COST OF LIVING

PROSPECTS OF DECREASE REMOTE.

REASONS WHY HIGH PRICES WILL RULE.

(Fbom Orjß Own Cobbesfondent.) AUCKLAND, December 19. From information obtained in interviews hero with merchants thcro docs not appear to bq a. prospect of tlio cost of living decreasing in tlio near future. On tho contrary, so far as tho textile, trade is concerned, thero is expectation that prices will appreciably increaso during- tho next 12 months. In regard to tho decreaso Li freight rates, tlio reduction of 25 per cent, in many cases means quite a negligible reduction in tho cost of goods, especially in those of higher value. A ton of goods iu many cases is valued at £100 or more. Thus, with freight at £10 per ton, ft reduction of 25 per cent, moans only £2 10s on the £100, or 6d in tho £1. As a matter of fact private advieo has been received that the ruling freight rates will bo charged on all cargoes now on the water or being loaded. Tho new rates will operate on shipments by tho next vessels to bo placed on tho British loading berths. Every advice received by softgoods traders points to tho fact that the prices of certain goods aro on tho increase, and the present, cost of manufactured articles will bo very largely exceeded during tho next 12 months The following reasons are given:—The cotton crop, estimated at first to show a large surplus, has now proved to be the lowest on record. The stocks of raw cotton held in England are very small, wages continue very high/ and considerable labour disturbances aro anticipated, while an enormous demand exists for manufactured goods in all parts of tho world. A number of specially-advertised brands of textile goods have risen practically 100 per cent. It is stated _ thar thft prices are controlled by firms in England, and Now Zealand firms buy and sell at certain fixed standar.cls of value. _ In regard to woollen goods, the probability of a reduction in retail prices seems equally remote. In England current prices for raw wool aro still very much below market prices in South America and other neutral countries. This is stated to be because tho Imperial Government requisitioned the New Zealand wool clip at a fixed price, and had to purchase wool grown in other countries over which Great Britain had no control at tho best possible price. It was not anticipated that the. disparity in prices of wool grown within tho British Empire and neutral countries would continue to rule after the close of hostilities If South American prices are not brought down tho price of other wools, including those grown within the Empire, will have to bo advanced , in order to roach parity. As the demand for wool is not likely to decrease for a considerable time, on account of tho shci'tago of stocks, both of raw material and manufactured goods, no decrease in the cost of manufactured articles is anticipated. On the other hand, a further increase is stated to be likely. Cabled advieo has been received in Auckland that the prices of crockery and chinawa.ro manufactured by larjj© English firms are to ,be increased forthwith by from 120 to 130 per cent. The reasons for the increases aro stated to bo that there' is a great scarcity, of raw material, coal is much higher in price, skilled labour is scarce, and inexperienced labour has had to bo employed.