ECONOMICS OF RECONSTRUC TION

Otago Daily Times, Issue 17712, 25 August 1919, Page 6

ECONOMICS OF RECONSTRUC TION

REVERTING TO NORMAL,.

HITCHES IN FOOD SUPPLY,

PROFITEERING IN WOOLLENS.

a-'aOM OUB OWM VOHS£SPOiSDEiiT.)

a - LONDON, July L bir Arthur Goldfinch ol Kart -\ saya the Uovenuneut has amply u. illwl its snare ol tho duty of providing abundant suppaes. There never had buell such a large stock oi wool in the country as at preset, and ho believed it to be tiuo not omy oi W ool in built, but of every grauo oi wooi. ihrough conditions tor whicii tho trade, employes, and operatives between them musi buar tho whoiu responsibility a, largo increase in supplies of combing wool was being accompanied by a steady reduction m the suppues of tops, Handicapping Uio worsted industry, labour representatives on tiio council pointed out that although wool supplies wero much more than sulhcient, extraordinarily large prices were tjoiiig higher and higher a* stocto became larger and larger. Kverv section of the trade disclaimed profiteering for themselves, but, tho consumer knew that there must bo profiteering somewhere it cheap and abundaiit wool went together with dear goods. Mr Whitehead said that jumpers or sports coats, priced in London shops at rates varying between three guineas and seven guineas contained at the. utmost 15s worth of yarn.' bomothing similar applied to gentlemen's suits u.t l<2 or 14 guineas. THE DRAPERS' SHARE.

The statement that throughout tho war tho drapery trade enjoyed exceptional prosperity is provided by a study of last year's trading Ugures ol the loading provincial retail drapery companies. Taking 15 of the biggest concerns carrying on business in all parts of tho country, the figures show that o\ e o c r P , roUts in tho a £Sri-'gat e amount to i\a compared with £136,164 in 1914, which for trade purposes may be regarded as practicidly a normal year, an increase of no less than £189,565. Some of tho concerns have doubled their profits, several trebled them. Dividends to shareholders are higher in 13 cases out of 15. Dickson and Benson, Middlesbrough, pay 12£, ae compared with 6 per cent.; Hill, Carter, and Co., and Piummer, Koddie, and Co., 10 per cent, as against 5; and Wright and Co., Middlesbrough, 11 per cent instead o. 5. Tha same rate of progress has been made by tho London drapery houses. Seven of the largest record profits in, the aggregate" of £3,466,979 last year, as against only £1,200,576 in 1914, or an increase of £2,266,403.

Mr L. J. Martin, of the Minorics v?ho 1-as cornered tho linen market by purchasing for £4,000,<XX) surplus aeroplane stocks which cost tha country £6,000,000 is a speculator pure and simple. Hβ says ho does not know linen from cotton. Several otters had been received by the department when Mr Martin unexpectedly put in his offer, and after a few days' negotiation it was accepted. The linen was made to cover the wings of fighting aeroplanes, and is both light and strong. There are 16 varieties, md the widths vary from 25 to 72 inches. The fabric can be used for clothing, household linon. handkerchiefs, etc. I jxo finer linen has ever been produced, ihe deal lepresents three /years' normal supply, and will bo much in demand bv tho markets of the world, which at present aro denuded. Mr Martin intends that, as far as possible the British public shall have all the linen it requires at prices under those at which Belfast can now manufacture, and the balance of his goods will be i sold to our Allies and in neutral markets. Mr Martin is an active man, looking younger than his 37 years, and with a quick, decisive manner of conversation. ''1 am the son of a Truro outfitter, , he said, "and started making money when I was 18 years -if age. I really had less than a couple of hundred pounds to begin with." CONTROL TO REMAIN. Three important announcements vrere made by the Food Ministry lost night. Tho price of milk is to be increased. Registration for meat, sugar, and butter is to continue. Veal is again to be controlled, o.nd maximum prises have been reunposed. Owing to tiio increase in the cost ot production of milk brought about by , the prolonged drought the Food Controller has decided to increase by 4d per gallon during July the maximum price, and Wales will be correspondingly increased next; month. The necessary amendments of the Milk (summer prices Order, 1919, will be issued at an early date. As a result of the drought, too, there is a danger of tha amount of meat available for consumption being restricted, and it lias been decided that registration cf customers with retailers for butchers' meat, which it had been hoped to discontinue on June 30, must continue. Registration for sugar and butter will also continue. On May 31 the Food Controller -.evoked the Orders which controlled the sale of calves and fixed maximum prices for voaL The result has been a sudden and excessive rise in the price of meat. The wholesale price of veal, for example, rose from 7s per stone of 81b to approximately 16s per stone, wliile the retail prices rose by at least 100 per onnt. In consequence calves which ought to liavo been kep.t for rearing have been sold in large quantitios for slaughter. The Food Controller has, aiter very oareful consideration, re-imposed maximum retail prices for veal. WOMEN'S IMPROVED STATUS. The general improvement which has taken place in the pay of female labour was described by Mrs W. J. Barton at a meeting of the Royal Statistical Society. Slio said that as a result of the marked improvement in women's status, organisation, and skill during the- last five years, there were good grounds for hoping that a permanently higher wage level would bo gradually reached. In the case of domestic servants the rises ranged from 7 per cent, for ladies' maids to 70 per cent, for general servants. Wages in the textile trades, which, had increased by 23 per cent, between 1886 and- 1906, rose during the war until at the end of 1918 they exceeded prewar rates by 110 per cent, in cotton, 105 per cent, in woollen and ■worsted, and 54 per cent, in hosiery. Shop assistants' wages had not apparently advaned in the 20 veafs before 1914. In London the salaries of drapery assistants ranged from £30 to £50 a year; in the provinces they were lower. During the war there had been a rise which was estimated at from 25 per cent, to 50 per cent., but wa-tres were in some cases extremely inadequate. DEARER CLOTHING.

While the public are wondering when clothing prices will decline, values are steadily hardening, especially in regard to woollen goods. On the strength of the rates obtained at the resumed wool auction sales, cloth manufacturers have advanced their quotations by about 15 per cent, since last March, and it is on the basis of thsso extremely high prices that manufacturers of the made-up garments have been compelled to cover their requirements. With labour charges aleo tending upward once more, it is difficult to say when woollen apparel will become cheaper, certainly not before the middle of next year if then The solution of the problem of dear olothing is for the public to content itself with lower quality materials than are now in such heavy demand. The long spell of hot weatlwr has given a decided fillip to retail drapery business, and trade contmnea very brisk. Retailers' stocks of summor materials have Iwen greatly depleted* and repeat orders coming through to the warehouses are substantial m bulk. Tnere is little improvement in the output of tho felt hat. factories, and the prospects of men's head-wear coming forward are now less hopeful because of the seasonal demand for th 6 more romun-orative felts for women's wear having commenced. OUT-OF-WORK PAY.

The Daily Telegraph says a considerable diminution has occurred in tho number of people drawing out-of-work donation. Towards the end of May the total' was. roughly, 850,000; at tho close of the first week in June it had fallen to 710.800 This wolcomo decline is attributed to two causes (1) An undoubted increase in tho amount of s employment available all over the country (2) Tho strict review now undertaken of all policies, is-eued and the investigations conductedby the courts of referee* The following table shows some of tho decreases m the numbers receiving out-of-work pay during tho last fortnight:—Buildup works ■ construction, 9000; i&ipbuildW, 2000; engineering and ironfounding Iβ 000 • SP ° rt , work ? rs ' , ".OK): commercial,' 7000: workers m dress, 6000; domestic offices and service. 19 : 000; general labourers and factory woncors, 16,000.