TRADE IN CHRISTCHURCH

Otago Daily Times, Issue 17973, 28 June 1920, Page 3

TRADE IN CHRISTCHURCH

AN ERA OF PROSPERITY. (Fbom Oob Own Cohkeseondents.) CHRISTCHTTROH, June 25. "At the end of the most prosperous year many of them have ever experienced, Ohristohurch business firms," says the Star, "are beginning to balance up to see how things stand, /i'he results in some cases are rowarkahie. Rough estimates show that the volume of trade handled will top anything previously recorded. In spite of high prices, the demand in every line has risen steadily month by month. Bad debts are scarce, and prompt settlement seems to be tho rule." "We, have never handled so much money for years," said the manager of a largo business house. "Our turnover this year will be a rocord. People ore getting better prices for their goods and labour, and the result is improved trade all round. Perhaps the land transactions of the last 12 months have something to do with it. I expect a few speculators will burn their fingers sooner or later, but that won't mean any great tightening up. Tho world is hungry, and* Now Zealand has the goods. There's nothing to frighten me in our book debts. Our clients, big and email, pay up promptly when the bills go out. There is less grumbling and less delay than before the war, and • bad marks are fairly scarce too." The head of a. general drapery house which does praotically all its business on a oash -basis had the same story to telL "There is no rush just now," ho said, "but trade is steady. During the Prince's visit customers simply swarmed in, and I suppose the majority are fully suited for a month or two. A remarkable feature these days is that people of all sorts are keener than ever they were before on good quality. They don't pay the same attention to price as in pre-war days. Another point is that the best materials do not require expert salesmanship. The people have the money in their pockets, and they are out to buy, and they know what they want." An interesting sidelight on the situation was afforded by the manager of a. boot shop, who produced his books, showing that during the. last three years there has been an increasing tendency to pay cash. In 1914 three-quarters of the sales made went through the books. In 1915-16 the beginning of the change was distinctly evident, and in 1917-18 the sales under the two headings, cash and account, were level. In 1918-19 there was an excess of cash sales, and this year the excess would be more pronounoed. Now about 75 per cent, of the business was cash, and yet there had never been any suggestion of a hint to customers that "money on the nail" was acceptable. February and Maroh had been the busiest months experienced. June was proving on the quiet side. "Perhaps the people are retrenching a bit," said the boot man, "but don't mistake that for a dump. I do not expect any decrease in the price of better quality boots for mr-oy months, though I heard to-day that cheaper material has dropped. Chrome is said to be down 2d per pound, and factory sole leather 3d per pound. • Against that will have to go the recent increases in. wages, so who gains?" Trying to gauge the money market, a commercial man 6aid that the present was a particularly interesting and even an anxious time. Practically all the money advanced by the Government" to ex-soldiers in the way of loans, advances, and gratuities had been disposed of. Farmers and city pro-perty-holders had handled a lot of money during the last year or two. _ Now they had invested again, and were sitting back. What looked like a /boom time was over. The problem was what would happen within the next month or two. Retrenchment was inevitable. There were signs that it had already started. Would that hove any effect on prices? Would betailers and wholesalers be left with surplus stocks? What was going to become of tho vast army of agents that had sprung up all over the country? There was one thing w© could all feel satisfied about: New Zealand industrially was at peace, and if that kept up we could carry on with confidence.