TRADE AND COMMERCE.

Otago Daily Times, Issue 20288, 22 December 1927, Page 8

TRADE AND COMMERCE.

REVIEW OF THE YEAR.

THE FINANCIAL BAROMETER.

DOMINION'S CREDIT HIGH.

Speaking generally it may be said that financial conditions have, during 1927, and especially during the last few months, shown an improved tone throughout the Dominion. New Zealand must very largely depend on its primary industries. The demand for wool has been consistently strong, and values have been well maintained. Despite the advent from tim 6 to time of such articles as artificial silk and artificial wool, there appears to be little or no danger of real wool being ousted or displaced. Wheatgrowing is reasonably profitable, and prices for our dairy produce, which suffered so severely as the result of the Dairy Produce Control Board’s price-fixing policy, are again on the upward grade. Although much remains to be done, it would appear that Great Britain has at last turned the corner and a decided improvement in trading conditions in the Homeland is apparent. Because of the fact that Great Britain is our best customer any such improvement must have a more or less marked effect upon financial and trading conditions in the Dominion. For some years past attention has been directed to th e fact that a position fraught with serious consequences was being brought about through the value of our imports so largely exceeding that of our exports. In this connection it is gratifying to report a general improvement, and it is confidently expected that at the close of the present financial year it will be found that we have a surplus of exports over imports. The increase in the bank deposit rates, which took place in May last, has had the effect the banks set out to secure, viz., an increase in bank deposits. For the quarter ended September 30 last the banking averages showed the considerable increase of £2,323,000 in fixed deposits, while advances mad e by the hanks were only £500,000 greater than at the corresponding 'date in 1926. It is th© banks’ contention that if they are to provide the funds for general trading operations they must have the money to do so, hence the reason to a large extent for the raising of the rates of interest on deposits, and with it as a natural sequence the increase in the overdraft rates. Local body loan issues still continue an attraction to many investors, and during the year a considerable sum in the aggregate has found its way into the coffers of such bodies. The man on the land is still finding it difficult to obtain finance, and even although the security is a first-rate one it is not rushed by the investor. The provisions made and being made by the Government to help the farmers to arrange mortgage finance have not yet been long enough in force to be of very material help. In the opinion of some who have financial dealings with farmers the Mortgages Extension Act was kept in force over long. There has been a fair amount of money available for investment, but it cannot be said to have been plentiful. The current interest rate for first mortgages on both town and country freeholds continues in Otago and Southland at 6 per cent., while further north per cent, is being asked and obtained as the current rate* Prior to th e Great War freehold farm securities were in favour for the investment of funds, but of late years many investors have shown a decided preference for town securities and Government and local body debentures. Nevertheless, it is found that there are many who recognise that as New Zealand is largely dependent on its primary products, money must be provided for farm finance, and who in consequence have continued to take up sound farm securities.

The advent of Lloyd’s into the Dominion’s insurance world hao been a feature of the year, and as a result of representations made by Lloyd’s, although not an insurance company, as the term is generally accepted, will by means of special legislation be placed on a business footing analagous to that of insurance companies. " Less Government in business ” is a cry that was recently raised and taken up generally throughout the Dominion. Many business men have individually and through their various trading and business associations demanded that there shall be less Government restrictions and interfer-

ence in business. Strong representations in this connection have been made to the Prime Minister, and our leaders in commerce are hopeful of some relief being afforded the business community. The adverse conditions of trade during the

past few years have caused more unemployment than has been the case for many years past, but with th e better prices prevailing for our dairy produce, and the fact that the number of immigrants com-

ing to the. country has been somewhat lessened, it is thought that the matter will right itself in a reasonable time.

In conclusion, it may be said that, with ■wool at prices which arc satisfactory and likely to remain so, with the prices of our meat and dairy produce showing an upward tendency, with imports lessened to an extent likely to leave us with an adequate surplus in favour of exports, with a fair amount of capital available for sound business enterprise and investment, which will be to some extent improved by the wool sale proceeds, and with the prospects of more settled labour conditions, both here and in Great Britain, due

PROSPECTS BRIGHTER FOR 1928.

in a large measure to the better understanding now being brought about between Capital and Labour, we may view the prospects for the coming year with reasonable optimism, and welcome 1928 as being likely to show an all-round improvement on its predecessor. Mr J. Sutherland Ross, president of the Manufacturers’ Federation of New Zealand, gave it as his opinion that the last few months had brought distinct signs of improvement in many directions. This he attributed to an acceleration in the buying power of the general public, a first result of the better prices obtained for the Dominion’s produce, "d the continued good prices for wool. He thought it reasonable to hope that the manufacturers of the Dominion as a whole would in due course feel the benefit if this improvement, especially as it coincides with a growing public sentiment in favour of supporting local industries, where quality and value arc equal to the imported article. He felt he was voicing tho genuine sentiments of the manufacturers as a body in expressing deep gratification at the more encouraging prospects of the man on the land, since the -terests of the farmer and the manufacturer were closely interwoven, and the prosperity of the one reacted favourably on the other.

MERCHANDISEThe wholesale grocery trade during the year has not been up to previous years m volume of trade. The decline hoe not been in any particular line. It is somewhat difficult to account for this. It can only be suggested that the reason for the smaller consumption is due to.the financial position. The principal alteration in the year has • been the reduction of sugar by varying amounts, the reductions in all totalling for the year. A remarkable feature of inis is that in Australia, which produces sufficient sugar for itself and a considerable amount for export, the housewife of Australia has to pay practically twice what me housewife of New Zealand has to pay, notwithstanding that -New Zealand is not a sugar-producing country. In dried fruits the importation of sultanas and currants that years ago was confined to Smyrna and Greece has now ceased, and New Zealand draws practically the whole of its supplies from Australia. Tinned fruits, which some years ago were imported from California, are now largely imported from Australia. An increasing quantity ot tinned fruits is being produced in the Do minion. The fact that a big Australian fruit preserving company now controls two of the principal fruit preserving concerns in New Zealand will probably mean that m the future the production of tinned fruit in New Zealand will increase. Starch is another line that is not used in anything like tho quantity that some years ago was demanded. Many articles of clothing are not to-day hardened with this commodity as they were formerly. Rice also shows a falling-off tendency Previous y, it wa» imported from India and China, but m recent years it has been produced in Australia in the rough state and from there imported into New Zealand. Australiangrown rice has now made its appearance on the New Zealand market, and after an examination of its quality experts say there is no reason why it should not bo equal to any rice grown in the East. The consumption of tea has been about the same as in previous years. Although there has been a rise in Ceylon tho price of me principal brands remains unchanged Money has been decidedly tight among merchants during the year. This is due to tho fact that retailers have had difficulty in getting in their cash from their numerous customers. By a section of tho public it is thought that, while this is due to financial stringency throughout New Zealand, the position is accentuated by the hiic-purona.-e systems which now extend not only to motor cars but to gramophones, wireless sets, etc., with the result that the ready money goes to those concerns instead of to the hutchcr_ the baker and the grocer.

THE GRAIN MARKET. The past season has been a disappointing one to the agricultural farmers of the Otago district. Before threshing commenced the indications pointed to good yields, but the unseasonable climatic conditions took their toll of tlie crops. Although straw was plentiful, the grain threshed out poorly in the' chief grain-growing districts.. Fortunately wheat prices were fairly remunerative and the farmers who sold for forward delivery averaged a good price. They, however, were not so fortunate as their Canterbury neighbours, who obtained the best yield recorded for a number of years. At the opening of the season, when the Canterbury crops were turning out exceptionally well, it was thought there would be sufficient wheat for New Zealand requirements. The heavy offering? then broke the market, and recovery did not take place until it was apparent that the higher yields in North Otago and south thereof counter acted the surplus in the north. The importations of Australian flour also lessened the demand for New Zealand wheat for gristing. The quantity of wheat offering in the South Island has been sufficient for requirements until recently, when the North Island has been importing for poultry purposes and for milling. The increasing motor traffic has taken a. bigger toll on the oat market than has been felt since its inception. The demand within New Zealand has been poor all the season. Prices opened up on the low sioe, and although merchants purchased stocks they could not find a market at the time of having. Poor harvest conditions at Home first of all resulted in sales for export, and this was followed h v an Australian demand caused by drought conditions. Fairly heavy quantities of oats were exported, hut clesnite this fact it made no difference to the New Zealand market. Undeniably, a poor consumption now exists in the Dominion. and it seems probable that from now onwards New Zealand will cither have to look for an export demand or farmers will have to lessen the area planted in this cereal.

Potatoes have not been a payable crop. Australia wa? looked to as on outlet early in the season, but the embargo on shipments from New Zealand blocker’ this nutlet. The yields throughout the . c outh Island were very poor. In an ordinary season the decreased yield would have hccn sufficient for the demand, but the backward season for the new crop caused a heavier demand for old tubers than has been experienced for a number of years. This resulted in a sharp advance in November, but tew farmers benefited bv it as the bulk of rhe cron had been marketen. p.arlev has been crown in excess of rennirements for a number of years, with the result that where farmer- did not contract for their crop poor prices wore paid. A puantitv has been exported, which has helped to relieve the over-supplied market. Top-dressing has altered the demand for rveerass and other seeds. A few vents back it was quite common to rereive heavy orders from the North Island for autumn sowintr. This demand has now dwindled away, and the seed now offered is in ex-

oess of requirements within New Zealand. Here again, outside markets have been looked for, and a very largo quantity of ryegrass has been exported to England and America, The business, however, naa been done at a low price. r l he usual export in dogstail has not been experienced, with the result that there is a carry-over in this seed. Fescue has been scut away in the usual quantity at a fairly remunerative price. From the foregoing one can see the difficulties under which the agricultural farmer is struggling, and it is not surprising that many fanners, owing to top-dressing ana other methods, are endeavouring to turn their pastures into permanent, ones. Tins has boon shown by the increased number of sheep in Utago and Southland, and indications point to a lurthcr increase. It remains to bo seen whether in time history will repeat itself, in that this class ot business will be overdone and the agricultural farmer will come into his own once more.

BOOKSELLERS. Though the public has been spending more cautiously this year, tho booksellers have not been seriously affected, but busiincss has not been above the average. The manager of one largo shop, however, considers that trade has boon quite good, taking conditions generally into consideration. Tho Christmas rush has approached very quietly, though a steady volume ol business has boon maintained recently. Tho public taste lias been fortho better class of fiction, and tho ’’ Wild West ” novel has boon relegated to the dim and distant past. The favoured novels have in most cases been English. Booksellers have had to contend with over-production, a state of affairs which will gradually right itself. Books of travel and biography have lost none of their attractiveness, and tho better class of book dealing with general literature has been steadily in demand. There has been a ready sale for books dealing with England and English politics, such as tho works of Lord Birkenhead and Mr Baldwin.’ The popularity of essays of the best typo has grown appreciably, and the demand for modern plays is almost insatiable, The desire has been essentially for something modern, with tho result that the sale of the works of such authors as Dickens, Thackeray, and Scott has suffered. To a large extent the drop in tho demand for tho “ Western ” story has been atoned for by an increase in the reading of good English detective stones. ‘Edgar Wallace is tho champion,” said one bookseller. “Ho writes one a week, and wo sell them, too.” A second bookseller drew attention to a drop in tbo sale of theological works. The only reason that ho could see, he said, was that ministers’ salaries were not. kept »>n a par with the cost of living.. The largo and more oxporfsivo volume had not sold so well, but books wore still a favourite form of present. He had been bewildered bv the number of books published both in England and America, and fashions in books changed as_ rapidly as fashions in bonnets. Greater interest bad been taken in drama, probably owing to the formation of reading circles. “ I think tho popularity of tho motor car and picture shows is affecting the pursuit of literature,” ho said. There was not the amount of homo life that there used to be, and people were not reading by the fireside as they used to do. Donn Bryne was a favourite author. An interesting change has been a decrease in the appeal of the sex novel. The 6s volumes are being ordered more cautiously, and people are waiting for the 2s fid and 3s fid editions.

HARDWARE AND IRONMONGERY.

When reviewing the position of the various trades in a community it is often found that the condition of a particular business may be partially determined by the depression of liveliness of an allied trade. For instance, a great deal of the prosperity enjoyed by hardware and ironmongery houses in dependent upon the state of the honsobifilding trade. If many new residences are being constructed throughout the province it naturally follows that household utensils and hardware furnishings of nil kinds are being purchased in comparatively large quantities. New ranges, stoves, and fireplaces have to be secured, and hardware merchants are kept busy in every department. The year 1927, however, has not been conspicuous for its expansion of retail trade, while there has been a slight decline in the number of new residences built throughout the province. Reports from Dunedin merchants indicate that they have been passing through a particularly slack period, relieved only during the past few weeks by the briskness that always heralds the coming of Christmas. Many Dunedin firms depend largely upon the country districts for their trade, and all report that business from these sources has been comparatively slack. However, the results of the present season on the land promises a revival of trade during the coming year, and all are optimistic. The manager of one firm stated that the Christmas rush had not set in to any marked extent, but he was of opinion that buying would be brisk throughout the coming weeks. Up to the present people had been showing more interest in the smaller lines, but there was a large and attractive range of goods this year, and prices, on the whole, were a little easier. Asked if the now tariff had made any changes in the class of goods being imported by the various firms, he stated that llio majority of orders had been placed long before the preferential tariff had become operative. This meant that very little change would bo noticed in the class of goods exhibited for the present season, although there was no doubt that British makers would be much more strongly represented on the shelves of the hardware dealers in the near future. It was unlikely that the new channels through which the purchases would then be made would lead to a higher-priced class of goods being stocked.

BUILDING TRADE. During the past year oven the most unobservant citizens have noted with approval the outwardly healthy condition of the building trade in the city. This flourishing progress had been consistently apparent even during the dullest portions of the winter season, and it is significant that the carpentering and bricklaying trades were those least affected by the serious and extended period of unemployment. In point of fact, the building trade did much to absorb workers who had been turned out of their regular positions, and the number of large construction works which have been carried out in Dunedin during 1927 prevented the number of unemployed from becoming as large as in other centres. It has been recognised, moreover, that the briskness of trade has been for the most part in the direction of large city buildings employing big gangs of men. The housebuilding section of the trade has not been enjoying unusual prosperity because of the general tightness of money among the individual members of the community. Builders engaged on residential work have felt the pinch of circumstances equally with other branches of general trade. Several private builders have been employed by the larger contractors on the big city undertaking. In reviewing the trade from the point of view of these contractors it must he said at once that no business of any kind has prospered more generously during 1027. The now Town Hail, the new Daily Times Building, the new Evening Star building, and Speight's building are four big construction works which have been in progress for many months, while such undertakings as the new Regent Theatre and the Burnside acid works have been put in hand recently. The Public Trust buildings in Moray place are now within sight of completion, and other smaller buildings have been in the 'nan Is of fnntr.vtn's. The railway construction of workshop' is also an important feature of the ti ade at the present time, and tile skeleton a mammoth building is already towering above the old shops facing Cargill road. Comparative statistics show that there has been a slight decrease in the nmnbei and value of construction works in 1927 as compared with 1929, but the fact that several large buildings now in course of construction were begun >c. ■ r la months ago must bo taken into account when examining the figures covering the period of the past two years. This naturally dues not apply to the building

of residences, the number of which show a sliirht but definite decrease. In 1020. from April 1 to November 30, a total number of Tt’tO permits were issued. The acfrrejrate vain,, was £.7.70.007, and of their number 240 v.--re dwellin'.:.-- and 30 busi-

ness prerni-e -a I rom April I to November 30, 1927, the number of permits

readied GSS. and the value aggregated £3411,333. In all, 208 dwellings were constructed, and the erection of 39 business premises was put in hand. In discussing prospects for the coming year, contractors are unanimous in the opinion that busy times lie ahead. Plenty of work is offering for the 1028 period, and it is anticipated that all tradesmen will bo kept fully employed.

CHEMISTS. As the major portion of a chemist's business consists of catering to the needs of the sick, the extent of his trade depends largely upon the general health of the community. Jfc is an ill-wind that blows no one good, and illness, more particularly on the ecalc of an epidemic, means a prosperous and busy time for the dispensers of medicine and all incidentals associated with the sick room. This being so, it follows that a period during which the health of the community is good must of necessity be a quiet one for the chemist. The contents of hia formidable glass jars are seldom touched, and the hundred and ono articles in his shop for the treatment and cure of illness are not so often required. Those who make a point of studying community health arc unanimous in the opinion that the year 1927 n Dunedin has been remarkable lor the absence of serious epidemics, and the comparative freedom from sickness that the people as a whole have enjoyed. This happy state of affairs has been reflected in the trade carried on among Dunedin chemists, the majority of whom report that the past 12 months have been quiet and uneventful. The amount of dispensing they have been called upon to do has not been large, and although their business generally has been steady, the majority is of opinion that its volume has been less than in 1926. But the sale of medicines docs not jomprise the -whole of a chemist’s busin and in other lines the trade has been much as usual. During the year English manufacturers have been coming on to the market with a good variety of toilet requisites of all kinds and a visit to the larger shops in Dunedin proves that many new lines are being imported from France and America. This Christmas the selection is large and varied, and the goods displayed are more attractive than ever. This is due partly to the fact that many Dunedin chemists have accepted new agencies for toilet requisites, their actions being guided by tin fact that there is a steady and increasing demand from women for the newest and most up-to-date articles of this type. One factor of the chemist’s trade that is causing its members some concern at the present time is its tendency to extend beyond the province of the regular chemist’s shop. They point to the number of drapers who are now stocking lines which, in past years, have been handled only by thcnwclvcs. Women’s toilet requisites of all kinds can now be obtained at all the larger drapery establishments, and in many cases the prices are cut by drapers to the lowest possible level. While they admit that this new side-line of the drapery trade offers a certain convenience to women shoppers, chemists consider that their preserves are being poached upon. All report that there is a tendency for their business to diminish on this account.

THE TAILORING TRADE. For years tho comic papers of every country have revelled in jokes based on the difficulty experenced by tailors in locating their customers after suits have been delivered on payment of deposits. Like all other jokes, these are exceedingly funny provided that they deal with the quandaries of other people, but if the reader happens to be a tailor little appeal is made to his sense of humour. He frowns meaningly, and seeks laughter in a joke about stale fish that would strike a fishmonger ns being merely insulting. During the past year the members of the tailoring trade in Dunedin have had more than usual cause to resent the peculiar trait of human nature that encourages men to delay payment for their suits. In tho opinion of loading tailors the tightness of money, and the prevalence of unemployment during tho winter months, have resulted in a habit of running" longdelayed accounts, with the result that business has been quiet and inclined to be rather unsatisfactory. On the whole, however, the reports indicate that the demand for suitings has been consistent with a recent tendency to increase. Wool prices have indicated that the price of cloth during the coming year will be firmer, and since this became apparent, many orders have been taken for suits of all grades. At the present time the trade is busier than lias been the case for the past 12 months, though a few are of opinion that this improvement may not last beyond the early part of the summer. Compared with 1020 the past year lias been much as usual, except for a marked increase in the number of firms that arc offering factory made-to-measure suits to the public. Many tailors consider that tiic competition in this lino of business is keener, but not greater, and they do not find that their regular customers are being attracted by the cheaper lines. A good selection of cloths, both of Ungl’ and colonial manufacture, have been coming forward, and tho prices during 1927 have been inclined to drop. To-day the are as low as they have been for the past five years, and for tiic present the iiul ; cations arc that bed-rock has linen readied. Good suite of colonial cloth arc priced in the vicinity of £8 Bs, while imported cloths increase tile price of the finished suits by £2 2s or more. Tho majority of Dunedin tailors are looking forward to an increase of business in the New Year, following an improvement in conditions generally.

THE LEATHER INDUSTRY. OUTLOOK NOT BRIGHT. The present state of _affairs in connection with the leather industry can only be described as unsatisfactory. People engaged in both the boot industry and the tanning industry complain about the state of trade, and frankly view the outlook with a great deal of migiving. The position is accentuated to a largo extent by the importance of inferior sole leathers tanned in various parts of the v.-i rid where the cost of hides and labour seem to be lower than they are in Now Zealand. Since Juno there has been an extraordinary movement in the prices of all hides, 'ibis is apparently due to a world shortage, and exporters of hides have been operating freely. Prices have advanced by no less than about 80 per cent, during the last six months. Another important factor has been a decided scarcity of wattle bark for tanning. This shortage is the outcome of a severe drought in South Africa, and coupled with a strong demand from the Continent, it has led to an increase of more than 75 per coat in prices These factors scorn to point strongly to a ftrm market for the coming year, and unless a change foi the better takes place it seems fairly certain that the unemployment in connection with both the tanning and the boot manufacturing industries will bo greatly increased.

SOFTGOODS TRADE. FEELING OF OPTIMISM. Business in the softgoods trade has not always been as good as could bo desired, bur mail. fact u rers and importers generally are hopeful that the tide has turned to -ouio extent and that the prospects In regaid to prices for our primary products are snlliciently bright to warrant the expectation of a distinct revival in the near future. One of the city loading manufacturer- stated that the orders in hand for good,- now in the process of mapufaetnre are considerably greater than those received for the corresponding period lost yen r. One nf the most satisfactory feature- is the growing demand for New /ea lane made goods, it is apparent that consumers are showing a greater appreoin tion of the local product and realise that the quality of articles manufactured if th" Dominion will compare quite favonrah’y with (hc-e made in any other part of the Empire. A number of lines uliicb figure so pi nniiia-ntly in the Inta-t fa-hion-arc not likely to be made in ihb- . onnirv for a hint; time, as the population i- in’ .-ufficieni to warrant the i n-t a I lap on of machinery which would be jumbled only if the output v. a- very large, v, |th pi a. tirnV.v a world-wide demand for ir There is a Vb'.finet end on 1 he part of the public for good,- made In New /.'-aland. ■ ml if that eoniinae- a big expan-ion in Industry ran I-,, looked beg Verne . f tile r.-i.-d! trader- repo, i thar the pa.-t. year has IjCcti a fairly .-alls-

factory one, but others state that misiness on the whole has been dull. The prolonged period of unemployment earlier in the year had a decided effect on shopkeepers who cater for what may be called the working-class trade, but this was not so severely felt by those who supply the requirements of the middle and professional classes. Apart from the financial stringency, the weather had added to the difficulties of the rovaiiers. Ihc head ot one of the leading firms stated that bright warm weather would lead to a decided increase in business, because many people, especially women, would probably buy twice ns much in the way of summer apparel as they do under the prevailing conditions. Ho'adclcd that there had been a distinctly bettor tone during the last throe months, probably as the result ot the improved outlook regarding the prices of our primary products, and that he regarded the prospects as much more hopeful than they had been for some time. There have been no striking changes m fashions during the last year with the exception that artificial silk has come more and more into evidence, not only for wearin"- apparel, but also for furnishing fabrics. Many of the heavier fabrics are scarcely soon now, the groat bulk of the demand being fo r lighter articles. The retailers generally find that there is a good demand for New Zealand inado goods, subject to the qualification that fashion plays a very important part and that the demand in regard to quite a lot of the ladies’ clothing is for materials that are not made in this country.

THE FOOTWEAR TRADE. A DISAPPOINTING YEAR. The conditions in the footwear trade for the past year have not altogether been satisfactory. Prices in many lines have been lower than they were last year, necessarily requiring a large turnover to do the same monetary volume of business, Owing to weather conditions the seasons have not been conducive to encouragement for people to buy lighter goods, and the ever-increasing changes of fashions enforce the keeping ot larger stocks. Up till last week there was no bustle in coping with the trade, and retailers generally were anxious to know whether the usual Christmas trade would be done before | the 24th. As usual, tennis, bowling, and beach shoos are being sought after fairly largely, and light coloured shoes of every shade," from the palest fawns to greys, peach, and caramel, are in demand, but everyday useful shoos look like remaining in stock for the time being. One very noticeable feature of the trade of the present day is that men’s footwear is a diminishing quantity- partly due to 1 the motor car, in which he can wear 1 anything, but more particularly to the wants of mother and daughter and increasing household expenses. The latest advices from Home definitely record an increase in price of all leathers, ’ particularly patent, ranging from 5 to 74 per cent, on raw material. This is already in operation, and new season’s ranges of samples will be increased accordingly.

FLOUR MILLING. The flour-milling industry has proceeded along normal lines during the year. There have been no marked fluctuations in prices, which, as a matter of fact, have been very steady for quite a long time. One well-known miller expressed the opinion that if the present Customs tariff was administered os he thought it should be it would be of great benefit to the farmers and would also help the millers. The farmers would then get a good price for their wheat, and the millers would have the satisfaction of knowing exactly where they stood, thus being relieved of anxiety in regard to supplies and so forth. The miller also expressed the opinion that while the conditions would bo improved in the directions he had indicated the consumers would not be penalised in tho way of having to pay more for their bread.

CONFECTIONERY. “There have been a lot of complaints regarding slackness of trade during the year,” said the head of one of the principal manufacturing confectionery firms, but our experience has been such that 1 do not think there has been any cause for complaint so far as our business is concerned, though things have been perhaps a little on the quiet side at times. The output has been well up to the average, and no difficulty has been experienced in keeping all the employees fully engaged.” The speaker went on to state that he thought the increase in the Customs duty would be of, assistance to the manufacturers in New Zealand, and imported goods would have to bear a slight increase in cost.

The manufacturer added that the prejudice on the part of purchasers against goods manufactured in the Dominion still prevailed to o certain extent, but it was not nearly so pronounced now as it was at one time. It had been broken down to a large extent during the war period, when buyers were unable to procure the imported article and were compelled by force of circumstances to purchase New Zealand goods, the quality of which appealed to many of them to such an extent that the local trade received a decided impetus. Improved quality and greater attractiveness in the get-up wore other factors which assisted the local manufacturers to improve their position. Some people, however, still hold to the idea that an imported article of any description must be better than one made in the country. The manufacturer expressed the opinion that the prospects for the coming year were really good, provided, of course, that the prices for our primary products did not decline. “We found out many years ago,” he said. “ that the conditions in the.country are reflected in the towns, and that if the farmers are doing well the business community will also do well.”

JEWELLERS. “Just about the average,” is how jewellers describe business during the past year. Trade generally has not been as good as last year. Throughout the winter the demand was particularly quiet, and last month very little business was done. Jewellers, however, depend very largely upon a Christmas rush. Bad weather is considered to be responsible for its slowness in approaching. The shops have large stocks, and there is no feeling of pessimism. An increase in business next year is being confidently anticipated. The jeweller is the victim of changing fashions, and he, therefore, has to adapt his stock to the whims of the public. For that reason jewellers’ shops now contain a large proportion of goods which really belong to the better class of fancy goods. At Home, however, jewellery is returning to favour—a state of affairs which will undoubtedly be reflected in New Zealand. There has been a tendency of late towards the buying of cheaper gifts. This is considered to be due to the fact that more presents are being given. The habit of giving . Christmas gifts is increasing. Jewellery is returning to favour because there is nothing to take its place. The most popular presents have been slave bangles and pearly strings. The latter have become a staple line, and the better quality of article has been demanded in almost every case. There has been a steady demand for rings, signet rings being particularly popular as girls’ gills. Brooches, the inquiry for which had dwindled away to nothing, are returning to favour In the north the demand has increased considerably, and the fact that jewellery in this form is becoming more popular at Horne is shown by the attention it is receiving in catalogues from Fnglish manufacturers. Shingle • brushes, a line which has followed the popularity of short hair, arc selling well, and scent sprays are in good demand. Imitation tortoiseshell and xylonite ware is popular. Throughout the year there has been a strong demand for clocks, the designs of which have improved to a very considerable degree during recent years. Wristlet watches' have met with increased sales, ami are replacing pocket watches because they are more convenient and because they are ornamental as well as uselnl. I hroughoi!t the year the demand has been steady. Whereas only a short time back china ami "bassware was tin- most popular form of wedd’ug gift, silver is now taking its place. This is considered to 1m due to the fact that crokry is e : ,s!v l.r.dcm and silver ware makes a nine lasting present. M ft ii riii’J a;-*' n-i<v ~- rnt. tlMii’Ji they havu cx;-orif'i:, (jtiicl purir.fls tli«‘ vour. f “Om* r'xjtr-rinnff ha* hr-fii I:iat V'-rv little Gel maiy.-w. is being imported.;’ Aim ricc.ti fashions in jewcllt ry ib imt ap•cal to colonials.”

THE FRUIT INDUSTRY. The New Zealand fruit season of 1927 began, progressed, and finished encouragingly as far as the Home market was concerned. Prices ■and market conditions were considerably better than those of the preceding s easun, and exporters had little to com plain of. lint English merchants point out with some emphasis that several advantages enjoyed by the Dominion will not bo experienced again lor some years, perhaps a decade Chief among these features were the poor quality and short supplv of American consignments and the remarkatily short crop from Australia. New Zealand was fortunate in having a good crop, and doubly blessed in Unit she was not c.allcd upon to face (he usual competition Moreover, Dominion growers were able to get their produce on to the market ahead of overyono else, just when buyers were beginning to want a change from the American article, which was of very poor qualify. The Dominion would have secured a better .season’s average, had her exporters obtained better and more reasonable prices for the first shipment. New Zealand’s exports are increasing annually and before long her total shipments should pass Cue million cases mark. In 1927 22 vessels took 448,731 cases of apples and 21,567 packages of pears. The condition and quality of the fruit was generally good, one or two shipments only snowing defects. Pears, though not bad, did not come up to the quality' of apples. Ihe quantities exported were easily absorbed, and prices, taking the season as a whole, were good. There was a period when the price of apples in England became standardised at 16s per case. The total shipments from Otago were Apples 35,653 cases, and pears 1175 eases, an aggregate of 36,828 cases. Ihc year 1927 was the most successful export season on record, in regard to prices. Stone fruits showed a great decrease as a result of frost, but the better prices for other fruit compensated for this. The returns from this year’s production were about equal to those derived from double the quantity in 1926. London prices on ad Otago shipments averaged 18s 3d per case gross, and the South American shipments averaged 18s per case gross.

THE PASTORAL YEAR. Though the your 1927 opened unfavourably in tho livo stock markets, the grazier should finish the chapter m a much bettor position than that in which he found himself at tho close of 1926. In January of this year beef was selling at 55s per 1001 b, against 44s in tho corresponding month of 1936, a dlllcronce which represented a per head disparity of roughly £5. From January till Juno, prices fluctuated from 35s to 31s per 1001 b, whereas in 1926 tho lowest point reached up to Juno was 365, and tho highest 47s per 1001 b. The spring of this year, however, saw a change, and a gradual upward movement saw the 45s mark reached in October. Since that time values have vailed from 45s to 40s, and to-day the level is about 4s per 1001 b better than at the close of 1926 —a difference per head of from 30s to 40s. _ . A somewhat similar position has obtained in respect of mutton and lamb in Otago. Tho year commenced unpromisingly, but early spring brought better prices, which gradually increased, until the end of the year, when instead of being Id per pound loss than 1926, 1027 is from Ijd to lfd ahead of last year. An encouraging feature of the lamb season for 1927 is the opening of tho freezing .works for killing before Christmas. This will allow of the clearing up of all the milk lambs in Otago and Southland before the holidays, a course which should find ready approval among graziers. The market opened in September with early lambs selling at 18d per pound, which price dropped to about lljd at the beginning of this month. It is apparent that this season’s opening values at tho works must exceed last season’s Bd, so that tho prospects nr© for a better season in 1927-23 than in 1926-27. Tho year commenced worse than 1926, but in all fat stock markets, beef, mutton, and lamb, the year closed with tho advantage on tho growers’ side.

THE WOOL INDUSTRY. The New Zealand wooigrower has experienced another satisfactory year, and the close of 1927 finds him in a practically unassailable position. The last woolsoiling season opened in November, 1926, when the position revealed an impressive stability in raw material values, and as tho season progressed competition became more general with a steady improvement in prices. The quality and condition of the wool were exceptionally good, the wools being sound, of good colour and light in grease. Bradford was eager to secure hogget wool which came forward with excellent style and growth. America came in on super crossbreds of 44 to 46 and 46 to 48 quality, and Australian buyers also had similar orders to fill. Medium style crossbreds were unsteady and coarse grades improved. Germany took most of tho medium and inferior parcels, and Franco as usual took the finest bellies and pieces and lambs woo!. Merinos and halfbreds were generally snapped up by local m.lls. Fconomic advances in Germany and Italy had a considerable effect on the demand.’ Bradford was inclined to lag tor some time, shunning tho high limits to which tho Continental buyers adhered, but later in the season they ceased questioning tho soundness of the season, and made the Continent go fairly high for stuff their buyers had to have. The Dominion sales for i lie past season totalled 513,461 uales, the carry-over from the previous season being 10,844 bales. The average weight per bale was 3451 b, against 3421 b m 1926. Tho value per bale showed an increase, being £l7 18s Bd, against £l6 16s 2d in the previous year. The average value per pound was 12.48d t against 11.80 din 1925-26.

The results of the season to Otago growers were very satisfactory at the three sales and at the final wash-up 73,681 bales were disposed of at an average price of £l9 16s 6d, The average price per pound was 14.69 d. The Otago wool, though lighter in condition, was very sound and well grown, particularly with reference to the first and second sales. Buyers remarked that last year’s woo] was the host seen in Dunedin for some years. Choice lots of halfbred wool came from North Otago Central Otago and Waiknka, while the usual merino clips showed a great improvement in soundness and condition. Hogget wools were particularly good. The 1927-28 season opened at Wellington last month' with a marked increase in values, which was maintained for three or four sales. At the Christchurch sales valued receded somewhat, but still prices generally show a considerable advance on fast season’s closing rates. Though the prospects to-day are very bright, it should be remembered that this season’s inflated values are the result of other countries’ misfortunes, and caution should be used accordingly.

THE DAIRYING INDUSTRY. : Alternating periods of good and bad markets have characterised the dairying industry for the past year, but production ! over the whole Dominion has maintained the high level—a record —reached in the preceding year. Grading statistics demonstrate that quality accompanied quantity. 'l'lie fir-t few months of the year, which formed the back end of the season, showed improvement in prices that were instrumental in bringing the season’s average up to a satisfactory level. A notable event in the dairying calendar this year was the collapse of she Dairy Produce Board’s v-o-m ( compulsory control. When the restircTTons on exports were removed, and a free market was provided, it was poctcd that prices would advance. Tin's happened to a certain client, but after a few offers in August and September, inquiry stopped. The general level of mures just now is below expectations, T, mi if is just a question of whether buyers at 32d (cheese) and Is 5d (butte.), whose offers were accepted in (he spring, will clear a great deal on their operationWith the elimination of control, and the comparatively empty market resulting from short supplies from Australia and file Agentine, the statistical position has not loon letter for New Zealand for ninny ■u-i as a iv-rji p■ o. 1 ;’rei> hn-e been to believe that prospect* for the new season v. ere exi raordinanlv bright. Howla. fallen a -ro I hi* ’i,. rt f anfnpiTor Though prediction in the North f'land. not,ably in Auckland and the Waikato, ha- been exceptional llov.aiw (Page has ~o t reached 1a -t years level owing to the uncertain and unfavour able v.ieitber < c.ndi; ion - dint have eba ia< :--r i .0,1 the (ocy oup-on. ! Todur-l ie 11 so far hi- -Inc, vn a deere a- e and value- on the I endou marl. ei v. 1 1fe ;. today arc in the . , e- to ric, are ml up m ~. i... ■--- -., -r» deal I] j e ..-ear eg -es aiiyiliing but law ninthly for d.airy producer*.

TOYS AND FANCY GOODS. Toys have lost none of their popularity, and business, on the whole, has been bright. They have followed the modern trend and become more mechanical. New lines have been introduced, one of these taking the form of electrically-lit motor cars. For girls, dolls are still the favourite gift, the unbreakable variety finding a ready sale. Trade in fancy goods has been quite up to that of former years. Handbags are in strong demand, and novelty perfumes, manicure sets, and sowing outfits have been extensively dealt in. There have been good sales in toilet goods.

THE HOTEL TRADE. A review of the year’s trade among the hotels of the city cannot avoid mention of the depression that has been so apparent during the past 12 months. Licensees agree that it has been the leanest period for many years, and all have found business quiet both in house and bar. The accommodation slide of the trade is an important factor with the larger hotels, and a noticeable feature of 1927 has been the drop in the number of people travelling. In discussing the present situation, one Dunedin hotelkeeper said that the cry was being constantly heard that there was insufficient accommodation in Dunedin, and the larger centres of the Dominion during the months of January, February, and March. He contended that as far as Dunedin was concerned, carefully observation over a great number of years—excluding th s Exhibition year—had convinced him tha£ for eight months of the year two-thirds of the available accommodation _ in the city was not occupied. He praised the Government Publicity Department for the good work that was being done m attracting tourists to New Zealand, but entered a plea on behalf of the hotelkeepers who, after all, were the people principally concerned in catering for the needs of visitors. They had no security of tenure, and he was satisfied that in the event of prohibition being carried there would not be more than half the present accommodation throughout the country. An examination of the bar trade in the city during the past 12 months discloses the fact that wines are increasing in popularity among all sections of the community, while the consumption of spirits is barely holding its own. The high cost of spirits is having a telhng effect, and the reduction in tlm prices of the lighter and cheaper wines Is having a lively effect on the sales.

THE MOTOR TRADE. Among motor traders the consensus of opinion is that the season just past has been anything but satisfactory, one or two, in fact, going so far as to say that it has been the worst for many- years. To some extent, the weather has been responsible for this, but in most cases it is generally admitted that the main contributory cause is the fact that a large percentage of prospective buyers of ears are already car owners, and when purchasing desire to trade in their old cars as part payment for the new machine. Thus the problem which most of the motor dealers have to face is_ meeting the demands of a buyer who wishes to trade-in his car, without paying a price which will prevent him (the dealer) from transferring without loss. This, according to the majority of the local motor traders, is becoming more and more difficult, as it is generally recognised that the second-hand car market is gradually nearing saturation point. Moreover, the ideas of the owner, and the ultimate purchaser of a second-hand car; differ widely, so that, in trying to strike a balance between the two, the dealer is more or less in a cleft stick. So acute has the position become now that many of the agents have come to the point where they are forced to refuse to take in used cars as part payment for a new machine, and are not importing more cars than are necessary to cope with genuine cash sales. One prominent Dunedin dealer, who, during his 25 years’ connection with the trade, has studied it from every angle, summed the position up tritely. “ Occasionally,” he said, “it may be desired to take in a second-hand car, but only at a conservative price; and if the seller refuses to accept because he has been offered, say, £25 more by someone else, it is prudent to let that someone else have the business, for it is quite clear that a man who purchases at an uneconomical price must lose his money. No matter how cheap a car may apparently be, it is dear unless it can be disposed of at the expense and cost of the sale within two or three months of its purchase. A used car in hand three months after purchase has fallen in value, and the price must be lowered to make it an attractive proposition; in the meantime it has eaten up insurance, interest, and storage charges, and. what is more, has restricted the credit capacity of the dealer by locking up funds necessary for business. At present there is a fair demand for used cars, at a price, but it is generally recognised that the time is coming when motor traders throughout the country must cooperate in devising some method whereby a definite value can be placed on all second-hand machines. As an illustration of the decrease in sales during the past year as compared with 1920, the following figures are interesting:—For the 11 months ended on November 30, 1920, 1208 cars were registered in the Dunedin district, 135 of these being of British manufacture. For the same period of the present year the total registrations were 794, 70 being British made cars. Similarly, for the first nine months of 1920, 10,936 American and 1462 British cars were imported into the Dominion, but up till the end of September of the present year the importations of American cars totalled only 7065, and those of British 1379. It is satisfactory to note, however, that, notwithstanding the falling off in importations of all makes, the percentage of decrease in the case of British' cars is only 5 per cent, as against 38 per cent, for those of American make; so it will be seen that cars from the Homeland are holding their own in New Zealand better than the foreign article. Despite a certain pessimism among the majority of the motor dealers, however, there appears to be a feeling that the trade, after a somewhat hectic period during the past 11 months, is gradually recovering. More conservative trading methods are being adopted, and future prospects appear to be decidedly brighter.

FRUIT. In the fruit trade, business has not been so brisk as in former years. The year began badly, stone fruit, strawberries, and raspberries all being scarce and, consequently, high in price. Throughout the year bananas were particularly dear, although the fruit, generally, has been of pood quality. American and Canadian fruits nave been in fair supply, especially oranges, apples, and grapes, and have commanded good prices, but owing to the failure of citrus crops in Australia lemons have been scarce, and the market has had to depend on supplies from other sources. Up till last month Island tomatoes were plentiful, and sold well, but with the advent of hothouse fruit from Christchurch and suburban growers prices in both cases fell off, as one supply, so to speak, was competing against the other. Local apples were better in supply and quality than was the case last year, and orchardists generally had reason to he satisfied with their prices, particularly from the Home markets. _ . This season’s cherries and strawberries have not, so far. been plentiful, and, probably on account of the coldness of the weather, have not sold particularly well. | Moreover, it is anticipated that the supply i of these and raspberries will again he ! short (luring the next two or three months, ' as late frosts in the Central Otago district have taken their toll of the gardens. ' Also, the borer has been busy among the raspberry crops. Tomato growers in the same district have also suffered heav--losses through the same cause, and in so;--cases whole crops have been ruined. Old potatoes, up till the beginning of last month, were fairlv plentiful, and commanded good prices, hut new potato ■ are scarce as vet on account of the hack ward season. ('anli (lowers, for n time, glutted market, and were selling at to noteing. but the supply of late lias been fairly regular, and. all being considered, the , prices are reasonable. j