FILLIP TO TRADE

Otago Daily Times, Issue 23527, 16 June 1938, Page 9

FILLIP TO TRADE

SPELL OF COLD WEATHER BUSINESS NOT YET NORMAL FARMERS’ LOWER PURCHASING POWER (Special to Daily Times) <? AUCKLAND, June 15. Purchases of heavier classes of clothing and footwear have increased considerably in shops in the past few days as a direct result of the cold and wet weather. “ It is amazing what a difference the weather has made to turnovers,” said the manager of one large store. “ There is no need for me to stress the extent of the fillip to trade. It is sufficient, however, to inspect any store dealing in winter goods to realise that a rush has set in among a big section of the public to make purchases that, because of the long spell of fine weather, have been long delayed.” Manufacturers of clothing also report in many instances that there has been some revival of winter buying by retailers.in overcoats and heavy underwear. They stress the fact that, while this extra business is helpful, it wili make no appreciable difference in restoring business to normal.

"With some manufacturing businesses the depressed condition is not alone due to the higher labour costs that have placed their goods at a disadvantage with overseas,” said one manufacturer. “ Generally speaking, the lower-priced overseas goods form the principal factor, but on the other hand my firm produces certain lines that meet with no outside competition, and yet these are difficult to sell. Our experience is that while the purchasing power in the cities is good, the reverse rules in most country districts, more especially in our own case in the South Island. Storekeepers in country districts with whom we trade and who are waited upon by our travellers, invariably tell the same story. It is that the higher farming costs have reduced farmers’ incomes below what normally could be expected from the level of primary prices.” The extent by which the wages of operatives subject to short time are being affected in Auckland clothing factories was mentioned by several manufacturers. Some staffs are working four days a week instead of five, and some staffs or sections thereof are working three days on a four-day week basis. It is pointed out that a journey woman earns £1 16s for the period instead of £2 5s for the full week. If working for three days her earnings are 275. Such reduced earnings are said to have induced some girls to quit their employment, as they are insufficient for their support. Instances are quoted in which girls leaving factory employment have intimated that for the time being they are taking up domestic service.