TRADE OF THE YEAR.

Otago Witness, Issue 3224, 29 December 1915, Page 9

TRADE OF THE YEAR.

MONEY PLENTIFUL AND

BUSINESS BRISK

On Thursday, 23rd instant, members of the staff of the Otago Daily Times made inquiries from merchants and tradespeople in Dunedin respecting operations in business circles in the past 12 months. Generally, it was found that there was no lack of money, that many people wore spending freely, and that as a consequence, the tone of shopkeepers and others was distinctly optimistic.

Tradesmen agree, however, that, while the wage-earners spend as freely, if not more so, than ever, tho richer classes practise a rigid economy. “If wc depended on the better-to-do people we could not keep going,’’ said one business man. “I do not quite see tho point of that kind of economy, if wo shut down, many hands would bo thrown out of employment.’’ Everywhere one heard the same tale. The poorer people were getting good wages and spending them freely. The rich were making a virtue of economy. One hoard a story of one wealthy man who declared to, his tailor h;s intention of wearing all his old clothes out until the war was over; and of another who had sworn not to buy any tics, or sundries of that description, during tho period of the trouble. “My opinion is,’’ said one gentleman, “that the position should be reversed. The rich should bo spending freely to keep the industries going and the people employed; tho poor should bo saving what they can for the ‘rainy day’ that, it is predicted, will follow the war.” Whatever the rights or the wrongs of it all may bo, it is certain that there is plenty of money about, and that the people are prosperous. As far as most merchants can ascertain—that is, prior to the taking out of their balances for the year —their volume of trade has perhaps hardly been up to that of previous years. Hardware merchants report having experienced difficulty in securing supplies of all kinds of hardware lines, such as bar iron, angle iron, T iron, mild stool plates, galvanised corrugated and plain iron, copper and brass sheets and tubes, galvanised and black water pipes, zinc, wire nails, and fencing material. The shortage is fully explained by the fact that the British Government has practically taken control of tho works of the greater number of the larger manufactories in Britain for tho purpose of turning out war material, and has first call on all the lines above enumerated. Taking values all round, these have appreciated fully ICO per cent, during tho past 12 months. 'l'his increase is not, however, as yet being fully felt in the dominion, because on the outbreak of war all tho towns wore carrying larger stocks than the trade required. With the clearing up of these stocks and tho delay in replacing them there is bound to be a shortage. This shortage is expected to be fully in evidence within the next six months. The business of the year, taking all things into consideration, has turned out to be much better than was anticipated, and this statement can bo applied to tho retail trade. New Zealand has not suffered badly, commercially, from the war. The produce being exported from the dominion is realising very high prices, and as a consequence farmers are able to buy farming materials at the enhanced prices ruling. THE MILLING TRADE. Whatever opinion may be passed to the contrary, it cannot be said that millers have had a successful year. On tho contrary, it is well known that many in Otago at any rate have lost money. Early m tfle year the Government secured a large quantity of Canadian wheat at a cost to it of. 6s 3d a bushel, but decided to cell it to the millers at 5s 9d a bushel, the millers undertaking to sell tho flour gristed at a fixed price. New Zealand wheat, however, was costing up to 7s 2d a bushel, nd on tho Canadian and Australian cargoes of wheat bicoming exhausted millers still had to pay high rates for the locally grown cereal," and stocked up at big prices. Then on top of this, certain Canterbury millers, consequent on the importation, duty free, of American flour, commenced to cut the price of flour, and, though the wheat had cost high values, competition brought flour down with a run. To add to their troubles, the high cost wheat having been reduced in bulk to small compass —millers all the time gristing at a loss —it was then found that the Government statistics as to the wheat yield were considerably out, and that there would be a surplus, and the Government thereupon decided to remove tho embargo on the export. The local parity, however, put any suggestion of export out of consideration, despite the fact that wheat had steadily fallen in the interval to about 4s 6d a bushel. Tho climax was reached when Canterbury merchants —who had practically tho whole of the available supply in their hands —began to ask high prices for their wheat, which is now quoted at about 5s 6d, ex trucks, country sidings. Flour, which had dropped from £l7 10s on March 6 to £l2 a ton in October, has now been advanced to £l3 10s and £ll. At the present time it may be stated that tho milling trade in Otago is at “sixes and sevens,” with undercutting very prevalent. The local Millers’ Association has had to bo disbanded, and every miller is now naming his own price. A comparison of current prices for ordinary good quality produce with those ruling a year ago is subjoined

THE DAIRY TRADE. During the year the dairv trade in Otago and Southland has been tip to the average, though short in North Otago and South Canterbury, owing to the drought. Recent advices from Canterbury state that the factories there will have to close by the end of March. The pasture, it is said, is like a road —hard, with no grass at all. Of course, the war has interfered with the trade. A number of farmers’ sons have gone to the front, and the farmers have sold their stock and gone in for sheep. This has lessened the output from some quarters, but fortunately the total output is much the same as last year, owing to the increased product of those who are using milking machines, thus enabling them to milk larger herds without inconvenience. The practice has been commenced by the grading department of grading cheese a 4 the Government grading store at the Bluff. The grading has been done every week, and we understand the system has been showing some serious defects in South Island cheese, a great many second grades having been found. The result of this close inspection will certainly load to a higher standard of quality among the factories. One gentleman in the butter line said: “The Otago district south of Palmerston has had an exceptionally successful year, but north of that the year has been a_ very poor one. We have had good moisture in the south. It was somewhat dry in the early spring, but since October the country and" the cattle have made a wonderful recovery.” THE FRUIT TRADE. For years past people have been taking up land in Central Otago for fruit farms. The effect has boon to increase the supply of fruit in the Dunedin market,- but as the demand is also increasing prices have remained stationary. Although extensive areas have been taken up in small allotments the full effect of their return will not bo felt for some years to come. Many of the plantations are young yet, and there will bo little product from them for five or six years. A prominent fruit dealer said; ‘‘So far this season the fruit trade has been exceedingly brisk. Business generally for Christmas week has been heavy, more especially in locally-grown potatoes and green peas. These have been in heavy supply—in fact, the supply of potatoes has been so plentiful during the last few days that prices for Christmas have never been so low as they are at present.”

SLlujuxuuru . 1914. 1915. Wheat (601b) ... 6s Od 5s 6d, 5s 7d Flour (20001b) ... £14 10 0 £13 10 0 Bran (20001 b) ... 7 5 0 4 15 0 Pollard (20001b) ... 7 10 0 8 0 0 Oatmeal (ton) ... 14 10 0 17 0 0 Oats, good (40!b) ... 0 3 0 0 3 3