SOFT GOODS

Otago Witness, Issue 3383, 15 January 1919, Page 5

SOFT GOODS

NO REDUCTION IN PRICES. WAR'S WASTAGE OF MATERIALS. (If bom Ouh Own Cobbesfon otUT i AUCKLAND, January 9. An expectation that the cessation of the war and the removal of shipping difficulties would tend towards an immediate reduction in soft goods prices has arisen in many quarters since <tno signing of the armistice. This idea, however, is negatived by the Auckland representatives of the trade. The general impression among dealers is that present prices will continue to rule, and in some instances will even be increased for fully a year to come. A concise summary of the position, amplifying this view, was recently issued by the Auckland branch of the Warehousemen's Association to retail firms. The statements of manufacturers and' Home buyers who are in close touch with the Home and foreign markets, to the effect that prices cannot be expected to fall, are supported by the following reasons: —(1) That the world's cotton crop, estimated at first to show a large surplus, has now proved to be the lowest on record; (2) stocks of raw cotton held in England are very small; (3) wages will continue very high, and considerable labour troubles are expected,' a strike of 100,000 operatives having already taken place; (4) an enormous demand exists for manufactured goods in all part 3 of the world, which demand will increase tremendously from those parts most adversely affected by war conditions. It is stated that the correctness of these surmises is borne out by the fact that since the signing of the armistice advice has been received that prices are steadily rising, and in many cases are quite prohibitive. One or two interesting points which further confirm this summary of the position were mentioned to-day by a member of an Auckland drapery firm. "As is well known," he said, " the cotton manufacturing industries of Belgium and France have been paralysed during the war. Many of the mills have been destroyed. Naturally, it will be a long time before the industry can be rebuilt. Meantime the Continental buyers are busy in Great Britain, and according to information just to hand they have contracted for the wholo of the output of certain mills for several years to come." Not only will the war's wastage in these/ countries have to be made good by Great'. Britain, but in Russia also, if further advice from a London warehouseman may be taken as a general, indication of the position. Writing to an Auckland firm, he stated recently that he had just been advised that practically the. whole of his firm's stocks of certain grades of hosiery has been requisitioned by the Imperial Government to supply the needs of the unfortunate Russians, and this course had also been taken with other firms. Again, it was stated that large numbers of buyers from India and China have arrived in London, anxious to place orders at almost any price. During the war the Eastern trade in manufactured goods has been completely suspended, and as these countries were very largely dependent on the Western markets they are now urgently seeking to replenish their supplies.