THE SILK TRADE
WELLINGTON BUSINESS MAN’S VIEWS. A well-known Wellington business man speaking in regard to the silk trade, stated that where exchanges were so fluctuating and unstable, inevitably similar fluctuations must uixe place in the price ot suit goons; and, furthermore, that as long as practically the whole .of Europe—Russia, Germany, Austria, the Balkan States, and Turkey—were almost bankrupt, and France and Italy in an impecunious state, it was hard to see how a general state of prosperity could exist. The new countries, including New Zealand, had this much to their very great advantage, that they had in their meat, their wool, and various other raw materials an asset which the old countries must buy, because they were essentials, and therefore the future in the New World looked much brighter than in the Old World. Broadly speaking, the price of silk, as of everything else, depended upon the supply and demand. The last few years, to a great extent, had brought about an apparent wealth to a great number of people, but the discerning realised that this was only a fictitious wealth, and not real, and one that might largely disappear overnight. Till last March silk goods were very scarce, if there were any turn g like an active trade in America they would soon be scarce again, because America consumed between 60 and 70 per cent, normally of the raw silk consumption of the world, and last year purchased the whole of the Japanese silk crop, which was nowadays by far the most important item in raw silk production. For the moment there was a certain weakness, largely brought about by the abstention of Arne- i on .purchases in Japan, and that to a certain extent had influenced buyers, who feared the same thing would happen in European goods. The quotations for European goods were only very sightly less than what they were six months ago. and the reason was that the cost of production in the shape of labour, dyeing materials, and so on, had increased so much that even a depreciation of raw silk affected European goods far less than those made in the East. Tire great point at issue was what is going to be the normal price of raw silk, and the normal nrice for twisting that raw silk for dyeing, for weaving it, for finishing it, and for handling it. That would take some years still to arrive at, and the best course for all those to take who were not forced to speculate was to buy from hand to mouth. Bv that means they would nol get over stocked, and would be able to supply thpublic according to the demand. The general trend of prices in the silk trade would be a downward one for some little time to come.
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Bibliographic details
Otago Witness, Issue 3489, 25 January 1921, Page 51
Word Count
468THE SILK TRADE Otago Witness, Issue 3489, 25 January 1921, Page 51
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