The Pahiatua Herald. PUBLISHED EVERY EVENING. TUESDAY, JUNE 15, 1920. H.C.U. GROWS GROGGY.

Pahiatua Herald, Volume XXV, Issue 2500, 15 June 1920, Page 4

The Pahiatua Herald. PUBLISHED EVERY EVENING. TUESDAY, JUNE 15, 1920. H.C.U. GROWS GROGGY.

British manufacturers. we are told by the cables, admit that the German \ aru-maktrs liave begun the invasion id' the English market, and are underselling local firms. The Germaius are using tops combed in France, wh.ere tile plants are working at full s]Keo ..nd producing cheaply. The week hae been lull of news from London indicating that high prices have reached a |ionk, and will now begin to descend. This phenomenon has been observed in the United States and Japan. So far it has not reached Australasia, but it will and a little holding back on the part of buyer.- of textiles and leather goo.b will aeeeutuate tin* process of bringing prices down. The sooner they begin to tall tile batter, for theie is little doubt that much of the industrial unrest so apparent in everv country in the world ie title to the pressure ol inflated prices Ihe cause of th(> tall is primal.l\ that production in great producing couuvrio* has overtaken the demand in those countries, and that, owing to high prices, th<’ rest of the world lias curtailed il.s buying order-. Iti the l lilted States the rate of exchange 7i.i» \eiy seriously affected export, and tic same thing has occurred in Great Britain. where the European money is v< rv cheap iodis'd. Kranee and Gi rinam have all the benefit ot thl— depreciated sterling ot theirs in exnortag cheaply mannfaettired goods to i i her countries. 'I lie German invas’.en ol Hiitnin teas inevitable, and must 1( lid to reduce prices in Britain unless Rritain protects herself xx il l l a tariff I helping In cheapen woolproducts i lie Girmans ill a lashion. : nd from : purelv selfish motive. may I,C d.eug a s. rv ie ■ to those ot whom s X years ago they proved thenisev.:. I Inttcrcst enemies. It i- a curious paradox The lug retail linns in Eondon arc not ]>hilanthropist s. ’1 hey declare it themselves, and »v must reluctantly believe them, lltcx have tvdneed their prices from 5 to 10 per (cut., and their managers state that they yield to an actual pressure, ami warn manufacturers that doing so gradually will avert a crash later. In J reducing prices slowly they are at ting juiselv. A sudden drop of 50 per cent in prices would dislocate trade and strangle, enterprise. A sudden ’vduet. on in the value of stocks was at the bottom of the bank bursts m Japan.

Ihe banks in Rritain and America arc refusing further advances on a market which is obviously inflated to the dan-

ger point, ami this also will tend to lower prices and greater stability. 11.C.L.. in fact, is groggy, and is receiving heavy ] uinsluneiit from aM sides. It may lie many years lvefore pi ires are down I<> fihe prewar level n fact it. is doubtful it they will ever fall in that point, again, unless ail trade comes to disaster. That, need mot. bo feared here, and a few punches from the people in the way of retiming to buy luxuries at the inflated prices now ruling will gradually bring down all prices to a, reasonable level again. So long, however, as an extra vagnut. demand continues, so will extravagant prices. It. all comes hack to tin inescapable economic law.