IMPORTERS FEAR CURTAILMENT

Southland Times, Issue 23792, 14 April 1939, Page 8

IMPORTERS FEAR CURTAILMENT

WHOLESALE SUPPLIES SCARCE CENTENNIAL EXHIBITION GOODS NOT BANNED (United Press Association) WELLINGTON, April 13. So far retail stocks of foreign-made goods have proved sufficient to prevent the consuming public from feeling the effect of the import licensing legislation, but in many lines there is a serious shortage of wholesale supplies. Importers are, with minor exceptions, still completely in ignorance of what will be the exent of the restrictions during the second haff of the year and many merchants- whose opinions were sought today, expressed a general fear that further drastic reductions would be made. This, they said, would result in an acute shortage of goods for the coming spring and summer season. Even if the restrictions were continued on the same basis as for the first half of the year the retail market would be seriously short of many lines from about September or October onwards. From the few licences so far issued for the June-Decem-ber period. it is indicated that no restriction is to be placed on goods having a direct connection with the Centennial Exhibition. One merchant who desired to obtain a supply of English-made souvenirs such as serviette rings, book markers, brooches and so on bearing the Centennial badge ordered more than he wanted in anticipation of a cut, but when he received his licence a few days ago he found the whole quantity had been allowed. Support for the general fear that greater restriction will be imposed during the second six months is contained in a grqup of second period licences received by an importer of chemists’ supplies. The reduction on toilet preparations such as face cream and skin lotions has been increased from 30 per cent, during January to June to 50 per cent, for the second half of the year. No restriction has been placed on bandages, lint, surgical instruments and similar lines. Wholesale agents for American washing machines are said to be completely out of stocks with no prospect of obtaining further supplies. One general manager said he would have to reduce his staff by half within the next few months unless a miracle occurs. As far as employment was concerned, he said, not only the wholesalers but retail agents throughout the country would be affected by a lack of supplies. One of the principal topics among importers has been the persistent rumour that the Government intends to jettison import control in favour of an increased exchange rate. Several merchants said that they, would infinitely prefer such a change to the present system with its irksome interference with all their overseas buying operations. They would then have comparative freedom in spending their money. “The Government would have been ever so much wiser if, instead of embarking on an irksome import control policy they had acted as did the previous Government when it was faced with the depletion of the London funds and raised the bank rate,” said the principal of one ox the largest firms operating in Wellington. “That would have restricted bank overdrafts and the position would have righted itself in a few months as it did on the previous occasion.”