REVIVAL IN TRADE

Stratford Evening Post, Volume IV, Issue 38, 24 January 1936, Page 8

REVIVAL IN TRADE

! More Spending Power —- Bonos To Unemployed. i i OPINIONS OF RETAILERS. | [Reviewing the Christmas trade and ! its increased turnover, the traile organ of Drapers, Clolhcrs, and Root detn'ins states that “at long last the worst of the slump w»ll past, ami we may look with con fit!cnee for a returning tide of prosperity, with a progressive growth of heller business until returns approximate to pre-depression days, unless sonic disastrous development in local or world affairs occurs to check 'recovery.” j Christinas shopping in almost every department is reported to have shown a wonderful and inspiring revival of hope, confidence and goodwill, which promises everything for the host in the immediate future, and an end to Iho o feelings of fear and uncertainty which were responsible to such a large extent for the falling off in business which followed the unnecessary tight-

ening of the purse strings and hoarding by those who could and should have been spending in a normal manner. The distribution by the Government of tbo substantial Christmas bonus to the unemployed is commended a,, setting a good example, the money passing into rapid circulation; in fact, states the journal, it acted like a stone thrown into a stagnant pool, and the ripples of trade created grew and expanded in everv direction. Much of it is still circulating, and will continue to do so while who receive it spend in their turn . . . "The wonderful effect of the free spending at Christmas,” continues the article, “confirms cur considered opinion that the velocity with which money circulates is a far more potent factor in the business life of the nation and in the exchange of all goods and services than the quantity of money which is created or available. Every business man has realised than -* quick turnover of goods a( a small profit is far butter trading than a slow turnover at high profits." Quotations from the federation’s journal may bo of general interest, because it should represent the opinion of an important section of New Zealand business, that concerned with the clothing of the community. In its opinion the outstanding problem which the new Government has to solve, in a manner which shall be both round and lasting, is that of restoring the spending power of the people. Wool is again showing a welcome rise in price, and dairy produce Is recovering rapidly from the depressed prices which followed a false and forced inflation. “No doubt much of this added income is hypothecated by creditors’ claims on r.l.d liabilities,’ concludes the article, “and business generally is not i,-ning to benefit if these enhanced returns are fra? n again instead of a fair proportion being free to go into general circulation in providing goods which the producers by now ma t stand sorely in need of. ”