FALLING‘PRICE LEVELS

Taranaki Daily News, 28 August 1930, Page 7

FALLING‘PRICE LEVELS

GOLD VALUE THE CAUSE LOSS OF BRITAIN’S SUPREMACY. EMPIRE TRADE' THE REMEDY. . ■ 1 (By Wire. —Special to News), ,'y Hamilton, Last Night. A strong plea for increased trad® within the Empire was made by Mr. W« Goodfellow, managing director of the New Zealand Co-operative Dairy Com-, pany, speaking at a large gathering of the company’s committeemen at Hamilton last night, when dealing with the relation of the gold standard to Empire trade and its influence on the price of primary products. It was generally supposed, Mr. Goodfellow said; that the main cause of falling prices to-day was over-production. Over-production certainly had something t> do with lowered prices. While he. predicted that during the next ten years the producers of this country would have to fight for their existence, he was not pessimistic as to the future. He was satisfied that when it came to a “show down” New Zealand could produce but-ter-fat at a lower cost than any country in the world. This was a great consolation. If the various countries now producing were to continue to increase their production, it was certain that sooner or. later some other countries would have to go out of the’ trade. ’■ He regarded as the chief cause, of-the fall in world prices the increasing value of gold. He quoted very telling figures tp show the changing location of the gold accumulation, and said that in 1923 the accumulation of gold in the United States was 392 millions sterling, while in 1929 it had grown to over 800 ./ millions. In France the amount of gold in 1913 was 304 millions and in 1929 this had grown to over 350 millions. ~ BRITAIN’S DEPLETED GOLD. On the other hand, the gold in Great Britain ■ had fallen from 150 millions in 1913 to 146 millions in 1929, and Germany from 184 millions to 112 millions. Significant facts were that' the United States had more than twice as much gold as before the war, that France had increased her- stock by 10 per cent, since 1913 and 71 per cent, since 1927, and that Great .Britain 1 and Germany had in December, 1929, less gold than before the war. ...... Considerable difficulty had been caused owing .to the fact that, the gold absorbed by . the'United States and Franco hjid been more or less, sterilised and was not in circulation or used asjra basis of credits. The Bank of France was apparently aiming to make Paris the money centre of Europe. The British Empire- as a whole had lost a considerable amount of gold since the beginning of the war. The effect of this was that there was not sufficient gold in the Empire to finance Empire trade at high prices. Mr. Goodfellow pointed out that , while the population of the world had only increased at the rate of 1 per cent, per annum during the past eight years, production had betwdeir 'the years 1923 and 1927 increased by 3 per cent, per annum, or 15 per cent. 1 During that period the world’s gold production had only increased by 1% per cent, per annum, and tlie Empire’s 'gold had decreased by 10 per cent. Tlie value of Empire primary products since 1925 had dropped 45 per cent. The question was how’ they were going to overcome this difficulty, which was very real? There did not appear to be much likelihood of the' British Empire getting gold. Britain owed th© United States 100 millions sterling and Europe owed Britain approximately the same amount. Britain was in the position of a debt collector for the United States, but whereas Britain accepted her debt from Europe in goods, which created unemployment in Britain, America has erected a high tariff wall against British goods, which forced Britain to pay her debt to America largely in gold. This shortage of gold was one of the 'main causes of the all-round fall in prices. THE EMPIRE’S ONE REMEDY. There was, said Mr. Goodfellow, only one way to overcome it; that was by purchasing fewer goods from, foreign countries. (Loud applause). The Empire (including Britain) spent annually 2209 millions on imported goods, of which only 900 millions was spent with Empire countries. The obvious remedy for the difficulties was to buy more goods within the Empire. (Applause). Leading industrialists in the United Kingdom had realised the difficulties of the 'position and had come to the conclusion that free trade would no .. longer do. They realised that the Mother Country would have to fight for her commercial existence. America controlled the financial situation of the world, and it was obvious that the policy of Britain would have to bo changed. The industrialists’ efforts were directed towards inducing the Government to reconstruct the whole system of duties, and it was. quite probable that during the next few years th* British Government would impose a duty on all foodstuffs, with a preference to those produced within the Empire. The bankers of England, who were . notoriously conservative, recently decided to support this policy of protection. This was the greatest movevment that had yet been made towards the change. It was also known that the Labour movement (not the political party) now favoured protection. The rank and file in England were clamouring for protection, with substantial preference for Empire goods. ’ ■ _ The speaker reminded his audience that whatever was done to make the Mother Country more prosperous would be of benefit to the Dominions. It was therefore the duty of all, of them to support this policy.

A very large number of bargains in Men’s and Boys’ Clothing is to be found at Broome's Winter Sale. . Thera are boys' fleecy-lined singlets, all sizes, at 1/6, boys’ coloured handkerchiefs, four for Is, boys' sports suits, all wool, at 20s 9d, boys' blazers, with white, red or gold piping, at 7s lid for all sizes, men’s wool socks, three pairs for 2s 6d, men’s all-wool saddle tweed trousers at ,16s 9d, men's oily canvas coata, at 29s 9d, men’s felt hats, at 7s lid, mens cleared at 59s 6d. All these Bargains ar® worsted suits, worth £5 10s, all to ba to be had at Broome’s Corner, Devon and Liardet Street. *