GOODS FROM JAPAN

Taranaki Daily News, 14 February 1933, Page 7

GOODS FROM JAPAN

GREAT RISE IN PRICES. PRACTICALLY ALL CLASSES. Dunedin, Feb. 9. Importers have been notified of a somewhat startling increase in the price of practically all classes of goods that come to New Zealand from Japan. A circular just received by a Dunedin firm asks for confirmation of its orders at the higher rate, “as it is impossible to contract for delivery at prices quoted previously." Examples of the increase are: Glassware, 30 per cent.; dinnerware, 55 per cent.; tricycles, 48 per cent.; porcelain' and earthenware, 45 per cent.; bicycle parts, 56 per cent.; cotton goods, up to 108 per cent. Explanations are appended, including the following: “Up to December, 1931, prior to Japan’s going off the gold standard, its yen was nominally worth 2s Id. It rose to 3s Id and New Zealand buyers operated freely. In December of 1931, Japan went off the gold standard and its currency depreciated until it reached the present level of Is 3d. If an average of 50 per cent, increase be assessed over the whole of an order, it will represent an increase in the yen value to Is 10Ad, which is still below its par value.” The writers go on to give other reasons for the advance. There has been an enormous influx of orders, clearing the market of stocks, and with the yen so low replacement costs are abnormal. Again, Japan has to buy most of her raw material from other countries in depreciated currency, and another reason is that England and America have been placing enormous orders.