FOOTWEAR PRICE RISE

Taranaki Daily News, 8 November 1935, Page 4

FOOTWEAR PRICE RISE

ADVANCE EXPECTED SOON EFFECT OF THE BUTTER MARKET. INCREASE IN COST OF LEATHER. POSITION OF TANNING INDUSTRY. An unwelcome result of the rise in prices of New Zealand dairy produce has been a rise of 10 per cent, and more in prices for New Zealand and imported leathers. As soon as present stocks held by footwear retailers are depleted, rises varying from Is 6d to 2s 6d and even more can be expected in the price of boots and shoes. From inquiries made among New Plymouth retailers yesterday it has been ascertained that sudden rises were announced by wholesalers within the last few days and orders previously placed Lave been increased in price by considerable margins. One retailer showed: a reporter a letter from an Auckland wholesale firm in which it was stated that the increases were wholly unavoidable and must in consequence be passed on. The natural effect is that retail prices for boots and shoes will rise just as soon as the present stocks on shelves are sold. It is expected the first stocks to show the effect of the increased prices will be working boots and cheaper classes of shoes, which are likely to la increased in price by at leas* Is 6d. Higher grades of articles will be proportionately affected and on the best shoes prices will probably increase by more than 2s 6d. The position, in the opinion of one retailer, shows how thoroughly the agricultural industries affect the whole community. The higher dairy produce prices since the end of July have resulted in efforts by farmers to secure the maximum of production. Consequently, it is stated, the annual culling of old cows in herds has in most cases not been done and stock placed on the market has shown a decrease.,

The shortage of stock sold is believed by the retailer to have adversely affected the leather trade to a considerable extent. Depending as it does so much on the annual culling of herds for leather, the tanning industry has received short supplies and prices have risen accordingly. In addition, the fact that the 25 per cent, exchange' is favourable to exportation of New Zealand leather has resulted in large quantities being sent to England, one Auckland firm sending away 600 sides a month. New Zealand supplies have thus been reduced. Although the rise in price of New Zealand leathers is so definite, imported leathers have also advanced by in some cases as much as 25 per cent. One line particularly affected by the rise is cheap glace kid, imported in large quantities from America, which has almost a world monopoly in the line. What is of great concern to New Plymouth retailers interviewed yesterday is that, though dairy produce prices have risen so remarkably, the effect has been unnoticed on the community. Even if butter prices are stabilised at a good figure, the effect, the traders consider, is unlikely to be noticed for some time. Over a period of years people have been affected rather with the price complex than with the quality complex in buying and the expected rise in the price of footwear will certainly be noticed by the general public.