THE MANUFACTURERS’ PART.

Timaru Herald, Volume CXXXIV, Issue 18818, 5 March 1931, Page 11

THE MANUFACTURERS’ PART.

' MEETING THE MARKET. 1 (Contributed). There are encouraging indications that the tide of commercial adversity has turned, and that the flood will sweep forward gradually to a satisfactory level of prosperity. New Zealand butter on the London market has risen during the past fortnight from 112/- to 124/-. Our cheese is also slightly higher in price. The last Wellington wool sale recorded anadvance of a half-penny on some grades of wool. These facts are significant to New Zealanders, for the prices of dairy produce, wool and meat are the barometer upon which our commercial and industrial well-being depends. Economists assert that a period of depression is often healthy, or at least is essential for industrial health. It restores the proper balance of the industrial organism. Whereas a period of activity ?.$ often one of prosperity in appearance more than in reality. This Dominion is now in a position to test the accuracy of this theory, for it has passed through an era of amazing prosperity and now has emerged into the most disastrous “period of depression” in its history. The next three or four months should prove whether the test by fire has restored our industrial health. The signs are propitious, and if our captains of industry and of commerce read them aright and act on them with confidence there should soon be an improvement to record. There is a natural tendency in a crisis for business men to hesitate to engage in new enterprises, and to be cautious in the conduct of the old. Those who are still doubtful are reminded of the Prime Minister’s assurance that “given the support of all sections of the community it should not be long before the economic machinery is back into good working order.” Merchants and manufacturers can give this support by a definite lowering of prices. Appeals to retailers are apt to fall upon deaf ears if the prices of their goods at the source are maintained at present levels. It is well known that in some businesses not affected by awards of the Arbitration Court wage reductions have been enforced for some time, yet the prices of their goods and sendees do not appear to have fallen to any appreciable extent. With the almost certain prospect of awards being reviewed by the Court, it is reasonable to expect that all businesses concerned will gladly adjust prices accordingly. It is possible that there are many people in every community prepared to take advantage of lowered prices. The periodical sales conducted by various firms prove that that tendency needs little encouragement. Hence it appears certain that a wide field is offered to the manufacturers and wholesalers to reap substantial benefits and at the same time do their share in restoring normal conditions.