SENSATIONAL SLUMP.

Wairarapa Daily Times, Volume 46, Issue 14127, 27 May 1920, Page 5

SENSATIONAL SLUMP.

“NOT AT ALL SURPRISED.” DEAR MONEY THE CHIEF CAUSE. Mr Harold Beauchamp (chairman of tho Bank of New Zealand), interviewed by a New Zealand Times’ representative yestqrday, made an interesting and important statement with reference to the recent remarkable slump in prices which has taken place in America the United Kingdom, and the Far East-a slump which Mr Beauchamp had predicted some two or three months " C “I am not at. all surprised,’ said Mr Beauchamp, “to notice this slump which has already occurred m the yiiue of certain- commodities m both th United States, Japan, and Great Britain. It was, indeed, only to be expect ed in view of the restrictive policy that has been pursued by banking institutions as a whole and the high rate ot exchange, coupled with the fact that many important industries are now so largely increasing their output. 1 think that these three factors are, to a large extent, the cause of. th» slump. But no doubt dear money is the chief cause of the fall in prices in the dii-. ferent countries I have mentione . “So far as this count;ry is concerned after the lifting of the commandeer, I fancy that wo shall aiso see a substantial drop in many ot the pn marv products in which wc are interested; and this will doubtless assist the people who arc at present feeling the pinch in respect to the high cost of n ina Of ■ course, we are all awaitin, o wifh interest the result of the conference that is to take place to-morrow between the representatives ot the freezing companies and the Government iii" reference to ,vhnt the porihon be with regard to frozen meat after June 31st, the date when the cominaudeerf comes to an end. That question is giving: rise to a great deal ofi anxiety on the part of the freezing companies; and I have no doubt that some solution will be found by which the producers in this country will su to no very great- extent. But it is quite obvious that they will have to Riok for very mych lower prices m regard to stock—stock on the hoof, I mean— than those ruling the past tew to wool, I am not surprised also to note the drop that has occurred m America and elsewhere; but that will apply principally to coarse crossbreds, of which large stocks were held b> the Imperial Government, that bein 0 the quality of wool so largely used du,rin„ tho war for military clothing. Of course, there is a very large quantity of wool yet. to be got rid of. I know what the quantity is; but there will be some 1,250,000 bales m Australia and New Zealand In addition to this, there are large stocks in En ? land, but a portion of these stocks hare been transferred to New York and Antwerp, where at recent, sales there ihas been a fall in prices, as cables- Ijave indicated.”