HOW THE REPORTED AMERICAN SLUMP AFFECTS NEW ZEALAND.

Wanganui Herald, Volume LIII, Issue 160814, 23 November 1920, Page 8

HOW THE REPORTED AMERICAN SLUMP AFFECTS NEW ZEALAND.

(Published by Arrangement.)

America has been recently doing a considerable importing business in textiles from Great Britain, in spite of a high duty, expressly designed to keep them out. Consequently one can R»m a pretty correct idea of the high prices of goods that have been ruling in U.S.A. —than in England. To bring textiles oh a par with British values there bad to be a drop in prices. Further, if they fall below British prices, the rate of exchange, now approximately only 13s 9d for the nominal ,£1 sterling, would still prohibit us from importing from U.S.A. U.S.A. prices would have to decline 40 per cent, below British to make >*iem compare with the Home country. Therefore, Britain and not U S.A. is the country we have to look to when deciding to what extent any decline afects New Zealand.

Supplied by Wanganui Drapers and Clothiers’ Association.*