The Waikato Times With which is incorporated The Waikato Argus. MONDAY, FEBRUARY 7, 1921. INTERNATIONAL TRADE

Waikato Times, Volume 94, Issue 14585, 7 February 1921, Page 4

The Waikato Times With which is incorporated The Waikato Argus. MONDAY, FEBRUARY 7, 1921. INTERNATIONAL TRADE

It is much too early to accurately forecast new price levels. In almost every country which enjoys an international trade of any importance conditions are very unsteady. The restriction of credits is the main factor in the immediate difficulty, while restricted purchasing on the part of the public is also having a depressing tendency in certain countries. There cannot be much doubt that Brilain is experiencing something very like a slump in tiade. If British trade had been as brisk this year as last it is improbable that the Dominion would have received so large an influx of goods on old orders as has been the case. Trade conditions at Home are evidently changing very rapidly. The British public may be abstaining from making purchases in the belief that prices must fall, though it is somewhat unusual 1.0 find the general public exorcising such discrimination. It is much more likely that a large section of the buying public is feeling the economic pressure inseparable from a depression in trade. The- British state or trade has an intimate Interest for the Dominion. if prices continue to fall, and especially if the fall is heavy, they will undoubtedly fall here also. That will not apply only to the commodities b)«)Ught by the. Dominion, but also to those which are sold. Groat Britain is our best customer, and if all primary products fall our trade, balmier may lie oven more adversely affected than is the case at present. It is, of course, certain that our imports during (lie next few months will show ;i falllng-Off, but, if primary products fall in price as a consequence of trad.' depression at Home the fall in prices of commodities cannot be an unmixed blessing. A sudden slump in prices will not be beneficial, as it would undoubtedly be accompanied by unemployment and reductions in wages. Local traders have biff stocks of high-priced goods on hand, and these must be sold before a very serious fall in values takes place. Mr P. 11. K'ellaway. speaking for the Pritish Ministry of Supply, stated that there was a good demand lor goods In New Zealand. But that demand very largely depends on our export values, and in the event Of a decline our purchasing: power must necessarily he restricted. Mr Kellaway believes that Great Britain "will recover most, it not all, the lost trade, also her un-

disputed supremacy as to source of supply." That must be regarded as a significant admission of lost ground, and when the Dornmon's enforced restriction of imports is in operation if will further prejudically affect Home trade. The effort of Australia to stabilise wool values 1b an Interesting e>pertment, for in the light of economio science it cannot be desorlbed In other terms. The Australian and New Zealand wool which is held by the Ministry of Munitions is valued at £60,000,000, and, as the Yorkshire Post has pointed out, the proposed Australian capital is not sufficient to control this. The question of price regulation and demand also arises in this connection, and the point must be ultimately settled whether the best interests of the wool-growers and the Dominions are served by a policy of restricted sales. The Yorkshire Observer cannot see why the British Government should countenance a monopoly arrangement over Australian wool when i", would penalise wool users by substituting an artificial value for an economic value. We believe that the best solution for the wool difficulty is that which we have already urged—that the demand must be stimulated and not retarded. Wool will continue to grow, and it is In the best interests of all that it should be used and not stored for a longer period than is absolutely necessary. The question of international credits is allied to such a solution, and it is significant that Increasing attention is being devoted to this aspect. America has sufficient wool in store to supply her needs for two years, and it is estimated that 95 per cent, of the presenl year's clip is unsold. The woollen mills are working short time and wage reductions are taking place. It is obvious that unless international credits can be arranger" the wool so badly needed by some countries must remain in these countries which are anxious to sell It. It is also fairly clear that no single country—not excepting the United States—can undertake the work of reestablishing international credit so that trade may once more follow something like a normal course.