YEAR OF FALLING VALUES

Waikato Times, Volume 100, Issue 16812, 2 June 1926, Page 5

YEAR OF FALLING VALUES

• ♦ —-—- — EFFECT OF GOLD STANDARD. A MORE SECURE FOOTING. (Times Correspondent.) WELLINGTON, Tuesday. A year of steady falling in values, where these values arc measured in pounds sterling, was the summing up of the past 12 months’ business by Air W. D. Hunt, at the annual meeting of Alessrs Wright, Stephenson and Co. to-day. He said lhat there could be little doubt that this failing in values was the result of the British Empire returning to the gold standard. This was a notable event in the financial and commercial history of the Empire, and the fact lhat the Empire could return to a gold standard and maintain it in such a short lime after the Great War was evidence of the Empire’s financial strength and stability. It was a matter of congratulation, as it put everything on a more secure footing and enabled the future to be looked for with more confidence. It is seldom that anything worth while can be obtained without paying a price, and the Empire has not gone back to the gold standard without paying. That price has been a steady fall in the value of most commodities when measured in sterling. This fall in tlie general level of values measured in sterling has been approximately 13 A per cent. Values when measured in dollars, have not fallen at all. The dollar has been on a gold basis for some years. The pound sterling now exchanges with the dollar at its par value, whereas for some years since the war it has been at a considerable discount. While there has been a fall during the last 12 months in the general level of values, when measured in sterling, of approximately 13 i per cent., this fall has not been uniform. Some linos have fallen to a very much greater extent than others, and certain other lines, rubber being a conspicuous example, have risen very much in value; but when all things are taken into consideration together tlie general level lias fallen. In New Zealand the interests of Hie farmers and the export trade generally centre round the values of farm produce. In these wool has had an enormous fall. The season 1921-23 saw wool at the highest level ever obtained by New Zealand. The fall that has taken place since, measured in price per pound, is the greatest fall in the history of wool, but notwithstanding this great fall the prices of 1921-25 were so high that wool is still selling at,quite a reasonable price when compared with the pre-war standards. Alutton and lamb have also met with a heavy fall, continued Air Hunt, and so have tallow and pelts. The whole of the sheep industry has, in fact, suffered severely. Dairy produce, on the other hand, has maintained its values well. Certainly a year ago dairy produce was on a lower level than all sheep products, but there has not been the same room for the fall that the sheep industry has met. Notwithstanding the fall in prices, wool, mutton and lamb are still selling at quite reasonable figures. Certainly pelts and tallow are very low, but taking everything into account Hie outlook for the sheep industry is quite sound and healthy, and the same can be said for dairy produce.