Advances in Prices.
Page 6
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An Overall Increase of 10 Per Cent. is Fully Justified by Events.
The consequences of the vat: are not yet brought home to this country as they will be. The violent movements of food prices, on the 5th and 6th inst., were in the nature of a panic, and people who laid in big stores of food will ,vet have cause to regret it. The established methods of distribution have in ft large measure already overtaken the effects of local exhaustion of particular commodities, with resulting downward movements in prices. There are, none the less, clear evidences that the cessation of shipments of raw material and partly-manufactured articles from the Continent of Europe will of necessity cause definite and maintained increases of general effect upon the prices of finished commercial motors. Other manufactures will have to be temporarily suspended, by reason of failure in the supply of some essential component in the near future.
Some of our leading manufacturers felt their way with a tentative advance of 71 per eent, at the outset of the disturbance of cormnercial affairs which was experienced a fortnight ago. That advance was in most cases quickly stiffened to one of 10 per cent. We refer to the prices of complete. chassis.
Isolated cases of advances so 'high as 25 per cent. have been brought under our notice, in respect of particular supplies, but we consider it invidious at the moment to name the parties. There may have been good reasons of which we have no knowledge.
Our province in this matter is to warn owners and new buyers that they will be considering their own best interests if they can immediately place orders at an overall advance of, say, 10 per cent. upon the prices which were ruling before the declaration of war. We also express the confident opinion that any delay on their part will involve them in higher outlay for the same article. We do not go into detail, because the average owner of a commercial motor is not concerned with such detail. He is entitled, however, to some independent assurance that a higher charge of at least 10 per cent, is justified by circumstances and events, and that assurance we feel we may unhesitatingly give. We therefore give it. .