BUSINESS IN GISBORNE.

Gisborne Times, Volume XXVII, Issue 2428, 17 February 1909, Page 6

BUSINESS IN GISBORNE.

DOES DEPRESSION EXIST? SOME LEADING OPINIONS. There has been some vague talk in Gisborne of late hinting at stagnation and depression dn business, and a “Times” reporter yesterday endeavored to exactly ascertain the existent state of affairs. Enquiries were made from reputable business men, and from their conversations, which ai'c briefly given below, there appears to be Rome confirmation for the statement that trade is in a scale of dulness. The opinions given are somewhat diverse, but they all agree in the respect that none hold the present position to be much more than a temporary set-back, though it is considered possible that it might continue to exist for some time to come. '

One prominent land agent stated that the present position was most unsatisfactory, and that the outlook for the ’ immediate, future could certainly not be called iinviting. There was a very noticeable want of ready money, and any person with money to invest would have no difficulty in obtaining 7 per cent. The banks were acting with extreme caution, and it was difficult to sell property owing to the inability to obtain satisfactory financial accommodation for clients. - There were few houses or business premises in town vacant, the agent said, but rents were being paid in an irregular fashion, and it was evident that, the community as a whole was feeling a financial strain. It was possible that it was only temporary, but he did not care to hazard an opinion as to the probabilities of the future. The head of a commercial house also expressed a similar opinion to the reporter. His firm, lie said, had found the property market very weak oi; late. Few properties had changed hands since New Year, buyers being palpably afraid of taking a. big monetary- load upon themselves, and the financial institutions being equally cliarv of accepting any great responsibilities. The most satisfactory feature to him was that although there was little demand in the salevards for stock, a number of good private sales had been made, sheep being principally inquired for. A leading merchant, in answer to an interrogation, gave it as his opinion that the general retail business was suffering the relapse usually to be anticipated after the Christmas and New Year celebrations, but he saw no real cause for alarm, at all events as far as the shopkeeper was concerned. It was true that there was little ready money iu circulation, and that much of the business done was on a credit basis, yet he thought the period of stagnation which was claimed to be in existence would at its worst be only temporary.-- Situated as it was, with a magnificent back country, and being the only town of importance through which all the money must pass, Gisborne, lie considered, would never be reduced to the financial straits which have severely -affected the commercial life of other towns of the Dominion.

A -grocer on whom the reporter called said that he found business very poor in comparison with what he considered it ought to be. Of course his class of business suffered less than that of many shopkeepers, for people had to purchase the necessaries of life, but the lack of ready money in circulation, and the desire of customers to purchase on credit, was a serious obstacle to business. He attributed this state of affairs to a reaction after the Christmas and New Year holidays, followed by two race meetings. He also considered that the great rash of theatrical slio-ws which Gisborne has experienced of late was the means of taking away a .good quantity of money from the town. There could be no doubt, this tradesman said, that shopkeepers were feeling the strain, and 'he failed to see any immediate prospect of improvement.

Perhaps, one. of the best indications of the state of a town’s business is the ability of the people to purchase luxuries, suck -as jewellery, which, of course, can only be regarded as such. A jeweller remarked that trade dining the last few weeks had been very dull. A good quantity of money had been spent tat last Christmas—though not so much as at Christmas of 1807 — and he opined that people were exercising more caution. His repair department was, of course, keeping well up, hut although his sales were not so frequent as formerly, he had, no reason to believe that the sale of “luxuries” was on the decline.. He admitted there was a shortage of. cash, and said that there was a growing disposition among his customers to shop on credit. His experience, he believed, was also that of the other jewellers. -- The head of a drapery firm informed the reporter that as far as his business was concerned —and he thought the remark was applicable, to the other drapers—business was quite as bright as formerly. At the present moment things were somewhat slack, hut he explained this by the fact that it was “between seasons” — too late for selling summer goods and too early for winter purchases. _ His cash trade was being well maintained, and the past year had been for his firm as successful as any previously experienced. He expressed the. opinion that the wail about depression was hardly in -accordance with fact, and he deprecated it as being detrimental to the commercial welfare of the.town. If the tradespeople, he said, would only look on the bright side of trade, instead of deprecating it, there would be less talk of stagnant business. The first few weeks in the New Year were net, of course, the best for any class of business, hut he felt safe in saying that, as far as the drapers were concerned, they had hut little cause for complaint. “Well,” said the reporter, “if appearances count for anything, your remarks should be correct, for you don’t look particularly mournful.”

“No,” said the (gentleman, “and! 1 don’t feel it. Wo have been in business here for a 'number of years, and there will require to be more depression than what there is at present to .put us or any any other draper out of existence.’’