What then are the prospects for this season? Costs are unlikely to rise any further. The hours of workers in federated concerns were cut from 46 to 45 hours during the past year and wages increased by around 2% per cent, This would seem to be the limit for the time being. It cost the industry between 2d, and 3d. per pair made. Leather prices have been falling and in the current year most manufacturers should be on contracts made after the fall had begun, though there may still be stock losses to be met. If anything, therefore, costs should be lower. Price cutting from non-federated concerns—mainly the Bata Company—may become less. severe owing to the possibility of lighter control of ages in retail shans.
What ar" prospects on the demand side? The two quarters of this year have not been at all good, and there may, therefore, be some delayed buying. Even if there were, however, it is doubtful whether that factor could do more than offset the decline in sales that may be expected in the industrial districts as a result of increased unemployment and industrial recession. Only a wet winter seems likely to save the trade from some decline in sales, unless general industrial activity begins to rise again. If recession continues, many firms may well be forced out of business, With costs higher than during the last depression and with competition, both at home and from abroad, much keelier, any further decline in demand would have serious consequences in the absence of Government assistance,
Text read from the printed page and cleaned; old type leaves the occasional error.