PRICE OF FOOD.

Dominion, Volume 1, Issue 34, 4 November 1907, Page 5

PRICE OF FOOD.

PROPOSED STATE REGULATION/ VIEWS OF MERCHANTS! [BY TEIEGHArn.—MESS ASSOCIATION.]' Auckland, November 2. 'flip probable effect of the Bill introduced by tho uovornment with,a view to'prevent excessive prices being 'charged for various articles in daily use, was discussed by a reporter with representatives of leading business i firms to-day. •: ; !;■ "Australia can always produce wheat and Hour chnapor than New Zealand," .raid Mr. {'■ .'>>*«?,- of the .-Northern Holler- .Flour Mills,- ' owing to land,, labour and railage being much lower, and.: a higher price ruling lor' iho by-products 'of (lour, bran, and sharps. Tho Commonwealth -was- -seriously ■ ooiißidcring ■•the nrgoht' noe'd' of offering a bonus to oncourago. the evportation of flour to open up its immense' Wheat area.". In Jiow South Wales alone there arc. 20,000,000 acres waiting for the li<;ht plough 'to scarify. This land can bo had for. from... £2. to £3 per aero, with low railage, .etc.j'with. which tho New Zealand wlioat-groWe.r- would never bo able to compete. Tho Australian.export prico.for flour was.always',from: 10s. to los. por ton below its local, price, /assisted by tho high prico always ruling, for bran anil 'sh'avps'aiid the proposed■ bonus on llbiir. How .would tho nvcrago price be arrived at to guide our Court!' It was the thin vend of i.t-Uc wei}so;and woiild soon bo applied to all industries .'such as hoots, clothing, otr., beciuipo the farmer and his labourer, Wfluld demand it, and why dioiild they ? I notice," added Mr. Virtue, ''bread is omitted, and I,why F" • ■■ . ■ ■••■' .■. ■■ ■■■.' PRICK OF-POTATOES. "The Bill," said Mr. Gunr.on, |[ 'is'tho result of tho long and-continued agitations against the inevitable increased cost,of all food stuffs. Potatoes during 1903 Vero at an abnormally high'price owing to what might 1)0 called .the., absolute failure,, of tho crops throughout 'the Dominion. This was duo to the (lir.astrous effect? wjiich followed .the blight, then so prevalent. ..".Our sup.plies were drawn from Tasmania,..where, owing to very light crops last year,'prices were high throughout tho season. It was then simply a question of supply and demand. Any proposals along tho lines now indicated would not in any way affect values nor could any steps taken under the, proposed ljill in any way, lower costs. Merchants::.must" base their calculations at all times on costs, ar.d if these are high such prices mint necessarily be passed on to the consumer. 'During tho present season, 1907, potatoes until the present have boon standing' at' what might be termed a comparatively low figure. From March to September, the- average-prico would not'.ixceed £3 per ton'. Dunhg tho last, fow weoks, owing to tho. continued drv weather in Australia, price-.! have advanced', very much, and a3 our.stocks in the Domi'ii--ion are oxtremcly light—barely .sufficient- to': carry us to th'iv end of the yw.rj' w'htMV'.Che.' new potatoes will , bo available—bur prices ha'vo advanced right up tn the level of ■■thecost of importations. Taking- tho prico.;of potatoes over aserios of year's; 'tho.ups'i'and downs of tho maiket have.been. Rocountecliifor entirely by supply and: dertuiud, ,iiii(l,in..''.no' way, as indicated above, would, the provisions of the present Kill havo aftoctod values: ,;,owing 'to-the wide sources of supply and tradecompetition being'so keen,'it is unlikely,; ai: any time that potatoes could be.,-held/and, cornered, particularly ,as .they., ar'e'i subh". ,-a. perishable article. As far a:s 'wheat is con-, cornod, the present condition is brought about entirely by .what might bo called a i world., famine in this cereal. Much, if "not all, 'tho" present agitation arises out of the fact that tho position is not fully realised."

A CHRISTCHURCH PRESS. OPINION. [BY TELEGIUriI.— OWN COBMSrONDENT.] Christchurch, Novombor 2. Roferring to tho flour and other products monopoly Hill, the "Press" remarks:— The wholo measure seems to us a ridiculous attempt to tinker with the course of tho markets, and to sot aside laws which the Government are as powerless to alter as they are apparently unable to understand them. If tun Government think the duties on flour, whqnt, and potatoes, are mischievous, they should bring down a Dill to repeal them. That might, or might not, be judicious in the interests of the country, but at least it would be a plain "straightforward course, and v/e should know* what we wore doing. If tho present Bill is carried into law an element of uncertainty will bo introduced into prices, and this uncertainty will bo for tho good of nobody. The principle of allowing the Government to interfere with tho tariff without the direct, siuttffi'rity of Parliament is inherbntly vicious,'.and should bo resisted. At the, present;time,.prices cannot, be raised in. Now Zealand above the level at which it would pay to import; the goods. Tho most that,tho Bill could do would he in a time of scarcity to lower the price by tho' amount of the duty, which, after all, is a (small amount, ]s. per IUOIb. To achieve this result wo go to great expenso in making inquiries. We introduce' a vicious principle into our legislation, and an unsettling influonco into our trade. Tho talk that has already taken place about abolishing tho duty on wheat and flour - has discouraged many farmers from sowing wheat, and has done' more, mischief in thus tending to bring about a local scarcity with consequent high prices than any Bill brought in by tho Government could put right. The time would seem to bo fast approaching when members of tho House of Representatives ought to ho compelled to pass an examination in tho elements of political economy and tho rudiments of commorcc.