PRICES OF FOODSTUFFS

Dominion, Volume 8, Issue 2469, 24 May 1915, Page 8

PRICES OF FOODSTUFFS

DISCUSSED BY HON. A. L. HERDMAN.

(By Telegraph—Special Correspondent.) Rawene, Jlay 21. Tlie increased prices of foodstuffs was referred to by the Hon. A. L. Herdman m Lis speech here to-night. Tho Minister said the leader of the Opposition had infcveiitiallv charged tho Government with, neglect -to take measures to keep the prices of commodities down. It was a wcll-recognised axiom m economics that artificial interference with trade was fraught with t!aiiger._ Parodoxicnl as it may appear high prices in the end tended to bring about low prices, for the ebb and flow or trade was governed bv prices, and high prices in one market stimulated tlie ilow of commodities to that market and ultimately the normal price was reached. It could be said generally that all over the world tho war had brought about high prices. He had noticed in tho Press that the Commonwealth Statistician reported that the prices of food and groceries in thirty towns or Australia had had an average rise of 30.2 pcrcent. since the outbreak of the war. He had been told (but on the point he could not speak with certainty) that the average rise of prices in the same commodities in New Zealand was about equivalent to the averago Australian increase. The Prime Minister of England, no doubt after taking the most reliable advice, soma time ago refused to interfere in the prices obtaining, and pointed out to the. House of Commons that the experiment which Germain- made in fixing maximum prices brought about most disastrous consequences. It could be laid down as a general proposition that neither Mr.. Massey nor Sir Joseph \\ard could permanently keep down prices with benefit to the public. The forces at work in the economic world were more potent than those which could bo brought into exercise hy a Parliament or by a Sovereign. Notwithstanding what he had said, he would liko the people to understand that the Government had been endeavouring since the outbreak of war, and was still endeavouring, to prevent hardship and exploitation. The first step that had been taken by the Go.vernmont was to prohibit the export of wheat and flour from New Zealand (excepting to the Islands). It placed an order for 250,000 bushels of wheat in Australia; it remitted the duty oil wheat and flour coming into New Zealand from outside countries, and, further, the Government entered into an arrangement with the Commonwealth Government to allow contract flour to be exported from that j country to New Zealand. That was to ! say, the Government had arranged with Mr..Fisher, the Commonwealth Prime Minister, to,allow flour which had been contracted for prior to the outbreak of war to continue to bo sent to New Zealand. In addition, the Government had arranged with the Canadian Government for large .supplies of wheat from Canada to make good the shortage which had unfortunately occurred in New Zealand. Altogether, 400,000 odd bushels of wheat had come to Now Zealand from Canada. On discovering that Now Zealand was short of oats, the export of that cereal was prohibited, and to afford further assistance, to the people of this country a commission was appointed to investigate tho cases that wore submitted to it, and to report to the Government npon any case of exploitation that came to its notice. In extraordinary times, said Mr. Herdman, people must bo prepared to put up with some temporary inconveniences, and viewing the whole situation in New Zealand he did not think it could bo said that 'either the farmer ot the man In the city had, in view of the extraordinary conditions obtaining, been compelled to put up with any serious embarrassment.