BOARD OF TRADE

Dominion, Volume 12, Issue 39, 9 November 1918, Page 9

BOARD OF TRADE

ANNUAL REPORT WHEAT, GROCERIES AND MILK The. second annual report of the Board of Trade was presented to Parliament yesterday. Tho report covers the year ended March 1)1 last, and deals with many subjects. Tho board mentions that it has paid special attention to tho high price of commodities, and lias investigated U0 complaints. Adjustments of prices have been effected in certain cases. Home 478 witnesses were examined by tlio. board iu connection with the inquiries made. The Wheat Purchass. The board discusses at some li'iiglh tho wheat; purchase, and tlio Government control of tho wiieat. market. "Comparing the period of 1017 with a similar occurrence iu 101U," states the report, "the board points out that in 191U, in tho absence of Government unntroi of the wheat position, ilour prices advanced in a few days by £3 per ton (viz., from ,£l2 f.o.b. Lyttclton to Mb at the same port), although there was enough wheat, in vjic Dominion, according to the returns of tho Government Statistician, to meet normal requirements until the end' of February, , ,1917. During 1917," says tho board, "through anticipation of the fact that Now Zealand was on the verge., of an actual shortage, the steps taken by the Government to control the price and augment the supply by a Government purchase kept flour' constant at a fixed price, and undoubtedly saved tho consumers of tho country during :i period of four months at least, on a comparison with Wlit, S E3 per ton on our consumption of flour—approximately iM.UOO. The details of the financial transactions in connection with this wheat purchase are given in an appendix to this report, and show a net loss of £WW 17s. 5d., which was necessitated by tlio decision of tho Government to charge only such prices to millers as would allow diem to conform with the gazetted prices for flour and oft'als, and, the board submits, was amply justified in the excellent result achieved by stabilising the prices of flour and bread, and preventing a food 'panic on the part of the pubhu. f'Had the Government not guaranteed a prico for the 1917-13 crop it is highly probable that little wheat would fliav'e been grown in New Zealand, on account of tho fact that the farmer can secure better returns from other agricultural and pastoral products, and the Dominion would have had to rely for its requirements mainly on importations, thus putting an unnecessary burden on the shipSing spaco and thereby adding to the ifficulty of a position already acute. > In so recommending the Government tn guarantee a prico the board , anticipated the policy of tho United States, the Canadian, and the British Governments. As Australian wheat fit for milling at the time of the guarantee could not be landed in New Zealand under ss. lid. per bushel, even if sufficient shipping space were available, the price guaranteed by the New Zealand Government to the New Zealand farmer under these circumstances muot bo deemed to be reasonable. That the : policy, in dealing with the wheat situation was appreciated by the farmer is evidenced by tlio fact that in response to tho guarantee 293,000 acres jwere sown in wheat, tho largest area, with tho exception of one year, sown sinco 1910. The miller has benefited by the scheme, as he 'has been assured of supplies for gristing; and tho consumer has benefited, as to-day he is purchasing flour and bread at cheaper rates than in any other country in the world with the exception of Australia. Unfortunately, the harvest did not roaliso expectations, on account of the unfavourable weather conditions, irtiich lasted from December to March, and the board liad once again to recommend the Government to import Australian wheat."

Price of Groceries. The iboard details the efforts that havo been made to control the price of groceries. Power had been taken by the Government to fix maximum prices for any class of goods. Tho board decided under tho provisions of this regulation 10 devise a scheme for restricting increases in prices of groceries, and after full consideration it was considered inadvisable to adopt generally a policy of fixation of prices by Gazetto. notice, owing to tho frequent 'and exkaordhiary fluctuations in prices that occurred, due to war conditions, and quite beyond tho control of. the marchants concerned. In order to furnish tho board with information as to the cost of wholesale grocery prices committees of merchants wore formed in each of the four centres to act as nn advisory body to the board, these committees, to meet when necessity arose to consider prices and to adviso the board, with full reasons for any alteration, and after full consideration of the reasons advanced tho 'board to decide whether the increases are justifiable or not. Tho board therefore decided to control tho following inoro essential commodities for the time being, and to add to the list from time to time as deemed advisable:—Bacon, butler, pearly barley, cornfloiw , , Mgo, tapioca, tea, coiVeo, cocoa, coudoiised milk, sugar, jiiih, honey, golden cynip, treacle, raisins, currants, rice, sultanas, canned apricots, canned pears, canned peaches, prunes, evaporated apricots, .evaporated apples, dates, calmon, herrings, tomato sauce, Worcester sauce, salt, pepper, baking powder, croam of tartar, carbonate of soda, starch, blue, soap, candles, kerosene, matches, tobacco, cigarettes, mullet, canned meats.

Tho prices of the goods detailed in the list were fixed on March 1 last, and all alterations in prices have since been subject to the Uotu'cl of Trade's consent. It is exceedingly difficult at the present time for the board to prevent" increases in the prices o[ imported articles, as the increases are mainly due to the overincreasing Home cost, freights, marine insurance, and outside charges over which the board has no control.

In addition to tlie arrangement effected with wholesale merchants, it was decided to brins nianfnctnirovs and puckers of commodities inilirated'on the grocery list under control. The manufacturers niul packers concerned comprise those dealing iii pearl barley, condensed niilk, jam, honey, treacle, golden, syrup, condinieuls, baking powder, starch, soap and candles, canned fruits, ami canned meats. As is the case with merchants, these manufacturers are required before raising prices to submit full statistical data to the board to justify increases proposed, and to oMn.in the board's consout 'before do> ing so.

Very little trouble was experienced in tlio control of milk prices throughout tho Dominion, and generally prices have been fair ami reasonable (luring tho period under review. In Wangiinui the bonr<l fixed tho maximum wholesale price of milk at tho farm gate at Jld. per gallon, mid Sd. per quart delivered. Later tlio Ordor-in-Council was amended by providing that the price of milk should be lid. per gallor. when sold and delivered within (lie Wangaiuii district, or 10d. per ftaiiou when sold and delivered at the dairy farm on tho usual trade terms. In Wellington the board also fixed the price of milk by Ordcrs-in-Council issued in January and in March, the latter Order providing for the wholesale price to bo Is OSd. per gallon deliveicd at Wellington.

Frequent shortages of supply led to increased prices, and every assistance possible was given to importers by tho board to obtain freight space. In conjunction with tho Munitions' und Supplies Department .1 considerable measure of relief was afforded by securing supplies from Australia, but tho quantity obtained was ([uito inadequate to meet demands. The Commonwealth Government later prohibited tin; export of fino and dairy salt, and New Zealand has had to depend upon salt obtained from the United Kingdom and America, the freight and other charge.) upon which aro particularly heavy. Immediately Australian shipment's can be resumed it is expected that the position will be relieved and prices will ease. Potatoes, Chaff, Oats, and Fertilisers. Inquiries and investigations concerning tho supply, price, and distribution of potatoes, chaff, oats, and fertilisers were undertaken by the board, and arrangements were made from timo to timo to reliovo shortages in different locali-