ELIMINATE WASTE

Dominion, Volume 13, Issue 38, 8 November 1919, Page 7

ELIMINATE WASTE

HOW LOCAL MARKETS ENCOURAGE

PRODUCTION

LESSONS FROM AMERICA

Giving ovidence before I lie British Houso of Commons Select Committee on August 3, Mr. G. 11. Uoberts. M.P., the Food Controller, said he "favoured the setting up.of markets by local authorities as a means of ascertaining- reason, ulilo retail rates."

The relationship of the market to vested' interest has always been a more or less burning question, and has made the way of the market an "up-hill light," as it were. Nevertheless, all over the world tho local market is coining into its own, and the prejudiced opposition is becoming weaker and weaker. Yet nowhere m tho world, as far as can bo ascertained, has the retail trade sull'cred any undue injury, though the consumer has been .immensely benelited. The openair markets deliberately established in . tho.'United States of America to combat, tho high cost of living has been an unqualified .success- Such eminent authorities as W. W. Cumberland, I'll.!)., professor of economics at the University of Minnesota, and manager of the American Information Service of the Minncsqta Committee of Food Production anil Service;. Professor I'. C. Howe, Ph.D., Commissioner of Immigration at the port of Now, York; Protessor 11. K. Al.unsey, Columbia University; Professors I:'. A. Potter and E. AV. Kenuuerrer, of the Princeton University; .Mr. V. O. Wallschlaoyer, secretary of the American Citrus Pruil Growers' Protection League, and .Mr. 1). G. Arbuthnot, manager of the La Verne Orange Crowds' Association, aro unanimously of the opinion, based upon expert investigation and experience of marketing, that "the peoplo cannot afford lo buy large quantities of expensive commodities, no matter how beneficial tho consumption may lie, and that the curtailment of demand means inevitably 'lie curtailment of production and tho prevention of the consumption of beneficial products, to the injury of the producer and ilio impairment of the social welfare." They all agree in •the expression .of opinion by Professor Cumberland, that although such intermediaries as wholesalers and retailers, serving a useful function, wilt always have a part in any system of distribution, "it Jims': be_ recognised that tho payments to these intermediaries ■will have to }m diminished if (he producers are to be encouraged to furnish ample supplies at reasonable prices." And the way to do this. Professor V. C. Howe, insists, is to have, in addition to a large terminal market near the railways-and wharfs, local markets, closed or open, in every well and conveniently located to the consumer. Tho experience of the United Stafes of America, Professor Howe points out, is that these markets "substantially reduce the cost of living, and (simultaneously incrcaso the return to the producer. They bring the producers and consumers closer together, and through the creation of competition with the retail dealers I hey ensure a. belter service lo the public, thereby rendering a veal service to. tlie community, wiihoul; inflicting any real hardship on the retailer."

Discussing Iho same subject. Professor Cumberland Kays Iho present system of distribution entails terrific w.islo and severe discouragement of production. A largo number of the consumers, ho has found on investigation, are unable In buy the lies) grades of commodities, and refuse to take I lie lower grades unless tho prices are attractive. The retailer, catering for a widely fluctuating demand, cannot quote these prices, and "so resigns himself to the policy of a few sales at high prices rather than numerous sales on a narrow margin.'' As tho result of this, many thousands of consumers who would, to their own great, physical improvement*, consumelargo quantities of fresh prodiico of Iho second and third-rate qualities, at present consume very .small amounts of fruit and vegetables. "The effect of this," Professor Cumberland adds, "is that: the consumer suffers through inability to obtain a properly balanced diet; the producers suffer through inability to market; a largo portion of their crops—for there arc always more small apples than largo apples—and society as a whole suffers though a waste of commodities which, under a less oxponsivo system of distribution, would have considerable economic value." Under the present; system. Professor Cumberland says, "the demand is probably decreased by three-fourths."