HIGH PRICES

Dominion, Volume 13, Issue 191, 8 May 1920, Page 6

HIGH PRICES

UNWARRANTED EXPECTATIONS OF A • FALL WORLD SHORTAGES CONTINUE (By Telegraph-Press Assaciation--Copyrieht (Kec. May 7; 8.50 p.m.; London, May C. Speaking in the Bouse of Commons the pood Minister, Mr. M'Curdy, said it ought to be realised that last year's expectations of a fall in prices were not. founded on a solid basis, and ought entirely to be discarded. He was uiiab'e to understand how business men and statesmen could take such an optimistic view of the' progress of reconstruction ot the war-devastated worlu. There was no prospect of an immediate improvement, cither in the supplies or in the price of sugar required tor Great Britain. The world's production .vas down by three and a half million tons. Rigid . rationing in Great Britain had resulted in an economised consumption of sugar by 700,000 tons; but this was exactly counterbalanced by the increased consumption in the United States. Wheat prices were the most important factor in determining wages all over the world. The world's wheat crops would be reduced during tho forthcoming twelve months. Tho exportation of wnent from the United States would tie four million tons less than that of (lie current cereal year. India was tho only wheat-producing countrv where an increase was foreshadowed, but its increase of one and a half million tons would not be available to any extent tor exportation. The Minister dwelt on the likelihood of a rise in prices in importing countries, which would be reflected in the trice of every other commodity. 110 *aid the estimated supplies of butter tor Great Britain in 1920 would bo 100,000 tous, compared with 200,000 tons before the war. The British butter production was still below the pre-war rate, and the Irish supply also had largely fallen. There were no clear signs to enable him to give an estimate of when the world shortage was likely materially to improve.—lmperial News Service. CONTROL "oTfOODSTUFFS PERMANENT DEPARTMENT . ; SUGGESTED. London, May 6. The Consumers' Council recommends the creation of the Ministry of I'ood as a permanent Department, with power to control the exports and imports of food and raw material for food, and thus secure international co-operat.on in purchasing and rationing; also that the Board of Trade should cease dealing in foodstuffs, and that the Ministry should also absorb wheat and sugar. It is urged that commissioners should- control shipping freights on food material,— Au3.-N.Z. Cable Assn.