The Dominion. WEDNESDAY, MAY 26, 1920. AN ACUTE PROBLEM

Dominion, Volume 13, Issue 206, 26 May 1920, Page 6

The Dominion. WEDNESDAY, MAY 26, 1920. AN ACUTE PROBLEM

The problem of meeting the conditions of export tirade that will ' arise with the termination of the ' Imperial commandeer was discussed yesterdas r , not only by primary producers, at the annual conference of tho Wellington Farmers' Union, but I by the lacal Chamber of Commerce. ' It is, u course, recognised that any ] material setback to the primary in- ( diivstries of tho Dominion would bo ; em extremely serious matter for the i ''whole population. Primary pro- < duce constituted practically tho ; whole of the exports which in 1918- , 10 brought returns totalling more than 46, millions, and it hardly needs to be pointed out that even a single year of hampered trade, ; with poor or unduly delayed re- • turns, would be felt heavily by all sections of the Community. It is very distinctly a matter of national concern that farmers, as Me. 6. L. Marshal observed yesterday,- will be cajied upon to face grave difficulties, in the near future. The outlanding _ fact of the meat trade 'position is the great accumulation of carcasses in store here and in Great Britain—an accumulation which now manifestly must bo attributed to a mistaken policy on the part of the British Governmbnt. The position in regard to wool exports is less clearly defined, but it seems likely that in the caso of this commodity also the British Government has unwisely withheld supplies from the market. A serious shortage of shipping space accentuates the problems of export trade generally, and nowhereto a more pronounced extent ' than in the case of meat and wool. These two commodities, with byproducts, more than 63 per cent, of the Dominion's exports in 1918-19—wool alone accounted for' nearly a third of the monetary return from tho total exports—and it is clearly of vital urgency that everything possible should bo clone to ensure their being marketed in the best attainable conditions next season,' and as time goes on. This prospect of a definite fall in prices makes it all the more necessary that prompt and purposeful action should be taken with a view to securing the speedy clearance of accumulated stocks, an improvement in shipping services, and such other adjustments to extraordinary conditions as may bo necessary. The Farmers' Union Conference yesterday declared for a continuation of the commandeer of moat until the present position has been relieved. It is doubtful whether such an extension can now be secured, but strong representations should be made in this direction in the hope of securing some relief. It is highly probable that the Government will find it necessary to organise some sort of financial assistance to farmers to tide them over their worst difficulties. The central object, however, of the conference representing producing interests which is_to meet in Wellington to-morrow ought to be to ascertain exactly what can be done before next oxport sea> son opens in scouring more shipping and hastening the clearance and marketing of accumulated produce. The Government, no doubt, will bo ready to supply all available information on these points, and also to briag the utmost possible pressure to Dear on the British Government to hasten the restoration ol normal conditions of trade. A clearance of the channels of trade is, of course, essential to unimpeded production, and in giving all reasonable assistance to farmers in this connection the Government will at the samo time be taking the most effective steps open to it towards ensuring settled prosperity for the whole population. As the chairman of the Chamber of Commerce observed yesterday, the prospects of New Zealand export trade are intimately wrapped up with the question of shipping. While the trade problems to be confronted in the near future are the outcome in great part of the British Government's policy in holding up large stocks of foodstuffs and other commodities, the outlook is niado much more critical than it otherwise would be by the failure to provide enough shipping to clear tho accumulations of produce stored in tho Dominion. At different times New Zealand producers have discussed the possibility of finding a partial remedy for their difficulties by setting up a steamship line of thoir own, but available facts in regard to tho shipping situation suggest that there is little enough hope of obtaining relief by this method. A strong case is made out by those who contend that the true remedy for tho partial paralysis of .shipping transport I throughout the Empire is to release the industry from the measure of I control now exercised by the British I Government. It is, of course, agreed | that State control of shipping was

indispensable during the war period, when abnormal demands had to ba met promptly at all costs and irrespective of the conditions ordinarily governing trading services, but thorc is no doubt that since the restoration of peace the British mercantile fleet has been vcry_ much less efF.ciontly controlled than in pre-war days. Discussing this question in the Fortnightly Review for April. Mr. Archibald Hurd points out, amon<ra'b other things, that although Britain has noarly made go.xl the losses of mercantile tonnage sustained during the intensive submarine campaign, the siiips are carrying only from CO to 70 per cent, of the volume of goods they were carrying in 1914. It seems likely that New Zealand producers have more to hope from readjustment of existing shipping conditions than from anything they can attempt in the near futureon their own account in the organisation of shipping services. In any

must bo to see that ovorything possible is dono between now and the oncl of the year to hasten tho restoration of normal conditions of trado by securing an increased allocation of shipping and expediting the clearance of accumulated stocks which, as matters stand, threaten to glut and spoil their markets.