THE FREE MARKET

Dominion, Volume 14, Issue 18, 16 October 1920, Page 6

THE FREE MARKET

AND PROFITEERING LAWS

COMMENT BY FULL COURT

In the course of tho judgment dismissing the appeal of the Prices Investigation Tribunal against "the decision'of a Magistrate in the recent alarm clock profiteering cases, delivered yesterday, the Pull Court, consisting of Their Honours Mr. Justice Edwards, Mr. Justice Chapman, audi Mr. Justice Herdmau, states:— "It is certain that the Legislature never intended that a. trader should carry on his trade at a loss, and that inasmuch as the prices of goods constantly fluctuate it con readily be understood that if traders were arbitrarily compelled to sell their stock-in-trndo in all circumstances at prices based upon the original cost to them, any trader might he put to a considerable, or even ruinous, loss. Every trader carries 'on business subject to the certainty that prices will rise and fall. If the market prico of his stock-in-trade, or any item of it, falls ho is so much the loser. Competition in trade makes,that inevitable. The trader takes this unavoidable risk, Hoping with respect to tho purchase of each item of his stock-iu-'trade that he may escape loss; but relying upon an advance in the price of that or other items to recoup him for any loss so made." The Court adds:—"lf a. trader were compelled to sell 'goods which he had bought for .£IOOO at a price based'upon a cost of £1000, when the current market) value of those goods had advanced to -tSIoOO, he would be doprived of tbo opportunity of making a reasonable provision for recouping himself against past losses from tho fall in prices, or indemnifying himself against possible future losses from the same cause. Commercial business has never been, and never could successfully i be, carried on if traders were precluded from selling their goods at prices current in a free market.". &»'LI '