Prices For Our Products

Dominion, Volume 28, Issue 105, 28 January 1935, Page 11

Prices For Our Products

Sir, —Mr. E. AA’. Nicolaus, in criticising the administration of the Coalition Government, is like other correspondents on economic subjects: he omits reference to the most pressing problems which confront this Dominion. Generalised criticism of the Coalition Government will not lead to any satisfactory solution of our difficulties. The stark, naked fact, which threatens ruin to this Dominion-, is the outstandingly stupid manner in which we dispose of this country’s primary products. A country may be likened to a grocer’s shop. If the proprietor purchases butter at 1/- a pound and sells it at 9d. a pound, and makes a similar sacrifice in most of the other lines which he stocks, he is heading for the bankruptcy court, aud the sooner he recognises this the better it is for both himself and his creditors. Prompt measures must be taken to meet a situation such as this. New Zealand’s position is parallel to that of the grocer and his shop, inasmuch as wt have been selling wool and our other products at less than cost price. Moreover, no scheme yet presented to the publie can definitely remedy this calamitous state of affairs.

Could anything be more quixotic than to harbour the belief that the American, Japanese, French, German, and other foreign wool buyers seriously compete with each other for our wool when it is put under the hammer? There is no reasonable prospect of this country extricating itsel£,from its desperate predicament, no matter under whnt system, or what form of government, we have, until we fix the prices other people pay for our goods, in exchange for goods they sell us at prices which they fix; themselves. In our desire to trade with the woyld, we are heavy purchasers of goods from foreign countries, which we could make ourselves if foreign countries refuse to give us a reasonable price for our products. Therefore I hope that Mr. Nicolaus and all those interested in the economic regeneration of our country will discontinue beating the air, and assist in educating public opinion to a true realisation of the economic situation. Any thoughtful contribution toward the attainment of satisfactory prices for our products is more helpful than mere trite criticism of those in power.—l am, etc., AV. STUART AA’ILSON. AA’ellington, January 27.