HARM TO MARKETS

Evening Post, Volume CXV, Issue 75, 30 March 1933, Page 12

HARM TO MARKETS

MERCHANTS CRITICISED

Supplementing bis statement of yesterday that an endeavour was being made to stampede the producers of New Zealand and .Australia, the secretary of the New Zealand Dairy Produce Board (Mr. T. C. Brash) said there was no doubt that agreement to restrict exports would have an immediate psychological effect on the market, but as tho effect of any restriction would not be felt to any marked extent before January next it was difficult to understand The London merchants' cables predicting imminent disaster unless tho producers agreed instantly to restriction.'

Mr. Brash pointed out' that whaf was proposed was-a twelve months' quota, and .under. it foreign countries would almost certainly'dump their butter into Britain heavily .for tire first few months. Quantities could not be immediately restricted unless exporting countries were put on a monthly quota. HV went on to say that by their actions : the London merchants were Uiping-much.harm.to the market, The

principle of restriction was a dangerous one 'in .its long-run . effects. There was no certainty that, if New Zealand agreed to a 6 per cent, restriction of exports now, the importing interests at Home might not como along later with a request for a lostriction of 12 per cent, or even more. The principjo of restriction would spoil stagnation for the dairying industry, since there, would be no chance of further expansion.. It had to be remembered that the Government had done everything possible to assist tho dairy farmers, o,f New Zealand to increase production, and had encouraged them fill tho time to raise the yield of butter-fat per cow per acre.