COMMODITY PRICES

Evening Star, Issue 23381, 26 September 1939, Page 8

COMMODITY PRICES

CANNOT CONTROL RISE IN OVERSEAS LIKES

BIG PROBLEM TO SOLVE Emergency regulations definitely prohibit an increase in commodity prices, and the Minister of Marketing has stated that no prices shall advance above the level ruling on September 1. How ever, unless the rigidity of the law is relaxed, report is that the Dominion is going to go short of certain necessary linos. These, imported from overseas, fluctuate in price, and at the moment they are on the increase, for the New Zealand Government has no control over them.

They are essentials in so far as tho life of this country is concerned, though, and unless the Government will allow them to be imported at the increased price, and sold accordingly, then there is only one alternative —to go without. This very interesting position is almost reached with certain lines. For instance, cream of tartar is restricted in supplies, and a week or so ago it was up in price £5 a ton above that ruling on September 1. At the new price, so it is understood, the Government would not allow it to ho imported, and since then this commodity has increased by another £l9, making £24 in all above the September 1 quotation. Those responsible for the control and supply of this and similar imported commodities will be faced with the alternatives already mentioned, for the Government cannot control the overseas price. Merchants in any event are chary of dealing in any imported goods, for they already have enough trouble on their hands arranging credits, etc., and on top of this there are also increased war risk insurance and fluctuating exchange rates to consider.. Trading at a loss is not one of the objects for which the commercial houses are in business.

This is a man-sized problem the Government has to solve if it adheres to its decision to maintain all prices at the September 1 level.