PRICE CONTROL

Gisborne Herald, Volume LXVI, Issue 20065, 11 October 1939, Page 3

PRICE CONTROL

CRITICISM IN BRITAIN METALS AND WOOL REQUISITION OF SHIPPING LONDON, Sept. 23. The introduction of control of commodity prices has caused considerable confusion. Some time must elapse before the machinery of control operates smoothly. A deputation from the London Metal Exchange, will shortly be making representations to the Ministry of Supply pointing out that the maximum prices of copper, lead, and zinc make no allowances for dealers’ commissions, and do not preclude American firms from selling tin bought in London at under .6230 a ton for a higher price in New York. Considerable dissatisfaction also is expressed in the metal and other trades at the Government’s commodity insurance scheme, and demand for a complete overhaul becomes more and more insistent. Discontent in Bradford There is some discontent in Bradford at the maximum prices of wool. There is little new business, as firms holding unsold wool do not care to sell it within the prices the Government has laid down. Traders appear to believe the price at which the Government will take over the Australian clip may represent an improvement on prevailing values. Feeling in Bradford is that maximum prices are likely to be adjusted upward rather than downward. The correspondent of the Yorkshire Post alleges that some of the llest brains and most efficient, practical men in the industry have been ignored. The correspondent goes ion to quote anomalies, including profit--1 cering by spinners and retailers, and urges that the whole scheme ibe scrapped in favour of a fairer one worked out after consultation with all sections of the industry. Freight Rises Criticised There has been considerable liquidation of tin as a result of the fixing' of the maximum price at £230 a ton, and tile metal closed the week easy. I The Economist considers that a sharp rise in oil prices is unjustified, as, while military requirements are undoubtedly very large, these will: be partly offset by a reduction in civilian consumption, especially as rationing also has been introduced in neutral European countries. The Eoconmist also criticises in the strongest terms a rise in freights, declaring that shipowners are trying to secure as much as the traffic will bear. The Economist urges that the merchant marine should be immediately requisitioned and official freight rates fixed without delay.