GROCERY STOCKS

Gisborne Herald, Volume LXVI, Issue 20080, 28 October 1939, Page 8

GROCERY STOCKS

OFFICIAL SURVEY FEARS OF MERCHANTS PURCHASES BY STATE SCARCITY OF SUPPLIES Fears that the control the Marketing Department is to exercise over the importations of foodstuffs by merchants under the third term licensing scheme will be used to strengthen permanently the powers of the department at (he expense of private indusry, are expressed among importers of groceries in Auckland. Six weeks ago the department required merchants to submit weekly stock returns affecting 27 'different commodities. Each week they must declare their opening stocks, the quantities received during the period, and' the quantities delivered

Special inquiries have been made • n behalf of the department into flit stock position in Auckland of tea, rice nid sago, and Government purchases, .vhieh merchants describe as requisitions, were then made to ensure supplies not only for the requirements of he Army, but also to safeguard the position, of various institutions. It is, relieved in the trade that the department is also importing supplies of boc? tuff's Difficulties of Finance

“As San. Francisco suppliers have refused to send us dried fruits except ju the basis of irrevocable letters of credit, which we are unable to give, it will not matter very much if the Marketing Department cuts down our allocations to import,” said one merchant. He stressed the point that the chief difficulty with supplies of most classes of groceries was that of finance. Tea was sold at auction 'in Colombo each week, and it was no use offering extended credit terms when cash was demanded.

Owing to the increase in price overseas, it was estimated that allocations based on the value of 1928 imports would mean that only about twothirds of the quantity imported in the first half of this year could be landed n the first six months of 1940.

No shortages of coffee or cocoa were anticipated. Chewing gum was already on the prohibited list, but imports had been permitted pending the establishment of a New Zealand factory.

Rising Brices Overseas

Emphasis was laid by merchants on the automatic reductions in quantities of groceries that could be landed through price rises overseas and adverse exchange rates. Typical examples were stated to be tapioca and tinned pineapple. Since September 13, the overseas price of tapioca had increased from 10s (id a cwt. lo :7s Del. and for three standard classes of pineapple the advances were from 2s 9d to" 3s 10-’.d a dozen, 2s HU cl to is, and 5s fid to 7s lid respectively. It was also pointed out that before the import scheme was first imposed •ranv merchants had long-term con-

rraet’s which enabled them to land supplies in respect of which lurthor orders were either banned or severe!} restricted. Had it not been lor these long-term contracts, the match supply position would have been much more serious than it was. No further orders could be lodged for overseas matches, md long-term contracts would not some within the third term period. Merchants were agreed that bv of stocks there would be no great dislocation in the wholesale and retail grocery trade much before Christmas. Alter that time, the public would suffer, and there would be a shortening of staffs.