The Hastings Standard Published Daily. THURSDAY, FEB. 11, 1897. THE EXPORT TRADE AND STATE AID.

Hastings Standard, Issue 244, 11 February 1897, Page 2

The Hastings Standard Published Daily.

THURSDAY, FEB. 11, 1897. THE EXPORT TRADE AND STATE AID.

For the cause that lacks assistance, l'or the wrongs that need resistance. For the future in the distance, And the good that we can do.

■h sr now there appear-. to he a deal of agitation, bavin;.; for its pur I»os« the securing of Stun- ui*l for certain branches of the export trade. This agitation is most noticeable in the Kinpire City, where the two daily papers are v i« i(iivith each other 111 the :-itivnuon.snes.j of their advocacy, the only difference bcintf as to the form the from the Slate .should ita-suim*. The New Zealand Tiuies .stands up for fresh markets, while the Evening Post maintains that the < Joy eminent should confine its attention to the I'.ie.'o di market and in .io far a: the fro .'en meat trade i-> Concerned should erect fold storage in London and the province.-!, and generally to enter into direct co operation with th-' meat companies in exploiting the market. It is a tint* «jue.stton, how far the < ioveminent of the colony ma} proceed in its efforts to expand trade It is only imt iral to expect tha vvherewr and uhtiievtr the opjior tunitv is the (iov<rnmeiit would bt ut la i a part and l« rfornnutr it» highest functions by a-ssuurij.', but tins must necessarily tx) of an indirect nature, &od Uwittd m tiiuit. To iUtutr&te I

the kind of help the Government can give, we may mention the matter of mail subsidies. It would be the simplest thing possible to make it a condition of any over sea mail contract, that the steamers carrying the mails shall provide suitable accommodation for perishable produce, and fixing a freight limit if possible. Such a course would be serving the interests of the producers at practically no cost to the colony, and the State would be free of the risks that are inseperable from co - operation. We have no sympathy with those who insist that this and that industry must collapse unless the State interferes and finds money for its sustentation. There is a ruinous fallacy running through all the attempts to foster industry by State money. Perhaps it is not singular that it is only in the non-paying or scandalously managed that the State is asked to become a partner. The effective participation of the State is always limited by the course of events to losing transactions. Those who have a good thing do not want the State to have any share in it. The net result, judging by past experience of State interference is the waste of an enormous sum of money wrung from the taxpayers with no perceptible benefit to the country. The frozen meat trade, owing to the ruinously low "prices now being obtained in London, has become the special care of State aid advocates. Government should erect cool stores, Government should regulate shipments, Government should do this, and Government should do that, and then—the millennium for the meat trade. One would suppose from the vaporings of such people that frozen meat was the only commodity affected by prices. What about wool ? Is not the price of wool low, —ruinously low'? And should there not be State aid for this important branch of our export trade. Why should not the Government help the woolgrowers by bearing the cost of wool-sheds, providing shearing machines, classifying and dumping the wool free of charge, or, if it be preferred, advancing on wool at a cheap rate, or at no rate whatever. One could go on multiplying the avenues of employment for State money in connection with the wool trade, but to advocate the necessities of this branch of the export trade is to brand oneself a lunatic, and yet it is no more insane or stupid to enter a plea for wool as for frozen meat.

There is unquestionably a depression in the prices of frozen meat. They are low —just below the line which divides profit and loss, if we take the last balance-sheet of Messrs Nelson Bros. (Limited) as an index ; but what of that. The meat trade is in no worse condition than the other commodities associated in our export produce trade ; and New Zealand is not singular in the matter of low produce prices when compared with other producing countries. A fall is recorded everywhere. It has been the tendency of the produce market for the past twenty-live years, and from present indications the lowering tendency is likely to continue. llow are we to convert low prices from a loss into a profit'? That is the problem that has to be solved, and State interference will not accomplish. There is one effective way of meeting low prices and one only. That is by improving the means of production and supply. It is inevitable that the supply must increase, and it is evident therefore that other agencies than those of rings and combinations against tl 0 consumer will have to bo employed. The scope of the European market for colonial meat is practically unlimited, and, according to its cheapness will the demand increase. It is obvious then that all artificial experiments for keeping up the price can have no other result than that of keeping this great outlet closed. It follows as a matter of course that our pastoralists should concentrate their attention upon bringingdown the price by improved facilities for shipping and marketing. The industry does not require any lavish expenditure of State money to prop it up, and no such expenditure should be incurred. The disabilities which hedge in the industry can be easily overcome. Successive arrivals of damaged cargoes, and numerous shipments of inferior quality are not the methods that can be commended for expanding trade. " Keally good sheep haw always been obtainable, and would generally have sold at remunerative rates, had not second class New Zealand ruled so low in price." is the comment of the Colonial Consignment and Distribution Company in a recent circular. Is it to be supposed that second class quality is to realise as well as prime quality, and yet that seems to have been the anticipation of New Zealand shippers. Criminal negligence and gross mismanagement are at the bottom of the mischief, and but for so much inferior quality stall and damaged cargoes being dumped down in the London market prices would probably have been better. It is impossible to single out any par ticular company for blame, and if it were possible it would not be prudent; it is nevertheless clear that the pas• toralists will have to assert themselves and insist upon better management, or submit to the loss of a great and important industry. The meat trade is suffering from disabilities manufactured at this end, and the sooner this is: realised and the requisite steps taken to remedy the evil the better, 'flu industry will be none the better fur being spoon - fed by the Ma-., .