Hokitika Guardian & Evening Star TUESDAY, MARCH 2nd, 1920. THE STAFF OF LIFE.

Hokitika Guardian, 2 March 1920, Page 2

Hokitika Guardian & Evening Star TUESDAY, MARCH 2nd, 1920. THE STAFF OF LIFE.

With the end of February the flour subsidy must be reviewed. That means the price of flour will be varied. It iscertain to be increased in price. That affects the business of the baker and the consumer of bread. As a result of investigations made by a Dunedin ‘Star’ representative the general position was reviewed recently. The situation with regard to flour and bread is now clearing, however, and though absolutely definite facts are unobtainable it is possible to forecast the future effects of recent negotiations with reasonable certainty. A week ago there was much uncertainty with regard to the Board of Trade regulations affecting the sale and supply of flour. The regulations are now available, and they help towards an elucidation of the position. They are made under section 26 of the Board of Trade Act, which provides that regulations may be made for “the control of industries in an v man- j ner which, is deemed necessary for the i maintenance and prosperity of those industries and the economic welfare of \ New Zealand.” The justification for < the regulations is “the present defici- j ency in the supply of wheat and flour.” It is provided that no flour shall be delivered in more than five-ton lots ( in seven days except on the authority of a permit issued by the Wheat Con- 1 troller. Any flour delivered as a re- * suit of tlm permit must be dealt with c in terms of the permit. In a word, the regulations are so tightly drawn as to 11 completely control the sale and deliv. er y of flour. Etacli baker is to be sup- £ plied with the flour necessary for his 3 business, and lie cannot if he would be- £ come a speculator in flour. If his j business is less than five tons a week ! a he will get liis necessary supply | a which will bo less than five tons. P The representatives of New Zealand j milling companies conferred with the si Board of 'lrade in Christchurch last n week. The final meeting took place m on the 20th Feby. It is understood that tf a complete commandeer of all stocks fa of flour will be made, whether they are T held by miller or baker. ' We have st pointed out that some bakers have se brought forward in anticipation of a ‘ gi rise and with a. desire to be safe with tli dontralcts. This forward 1 buying will be profit them nothing now, as after the A: ?BtTT Feby., miller ai»d baker, whether vc Fey hold small stocks or full stocks Sc if flour will start, even. The stocks fo vill all be in effect commandeered and c-o ■ovallied and values will be adjusted pl< is part of the new scheme for flour to listribution. It is clear that millers pr nd bakers, who hold stocks will lose to irospoc-tive profits by the commandeer, an nit the question which will exercise the bu niblic mind is whether the consumer ,m nil get the full benefit of that prosper- to ive loss. All contracts for moat, flour I >:1 nd bread will be automatically can- in elled. This power will probably be nken under the Board of Trade Act,; the nt it would seem to follow as an ah- in nlutely necessary step if the fulfil- ha lent of forward contracts for wheat cm nd flour are cancelled. The cancelttion of bread contracts • will affect W 1

many public bodies and some' private j institutions. It will be seen therefore, that the developments arc quite nil. ' usual, and that the immediate decisions j on the points indicated will have a far-reachinig effect. It is understood that some large stocks of flour are held, and these will now go into what might be called the common pool.