GUTTER MARKET

Hokitika Guardian, 29 December 1921, Page 3

GUTTER MARKET

ANOTHER PROPOSAL AFOOT. LONDON, Dec. 23. The Australian and New Zealand Press Association understands that the butter scheme cabled the previous day is not likely to materialise. Another proposal is that tho Australian and New Zealand Governments should purchase the British Government’s stocks at Utls per cut for Now Zealand and 84s per cwt for Australia, and hold it till autumn, if necessary. Sir James Allen and Air Al. L. Shepherd have requested the Board of Trade to delay action till Australian and New Zealand replies have boon, iceoived. The trade generally approves the suggestion that the New Zealand and Australian Governments should purchase. One leading importer says that only thus can disaster he prevented. II Government stocks amounting to nearly a million boxes are thrown on the market at sacrifice prices, not only will the value of new butters now arriving Ik- still luitlior reduced, hut prices lor the lemainder of the season will be brought to a level which must entail heavy if not ruinous losses to Australian and New Zealand producers.

, The earlier scheme referred to in the above message was outlined in a cable message as follows Negotiations are proceeding between several leading importers in Toulcy Street and the Australian and New Zealand High Commissioners and Ageuts-Coneral to improve 1 he position, also to persuade the British Government not to accept the offer hv a private firm recently cabled.

This firm is unconnected with the hotter trade, but previously bought large Government stocks ol hoots, linen, etc. It is mulct stood that 'I oolcy Street lias oilseed to purchase the whole oi the Kriti'll Government slocks at WUs I H ' r ,-wt for New Zealand and rts per cut lor Australian, on the condition iiiut Au-lralia and New Zealand -hould only .' in .VI per cent of their production during ihe next thee nnml!. t CO-OPKR ATIYF. DAILY < O'dl’ S'- ) VIEWS. Dismissing the dairying situation, the secretary of tlm Now Zealand ( ■>- o|-c! alive Dairy Company. Mr ’l'. !-■ I lames, staled last week that the serious position had arisen owing to the .b-sirc of the Imperial Government M (.nil ihe whole ol its storks. !i ike i maining Guveiumeni butler was toiccd on to the ma i ket at one time ihr immediate effect could mi lull I r disastrous. > Mr Good fellow had cabled that elide:,vours uore being made by rcpiesenlativrs of the New Zealand ami Australian producers now in l.nndnii In loiluulate a scheme to prevent any lurlhor slump. The matter, said Mr llanics, .ms also being dealt with al this end, while consideration was being given to ii by the Australian and New Zealand Governments uitli a view to co-operat-ing with the producers so ns to prevent the disposal of Imperial Government staiks in stu b a way :is in eomplelel;, break the market. No doubt the New Zealand Government would give lbmost earetul (-uisideru t ion to the matter, while All Good.cllow and others ume doing their utmost al the other

end. It was Imped that some satislaetorv arrangement would he made in tile ncai i'l/l lire, and in all piobability a conference ol butter producers would he held in the Dominion early in the New Year.

Mr 1 |:une> mentioned licit the Impciiul Governinenl now l-'lil over “(1,0(10 tons ol hut ter, nearly half ol which, he lillilci stuod. was Nt'W Zea-land-made. Were thm oi good quality and fresh, it would net lake (lie market long to absorb it at icasouahle prices. Ahull of it. however, was stale, and it was even reported that some ol it "as iiiiAt for consumption. Consequently the old Stocks had been moving very slowly since fresh butler began to he available. This had apparently led the Imperial Government to endeavour to ,|Uil the whole uf its stocks on the mmIf that menace euuld he removed |,v | he sale of a substantial quantity to tile Continent the butter outlook would be much improved immediately. In spite of had trade conditions and the general depression in England new but ter would no doubt ictain fair prices especially for best quality, such as New Zealand’superfine, than which there ■was nn liner entering the London maiket.

Discussing advance payments lor December, Air Haines said nothing definite could he said regarding these at the present time. The position "as critical, and unless there was an improved tone in the market some temporary reduction in advances of biitlerla: might he necessaiy. At the same time his opinion was that it the piesent difficulty could he overcome the butter market should he fairly salislnctory. with a return to normal cniidit ions.