The Gaurdian (And Evening Star, with which is incorporated the West Coast Times.) TUESDAY, MARCH 25th, 1924. REGULATING BUSINESS.

Hokitika Guardian, 25 March 1924, Page 2

The Gaurdian (And Evening Star, with which is incorporated the West Coast Times.) TUESDAY, MARCH 25th, 1924. REGULATING BUSINESS.

iiE.ii.ixo with post-war problems apPears to be largely a matter of attempting to regulate business in some form or another in order to afford a measure of relief to some class of prolucers or other. During the war we iad Efficiency Boards which attempted the same thing J and since hostilities ceased, the task of the boards has been carried on by other authorities with more or less greater powers, who have attempted, or are attempting something of tile same objective—a constructive agency to develope the business life and trade of the country. Experience shows now, as it did during the war period, that the task is a complex one, and that huge and costly machinery is necessary, and the result is not always assured. In Australia much was attempted in the same direction under the guise of State enterprise, but in no case with satisfactory results. New Zealand has not attempted the straightout State enterprise—but offers very freely State aid, with the backing of the State behind the movement. This applies directly to the Meat Board and Butter Pool, while there is also the commitment of the country on the wheat question. This has been a relict of the war times, but this year the Government is endeavouring to get out ot the toils by declining to guarantee a price for wheat growing or to fix a subsidy. Aid, however, is still to he offered by a customs duty to assist in keeping out tile overseas article, so that- the local grown commodity will have that to its benefit, as also the overseas freightage. In that way the wheat producers are being put on a very good foottng, But they are not sntip-

fied with the position, and to'-eaten to give up wheat growing in the quantity necessary to produce the required flour for the country. That, brings the cost of the staff of life home to the consumer* and the relation between New Zealand land some portion*; of tins Commonwealth in regard to wheat growing has boon touched upon by a contemporary as follows : —Whilst the Canterbury wheat growers are asking for ss, 6s, and even 7s a bushel guarantee front the Government, the farmers of Westralia have asked for a guarantee of 3s per bushel, and would be glad to get it! I West Australia has made rapid strides in wheat production during recent years. In 1917-18 the yield of that State was 9,303,787 bushels, in 1921- it was 13,904,721 bushels, in 1922- it was 13,857,432 bushels while the estimate for cron now being garnered is from 19,000.000 to 20.000.0C0 bushels. Westralia will thus grow about twice as much ns New Zealand this year, and one important difference is, that in 1921-22 the New Zealand crop was 29.94 Imsliels to the acre for 353,000 acres the AVestralian crop was 9.06 bushels for 1.550,000 acres! At 6s per bushel for a 30-acre crop tin New Zealand farmer gets £8 per neie, whilst, the Westraliau gets a shade ovci

275. These are matters that must he considered. They probably mean that New Zealand bread will he twice as dear as AVestralian. Even fowl wheat lias been fixed by tile Government ai 6s 2d. No wonder the Auckland merchants are importing from Australia. No doubt wiieat-1 firming is different in Australia from New Zealand. Lam, is enormously cheaper. Also, the wheat is harvested by strippers, which cut i the tops only, and the stalks aie ploughed in. In Victoria, the yield is about 14 bushels and in South Australia about 12. People in New Zealand will not stand long lor these high prices, even to keep the wheat industry on its legs. What has become of “world parity’’ prices, of which we heard so much regarding butter a year or two ago l And that query brings us back to the subject of this article on the question of regulating business. The grouping of trade eliminates all competition, and the public suffer accordingly. The regulation proposals aie

si;in to trusts or big combines whetehy prices are kept up. That is nor good for the country in tile end. No. only is trade regulated, hut production itself is regulated, and prices are kept up by keeping down surplus production and so affecting prices by the ordinary methods of supply and demand. This general regulation is in the end restriction amt cannot be good fur the eventual progress of the counliy.