WELLINGTON NOTES.

Hokitika Guardian, 20 October 1924, Page 4

WELLINGTON NOTES.

THE BUTTER. AIARKET.

(Special to “Guardian”.)

WELLINGTON, October 17

The strength of the butter market while very pleasitnig to all concerned is somewhat puzzling, and very few care to make predictions as to the future. The market is still suffering from the effects of the war. It is only within the past two years that the imports into Britain have exceeded the imports for the year ended June JO, 191-1 and the excess is very small. In the meanwhile the consumption has increased with the increase of population and the increase in consumption is shown in spite of extremely high prices. It may be said that production is still below the volume of consumption, and it will probably take another year or two for production to overtake consumption, and to provide a margin for adverse weather conditions in the countries of production. AA’ith respect to the peculiarities of the market Afessrs AA'. AYeddel and C’o. Ltd., in their latest annual review of the trade say, "There arc few markets more flexing in their reactions, or subject to such extremes of enthusiasm and despondency, l’rice movements are extremely difficult to account loi, as they occur sometimes without any apparent cause, or from causes which, at other times, would have practically no effect while any attempt to anticipate futul-e requirements only too frequently leads to regrets. Hie 10snlt is that buyers have become more and more timid and “ nervy,” lacking confidence in their judgment, and conlent to operate only from hand to month. It is the exception, rather than the rule, nowadays to find any but the largest buyers, with an assured outlet, willing to hack their opinion of the market for mole than a few weeks ahead.” It is very probable that the current season will see values high, perhaps not quite as high as they have been, but that, of course, will depend upon the volume of supplies. There is certain to he violent Hiictnations because ol the impossibility. of regulating shipments from the three producing countries in the Southern Hemisphere, viz., New Zealand, Australia and the Argentine. EXCHANGE DIFFICULTIES. The difficulty of arranging the exchange of credit between London and Australia, and London and New Zealand lias been emphasised by a lurther advance in the Australian rates. Ihe Australian banks raised their rates os per cent all round on September 2D, and. made another advance on October I.T, this time the rales were raised IDs per cent. The New Zealand hanks responded to the earlier advance on October (>, and it remains to bo seen whether there v.ill be a response to the further advance in the Commonwealth since announced. It can be stated with certainty thal the banks in New Zealand have been endeavouring t<> keep the exchange rates down, but the position is really bo.voiul their contiol. They must keep step with Australia or lose heavily. The associated Australian and New Zealand banks ill Loudon are in the same awkward position, and they have responded to the Aust r ainn advance by raising their rates. The exchange situation is decidedly bad for the exporter and the producer, and it is perhaps poor consolation to indicate that the rates are much lower in New Zealand than they are ill Australia. All sorts ol expedients arc being adopted in the ('oninioiiwealtii to secure credils and it is stated that buvcis of wheal, who must purchase

as soon as the harvest, arc exchanging film in London for I'D.’.! in Sydney and .Melbourne. SonieFidicli woidbuyers arc said to have brought out I* rcncli merchandise which lias been sold in the Commonwealth and the proceeds are being used lor buying wool. It is stated that, the Commonwealth and Australian associated banks have ar--111 ;. 1 ;in agreement whieh will ic lii-vo 1 lie iina:iei;d tension, and 11 is to be hoped that this will prove effective, for it will mean relief to New Zealand also. .MAN'i’FACTT REDS’ RECENT t'i.lT KTS.II. At a recent meeting of the AAelling-toY’lovim-iai Association umbrage was taken nt the alleged unfair criticism of the secondary industries of the country, and tin* opinion was voiced that the time had arrived for manufacturers to combine in their own interests, and the acting, president, who in I induced the matter, said be tavourcd working in with tho Department ol Industries and Commerce in placing the true position of the manufacturers before Ihe country. The advisory officer of the Department who was present rather favoured the db.som.inntion of technical information to maoulaeturers, the kind of technical information made in America where they can assemble a “Prince of AVales” mot)* ear in twelve minutes. It was also suggested that scientific research would be helpful, but it was pointed out that Professor Kaslerficld of A ietoria College used to take bis classes to various factories to give them practical experience. As soon, however, as the professor commenced to inquire inLo costs the manufacturers closed up like oysters. The president ot the Employers’ Federation recently stated that a l present wages of those engaged in the primary industries are disproportionate to those in .secondary industries and as the prices of primary products are determined hy the world’s markets higher protective duties are not justifiable.