WELLINGTON NOTES,

Hokitika Guardian, 6 March 1925, Page 4

WELLINGTON NOTES,

FROZEN MFAT MARKET,

(Special to “Guardi-,n”.)

WELLINGTON', March L During February tho Smithfield prices for I'ro'JCH meat showed a substantial drop in some grades of mutton and lamb. 'I lms, taking othci lnunds

of mutton, 501 bor light-weight droptied from 9!,d to 9d which represents n fall of Is 2d on tho carcase; medium

weight, 001 b, fell from Bj’d to Hfd. equal to 2s Od on the carcase; and heavy weight. 701 b, fell from H 3-8 d to 7,',d. or equal to Os o:{d on the cni<ase. Lamb, selected brands, light weight .‘iiilb and under, dropped irom i;fd to 12 5-Bd, equst) to Is ltd on the earcase. heavy weight TOIL Irom Lid to U .{-'■hi or 2s Id on the carcase, and other brands 121 b from 12:*d to

12id, equal to 2*d on the carcase. Apparently from the reports issued by the Meat Hoard of prices paid lor fat stock, buyers have not found it necessary to reduce their limits. Of course, it is assumed that the prices furnished

Ijy the Meat Hoard are the average and not the extreme. Presumably exporters are working on a margin of profit, altlftugh in some cases there must he an absolute loss, but there is always the possibility of the market recovering, for it is unlikely that it will fall persistently, and any recovery would restore the balance. Tint, according to a business man. there is another factor that has suddenly come into the picture and cannot he ignored, and that is the dearness of money in the United Kingdom. The effect of this cannot yet he estimated, hut dear monev means deflation, that is that comjnodity prices generally must fall. Stock Exchange security responds promptly to any change of money rates, and later other markets feel the influ-

ence. l’ecent cable messages state that tlie rates for advances have moved up 1 per cent and those with large hank overdrafts must feel the pinch. In considering the meat market it is necessary to hear in mind that exporters take into account the prices of wool, pelts and tallow, and these unfortunntelv have recently declined in value. "DAIRY CONTROL.

The decision of tho Hoard to assume

pbsolute control is giving rise to much attention. The “ Evening Post, dealing editorially with the matter, says: “ There is yet a third point which has received, hitherto, comparatively little attention—the means by which absolute control is to he brought into operation. The Hoard has power under Section l's of tlie Act to assume control of dairy produce for export by giving notice, either by service on the owners of such produce or by publication in tho newspapers. To make control effective, however, an embargo may he placed upon the export of such produce except upon conditions approved by tlie Hoard. The counsel's opinion referred to holds that this latter section is one which will really establish control. Hnt while the Hoard may act upon authority in assuming control, it cannot prohibit exports except under the authority of an Order-iii-Council. The question is- then raised of the responsibility ot the Government for the issue ol this order and for its consequences. There is statutorv sanction for the order, hut that

sanction was given, and subsequently approved by tlie dairy producers, after many statements that the compulsory provisions of the regulation, while necessary fui' use in emergency, would pro--I,ably not he brought into operation. The Dairy Board is exercising tlie powers of absolute control without attempting less drastic measures. Is this ill accord with the spirit of representations made to induce Parliament to give the powers and the producers to endorse them.” U. 0.11. SALKS OV nUTTKR. ice explanation given by 'k Grounds, the ( liairman of the Control Hoard, as to the measures of control, leaves no doubt Dial 1.0.1,. sales l>y dairy companies will he prohibited. This will make a complete break ol a system, that has been in operation since the beginning of the industry. The Chairman states that the Hoard itsell will make such sales il it considers them necessary, and of luiirse it will not he considered necessary. The point is. supposing the Hoard does make such sales, how will iv exercise control over such sales. Surely those who purchase from the Hoard oil Lodi, terms will want to deal with their purchases in their own way and iiiot as the Hoard dictates. Mr Grounds is talking sheer nonsense, and probabiy he knows it. Furthermore he has stated that finance will he secured from Loudon merchants and advances will he made by the Hoard, and instead of the agents of individual linns, against shipments, or store warrants as may he necessary. \\ ill these London merchants find the money fust how and when the Hoard requires it without making some conditions that will tie tlie hands of the Hoard L London merchants are not so simple as Mr Grounds would have us believe. Hut the question has been raised whether the Act

gives the Hoard power to repay sueli advances. If there is any legal doubt, on this matter, it is fatal to tin* working of the control, and Parliament is not likely to amend the Act during the coining session.