WELLINGTON NEWS

Hokitika Guardian, 15 April 1925, Page 4

WELLINGTON NEWS

PRICE OF PRODUCE. (Special to “Guardi™”.) WELLINGTON, April 14. Sir Thomas Mackenzie lias taken a prominent part in New Zealand polities, at the same time he lias taken a very great interest in the marketing of the Dominion’s primary products. According to a recent cable message from London Sir Thomas is reported to have said in an interview that his inquiries suggest that New Zealand products are not likely to advance in price, except wool, but if mutton and lamb maintain their present prices it is as much as one can expect under present conditions. This is a roundabout way of (saying that prices will drop. A shrewd Wellington business man in course of conversation with the writer said that Sir Thomas was merely voicing the general opinion of economists. 'J'lk whole problem of production and distribution was developing on new lines, and to some extent history is repeating itself. After the Napoleonic wars Br. tain was carrying a. tremendous load of debt, and the politicians then as now had various panaceas for curing all ills. But after all, improvements came through individual enterprise. The gold rushes to California and then to Australia, not only provided the world with now wealth in the shape e gold, but opened up new tracts of country for development and the production of foodstuffs and raw materials Fifty years ago Huxley stated that the human stomach was tile basis of economics, and that holds good to-day. Britain is in danger of losing her proeminence as an industrial nation because her workers cannot bo fed as

cheaply as before the war. and can the .Mother Country lie blamed if sin uses every means possible to remedy this defect. Foodstuffs and raw materials must come down in value and tliov are coming down. Furthermore, high prices stimulate production, and we see this in the case of butter. r l ho war temporarily destroyed the capacity of many European countries, and Britain had to rely on the Southern Hemisphere for supplies which were inadequate, and prices were maintained at a high level. Naturally the dairy countries in tlie Southern Hemisphere made stupendous endeavours to increase production and improve the quality, the effects of which must be felt sooner o later. The European dairying countries are recovering from tile disabilities occasioned by the war and tlicir production is steadily expanding, and .farseeing men in the trade see dearly that very soon production can only be stimulated by reduced prices. It the circumstances surrounding frozen meat and otehr food products are examined similar movements towards expanding production wi.il be noted. Mutton and lamb prices have been falling steadily for some time past, anil beef which lias been rather firm is also tending downwards. Producers in New Zealand have been organising for the purpose ol maintaining or holding up current high prices, instead of exploring ways lor reducing costs of production. The cost of food to the British working man must he reduced if Britain is to survive as an Imperial power. DAIRY EXPORT CONTROL.

The Dairy Control Board inis come under the ken of the I’rolessors of Economics, but few of them have made any public utterance in respect to th

aims and functions of the Board. Last week at a meeting of the Economic Association Mr A. Paisley read a very interesting paper cm the Dairy Control

Hoard. He said that in investigating and publicity there was great seope for the Hoard's activity, the collecti:>n ol data on marketing problems, the Mm!' of all supply and demand conditions, and the regulation cf quantities of X.Z. produce from time to time would call for the highest lii'sincss ability, 'll: Board’s decision to assume absolute conIrol and lo prohibit f.0.1i. sales would mean serious interferon'e "ilh ceiniiion ja| Mini. ine. and the merchants in N.Z. would be the pi'imapil snllen.Ts. there being no piovi.sion for private enterprise thus crushed out. The c was no reason to suppose that the Control Hoard would be able to dispense with any of the usual channels for distributing produ. o in Croat Britain. Nor could it hope to reduce the remuneration of tin.so engaged in the distributive trade, so that its initial success in Great Britain would depend very largely upon maintaining, the goodwill of Tooley Street. An ideal policy would be to have N.Z. butter and cheese available on the market at all times the year if it were possible. A point which must not lie overlooked liowevc. was that the mere existence of a reserve supply, even if witli-lield from the market, often had a depressing effect on prices, and the creation of an nr

tifieial shortage.' might have the c!IV" of stimulating supplies from otho .source.-,. “It has yet to he proved fromarked Mr Paisley) that the. Hoard is organised oil the host lines lor <Olll inertial operation. In in: t it appears to contain to-; many members.'' and ho might have added that it was in the nature of a “Goodfc-How” company with the main chance ever before the majority of the members. “A fundamental difficulty with co-operative enterprises i.s the selection of leaders,’’ observed Mr Paisley and tiiat was abundantly proved during the slump. “There ics already a tendency for the Board to be forced into semi-political controversy, and if this continues it will organise upon political lines instead of a business basis.” But all the Control Boards are political in essence.