WELLINGTON NEWS

Hokitika Guardian, 9 March 1926, Page 1

WELLINGTON NEWS

a fictitious claim. (Special to “Guardian.”) WELLINGTON, .March 5. The London Agency of the Dairy Control Board is starting early to make unwarranted claims of success for the policy of the Board. Tn a cable message received hv .Mr T. ft. Crasli from the agency reads: —*• Butler—for six- weeks market lias been steady, proving the value of the regulation of the shipments.” The steadiness of the market has been in no degree due to the regulation of shipments. hut ha.- been brought about by withholding supplies from the market. Owing to the strike of British seamen at the opening of the dairy season there was an ncoimiuhition of dairy produce in New Zealand, which was exported as soon as the vessels were free to resume their voyages. Owing to this it was estimated that about 10,000 tons of New Zealand butter with i supplies from Australia would reach file terminal inarkef in -lantinry. In- j questionably there Were heavy suppliers on the market during the oast 3 or tl weeks, and to prevent values dropping most of the butter was held up. It was stated last week that with butter m cold store Mild afloat there was about .‘IO.OOO toil- (1.200.000 boxes) in sight. In view of this heavy ijua ntiiy and the fact that supplies from other

sources were coining in rapidly il was announced that the advances to the cooperative dairy companies would he reduced (o Is 3d per Ih, hut if butter is intended to he held then the advance is uni to exceed Is 2d. This goes to -how tiiai the aceiiinida I ion which is now a menace lo the market has hoetl withheld from sale, and because of Mini i !u> market has been maintained. Regularity of .shipment, has had nothing to do wtili il. therefore the Board cannot lake any eirdit. for the steadiness of the market during the pasl six week's. The stored butter must sooner or l.iler go upon the market: what then is likely to be the elfeet '? There must lie a break in prices, and probably a serious break. The London houses handling lull ter. while agreeing that the regulation of shipments may lie a useful thing, the holding back ol supplies from the market is unsound from the economic point of view, ft is really unsound trading. The .Meal Hoard has been regulating the shipments of meat, for some time past-, yet flic frozen meat market is today in a deplorably depressed condition. Brices can lie raised or depressed artificially lor a. time, bill ultimately il is supply and demand that must dominate the situation. .Mr T. ( . Ilrash. in an iiitorviev. . slated that the holding bark of bine, i- foreign to the policy of Lire Board. Nr ali-uupl will be made by (lie Board to totally withhold dairv produce from tho tu.it-

ket with tin- view of forcing up tinprice. The Board's proposal is !> •• fc.d ” the market with regularity - if no- -ible. avoiding ate. glut as ucil

as any undue rest riel ii.n ol -applies. This i; a diHornier without a di-tine-iion. Dairy nr.wince is not being told- j iv wiilda Id by the lariories. lu,i only j a r.uflieieut quantity is being idea sect | as w ill maintain pl iers beyond Mu' l eeenomie leve l. The Hoard's "leeii-nig” I i! i' r market, v. HI in I direction !•:•!! BLA BY WOO]'. SALES. There were- four wool sales hold in the NCrtlt Isl-ttid during the last month and a comparison ol the prices realised for average quality crossbred fleece wind show very little difference. At Wanganui and Auckland, that is ai the (irst and second sales ol lb.- moida the oriei-s wore tile same, bill at Napier and AYelliiigtnn there was a slight improvement. litis was due to Bradford taking a keen interest in the market, and at hoHli piaees Bradford lifted the heavier weight of wool. The fact that Bradford lias at last route into the market in real earnest is very encouraging, lor it indicates that wool prices have reached an economic basis where buyer and seller can meet io mutual advantage, ft is generally believed that last season Bradford's wool losses approximated to £10.000.000 but Bradford has forgotten that now there is a. probability of trade expanding and a modest profit being available. A wool sale without Hradlord is very like an egg without, salt. With all the talk about other countries the fact remains that Bradford is the dominating centre of the world’s textile trade, and sets the pace for all the others. When Bradford operates I'reelv the wool market is safe.