The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 19, 1926. INTRICATE BUT COSTLY.

Hokitika Guardian, 19 March 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 19, 1926. INTRICATE BUT COSTLY.

“Too much Government in business” about expressed tiio feelings of some meiiiliers of the Wellington Chamber of Commerce- when they discussed the, intricate Imt costly wheat problem. The way in which the subject was handled was not very enlightening to the consumer, the party most affected. Vet it was plainly put. by the Taranaki Chamber, whoso resolution was to the effect that as all the protection and subsidies given to wheat growers to produce had nesulted in production of half the country’s requirements, those expensive tonus of aid to farmers should he dropped. However, ouo member of the Wellington Chamber made it quite clear that the Government- should not permit any Minister to interfere in this vital matter of the Dominion’s food supply, (nit rather lake Parliament as a whole into its counsels. That is the only way, so far as we can see, says the Wellington “Post,” in which the consumer can find expression of the protest against such preferential treatment—at his own expense—of the wheat growing, and flour milling industries. Another member of the Chamber remarked that the. question had changed its lino from economics to politics. But. it is still a vitally economic question, and

that is why it is most desirable, that the Government should take Parliament into consultation and no longer permit unduly wide exercise of powers of subsidising and tariff adjustments in special interests by Ministers. The amount of Government in business has been manifested all too frequently of late. In connection with the wheat production, the result has been very costly to the country. Like all aids to price fixing, attempting to tamper with the laws of supply and demand have rather a boomerang effect. When price fixing was attempted during war time, the circumstances were extraordinary. but those times have long past,'® and to persist, in the effort is to court failure, for there is now quite a different atmosphere. 'Hie position is altogether too intricate to he anything hut costly, and the sooner the situation is faced the belter and allow matters to take their legitimate course. Just as the price fixing is doomed to failure, so also is the attempt at control of export. It is in effect another effort to keep up prices by a false means. The control of dairy products as regards export can have hut one ending—the final discomfiture of the suppliers. New Zealand is far removled from the Homo market.- its chief source of income for produce, and the control can be but an

injury in the end, for the consumers will come to regard New Zealand produce with disfavor if and when they realise that it is procurable only when prices are high. It is the market which makes the industry, and not the prices in themselves. If New Zealand produce were to be sold only when prices are high, what is to becor>. ■ - the produce when prices are down. Stock would so accumulate that there would lie a glut, and the effort- to control the trade, by false means, viewed from any aspect seems only to suggest failure and lass. The ideal is alright, hut the aims can never be realised. The policy of the Government in other directions in restricting trade is no less lileelv to carry disaster and loss in its train. The timber industry k suffering grievously by the control ’ vt upon export and now that the public are becoming alive to the injury this false control is in respect to other coip-

modi tics, tho agitation for relief in respect to timebr control should be urged also. , As the matter stands tho timber industry is being seriously handicapped in the economic realisation of the forest wealth by reason of Joss of export markets, and if this fact could be brought home there would he hope lor a desirable change in the jxiliey. As it is there must be less Government in business or the army of unemployed is going to be increased seriously.