WELLINGTON NEWS

Hokitika Guardian, 28 April 1926, Page 4

WELLINGTON NEWS

THE BUTTER MARKET

(Special to “ Guardian.”) WELLINGTON, April 26

The London butter market is exhibiting considerable weakness, arid according to reports the market is stagnant and the tendency of prices is downwards. Practically since the beginning of the year, at any rate for the past six weeks the hotter market was very

.steady. The price of New Zealand bntt'er has oscillated between 174 s and 178 s, and even now stands at 1725. The New Zealand market has been kept steady by withholding supplies, and the result has been an accumulation of about 900,000 boxes in London and over 400,000 boxes in Now Zealand. But what is causing the butter market to slump now? Obviously it is the inrush of European supplies. Private advices indicate that the Danish output is larger, and as the Continental demand for Danish is now negligible. and the Cnited States market is closed bv the barrier of a prohibitive tariff, the Danes arc obliged to market practically the whole of their exportable supplies in England. The Danes invariably clear supplies each week irrespective of prices, and this is emphasised by the quotations of the past few week's. Thus on March 19th Danish butter .was quoted at 1945, in the following week it dropped 2s, and n further 2s in the subsequent week. On April !)th there was a drop of 8s to 182 s, on April 16th the price was IBIL and last week it was down to 1765.

The quotations for New Zealand snlt-j ed butter on the other hand have tended upwards. Thus .on March 19th the price was 174 s and advanced to 1765, ( which was the quotation for three weeks to April 9th. On April 16t4i | there was a fal Ito 174 s and last week there was a further drop to 1725. Thus | while the New Zealand quotation, ranged between 172 s to liGs. the Dan-, ish quotations varied between li6s and: 1945. On March 19th the difference j between the prices ol Danish and Now | Zealand butters was 20s and lias been J gradually narrowing, and last week was reduced to Is. While there was a- • big margin it was quite possible to maintain the New Zealand level of prices, lint now the reduction in the, price ol Danish butter is forcing down the price of New Zealand and other Continental butters are coining on the market in increasing quantities. The heavy supplies of New Zealand butter belli in store in London and New Zealand must face the competition of fresh Continental butters, and particularly Danish. The next low weeks are like|y to provide a useful test as to whether the policy of holding up supplies and creating an artificial market is a commendable one. or whether tile Danish system of ( fearing supplies each week is the better plan. SYNDICALISM. When the Parliament of New Zealand passed legislation giving the Dairy Board power to exercise absolute control over the whole of the dairy produce of New Zealand, it thereby conferred legal sanction on a system of .syndicalism to be applied to one of the primary industries of the country, observes a correspondent dealing with the problem of absolute control. Syndicalism means that those engaged in an industry shall control such industry without regard to how such control may effect the rest of the community.

This of course is job control and it is sanctioned by legislation. It is difficult to see how Parliament can refuse to grant the same rights and privileges to the workers engaged in the imfiisiry. The writer goes on to say that in delegating such power to a Board, which is elected by a limited proportion of the people, tile legislation virtually abdicated its own authority. It is the duty of Parliament at all times to exercise such general control over the acts of citizens as will ensure that no one section, (lass or body shall carry on any enterprise/ in disregard of the general interest of the Slate. In other words. Parliament is established to protect the interests of the nation as a whole, and cannot forego the maintenance of that authority. Were the Dairy Board by any inadvertent acts to place the industry, over which it is given control, in jeopardy, or in such position as to seriously affect the Dominion’s interests, the .Government would perforce lie compelled to act in protection of these interests. It is a question whether the Board, it il exercises absolute control, would not he acting ultra vires.