WELLINGTON NEWS

Hokitika Guardian, 28 July 1926, Page 4

WELLINGTON NEWS

THE SPECULATOR. (Special to “ Guardian.”) WELLINGTON, July 20. The scalp of the speculator has been in jeopardy again atul again judging bv the opinions expressed at various times by various people. Mr Bernard I, Tripp, of the New Zealand Sheepowners’ Federation, who is at piesent in England, in the course of an interview said that speculators would neverbe ousted until a statistical bureau was established to supply reliable information as to the quantity of wool, meat and butter stored throughout the Empire, possibly throughout the world. Mr Tripp displays a childish faith m statistics if he believes that his proposal would accomplish the impossible. As society is now constituted, as tinde and commerce are now carried out, and as the seasons vary, so dong will the speculator exist. hle exists because be is an economic necessity. If it were possible to produce just as much wool and meat and butter and cotton each month to exactly serve the requirements ol all consumers then the speculator would vanish, but that is quite impossible. The mere fact that theic is Wool and butter and meat and tea and other commodities in store is' in itself an indication of speculation. Somebody must bo the owner or owners of such goods and the latter must run all the risks of market fluctuations. The real question is whether the producer should speculate in his own product, or whether it is wiser for

him to let the other follow who is equipped and train for the purpose to do the speculating. During the wool season of 1921-26 when prices were ruling 'high, many woolgrowers instead of accepting the prices ruling, speculated in their own wool with disastrous results. Wool for which 2ld or 2nd was offered was held by. the growers who eventually wore glad to accept 18d or 19d. The butter factories, or some of them, have been gambling in tlieir butter by holding same in cold store for a price. The gamble may result satisfactorily or it may not, the point is that ft is a speculation. It is quite impossible to eradicate speculation, certainly statistical information will not accomplish it. Furthermore statistics of supplies is only half the information, and statistics of consumption actual and potential would be necessary to complete the scheme. At the same time no objection can he raised to quantities in store being made public. THE FREEZING INDUSTRY. It is claimed by an expert actively engaged in the frozen meat industry that the balance sheets of freezing companies which are due for circulation after the next two or three weeks will show further heavy losses which will he most discouraging to shareholders and will not help tire industry in the estimation of capitalists. The position is believed to be bad lienee the suggestions for amalgamation. One who claims to he an authority on tho matter says that the practical difficulties in the way of amalgamation are such as to demand sacrifice on the part of some of the units, but too much in the way of elimination of works must not be expected until the farming conditions have readjusted themselves, to the projected modifications, and the same authority says: 11 The attitude of some of the (till now) more successful companies in their aloofness from suggestions of amalgamation is a factor almost as formidable as that ot the economic units. The granting of the transfer of the meat license recently refused by the New Zealand Meat Producers’ Board—if ' such granting were otherwise desirable—might prove a very effective cure for such aloofness for in such competitive conditions ns would ensure the exponents of splendid isolation might- soon become wit mi advocates of an alliance policy.” Though not named, it is obvious that this authority is referring to the Gear Meat Company, one of the few well managed and financially sound freezing companies we have in.tlie Dominion. It will not be surprising if there is not presently a propose I for “compulsory ” amalgamation.