WELLINGTON NEWS

Hokitika Guardian, 22 March 1927, Page 4

WELLINGTON NEWS

IX A STATE OK CHAOS. (Special to “ Guardian.”) WELI.rXOTOX, March IS. The British luitter ruarlcet is reported to lie in a state ol' chaos, and that can he well understood when the drastic change of policy of the Dairy Control Board is taken into consideration. Now that the Board has given instructions for the sales of New Zealand halter to he increased from an average of 30.000 boxes weekly to 00,000 boxes, it is found that this is to some extent impracticable as the big buyers are loaded up with other varieties. Tho position will right itself presently, but the cost to the New Zealand dairy farmers will be tremendous. Already the price lias fallen from 168 s to 150 s, and tlie probability is that it will recede to 130 sif not lower, with tho bulk of the season’s output to bo marketed. Two facts emerge from this Control Board fiasco. One is tho humiliating fact that the buyers were able to get along with the minimum of Xew Zealand butter, the finest butter in the world, as we are frequently assured, and the second is that the policy of the Board forced ah' sections of the trade engaged in the distribution of butter to combine to resist the dictation of the Board. It is these two facts that brought about the defeat of the Board and not any press propaganda. As the Bishop of London said recently: 11 Because Xew Zealand produces 231 per cent of the world’s butter she must not think that she can control the price of the world’s butter.” Briefly put this is equivalent to saying: “Don’t lose your sense of proportion.” The Board was warned by the Associated Chambers of Commerce of the dangers of absolute control. The (lon. AY. Pember Reeves when he visited Xew Zealand warned the dairyfarmers that the men engaged in the dairy produce trade in Britain were very shrewd business men. The poi'iey of the Board was condemned by Sir George Elliott, Chairman of the Bank of Xew Zealand, and many others not even remotely connected with tho industry. But the Board refused to be guided in any wav. The Dairy Control Hoard never had the least hope of succeeding with its policy for it was fundamentally wrong. Now that the Board has had to yield to economic pressure, it would help to restore confidence speedily and recover the lostgoodwill if it abandons all ideas of absolute control and restores old marketing methods. The f.o.b. buyer has been hunted out of this country, and lie was an important factor in the business, for by contracting to purchase supplies ill Xew Zealand, he immediately became interested in holding up the price so that lie would realise a profit. The Auckland Branch of the New Zealand Farmers' Union appears to find in .Mr Stromieh Paterson flic scape-goat for the Board’s failure. Air Paterson is the Government nominee on tlie London Board, and receives a salary of £IOOO. In October last he ventured to cable liis opinion of the situation to the Board, and this opinion was endorsed by the Primee .Minister, who was then in London. Air Irons, a member of tho Board and of the London Agency, also agreed with Air Paterson, and wha’t is more the Board lias now been forced to do what Afr Paterson suggested. But recriminations will not help matters along. The Toss to the dairy farmers will he felt by the entire community and will help to make a had economic position considerably worse. What is to he done to meet the changed situation ? Who is to give the country a lead in this maicer? Dare we look to tlie Government or the leaders in business or to our bankers? It is a difficult position. THE WOOL .MARKET. The Loudon wool sales have witnessed a sharp rise in all classes of wool ranging from 5 to 71 per cent, with halfbred wools 50’s to 56’s showing tho greatest advance, the supply of this particular class of wool being below the demand. All crossbreds show an appreciable improvement, and the market generally shows a wonderful buoyancy, and this serves to emphasise the fact that Continental Europe is steadily recovering from tile effects of the great war. The masses of the people have had to make shift with clothing hut now they are able to buy a little more Ilian usual. Even Russia is now a i woolbuyer, and at the January sales lu London, and again at the current sates Russian buyers are operating. Their purchases cannot be very extensive, nevertheless their competition adds to the strength of the market. There is no credit given in the wool’ market so that, Russia is paying for her purchases with the promptitude of other buyers. Russia has been buying a lot of textile machinery in Englandand this makes it certain that Russia will he a constant buyer of greasy jrool. If the United States would consume her pre-war quota of wool tho position would improve vastly.