WELLINGTON NEWS

Hokitika Guardian, 30 March 1927, Page 4

WELLINGTON NEWS

THE BUTTER .MARKET. (Special to “ Guardian.”) Mr William lorns, Cliairinan of llie London Agency of the Dairy Control Board, wlm in October last indicated his opposition to price fixing, and who requested to he recalled to the Dominion if the price-fixing policy was to be maintained, in a .statement recently issued for publication claims “that the great majority of all branches of the trade are now doing their utmost to assist the New Zealand producer ovc a very di .flicult position, caused hv the unfortunate policy of the Board.” In this he is probably correct for the market movements since price-fixing was abandoned have been quite normal

under the circumstances. Forcing .supplies oil the. market brought- down the price, and as these supplies were taken off the market, prices improved. The demand for the moment has .slackened and there has been a slight casing of prices which, however, are still good. The trade could have continued its boycott which its success fully maintained for over two months, taking only a minimum of New Zealand butter. The present state of the market is a triumph for free marketing, and in the opinion of some experts it is believed that the goodwill of the trade could he completely recovered if free marketing were o* tab]i.shed entirely, that is to say. the restoration of the pre-control market ing conditions. A point that is causing some interest is the relation of the Control Board with its so-called official organ the “Exporter.” This publication is the property of a company or syndicate, and while the newspapers of Wellington are not privileged to send representatives to report the proceedings of llie Board, the ‘•Exporter” apparently enjoys the exclusive right to report the. Board's proceeding-. People want to know why this shook lie so, and who is profiting by this special procedure. The special meeting of the Board was held on March l-llli. when price-fixing was lifted, and we have had to wait until now for a report and one cannot make sure that the report is a true and unbiassed record. “The Dairy Exporter” though styled the official organ of the Dairy Control Board, really represents the views of Messrs Grounds, Goodfellow, Motion. Bryant and Thacker, who are all strong and consistent advocates of compulsory control. They are in a minority, yet their views get very full publicity. It is a somewhat remarkable fact the Government nominees on the Board, Messrs Hunt and Winks, voted for the removal of price-fixing, and Air Stronach Paterson, the Government representative on the London Agency, is also against price-lixing. .Mr Paterson is not in favour with the e niipulsioiiist. and in January last, on the return of Air Grounds, it was decided to writ to the Acting-Prime Minister, asking for the removal of Air Paterson from the London Agency. The reason give was that Air Paterson was not supporting the policy of the Board, and that being in the position of a salaried executive, the remuneration was expected to carry with it obedience to the instructions of the Board. Air Paterson, in October last condemned the pricefixing policy of the Board, and gave reasons for his views. The Prime Alin■ster, who was then in London, concurred in those views and so did A! fonts, and they were right. However. •Mr Paterson is not to he retired, 1 ■ it is a question whether some others on the London Agency should not h retired. The question of the relation ■f “The Dairy Exporter” to the Dair Control Board is likely to he raised in Parliament. .MONETARY CONDITIONS. Towards the close of this week lie Bank of New Zealand and the Nations' Bank of New Zealand will dose their annua! periods and the Bank of N< - Font!) Wales n ill a's.a balance. A certain amouiiL ol “window dressing” usual!;.- takes place when banks Balance, although it has not been particularly not iceah!,' in New Zealand in recent years. Nevertheless there is a tenTuii.v to straighten out advances and make things look good. Of course the balance sheets of the hanks mentioned vvi.l not be available for some time tcento, but the quarterly hanking returns which should be available in tl- - ol a lorlnighl or so should indicate the trend of economic conditions in the country. Borrowers are not

hmling it an easy matter to obtain money and the nrohnihlity is that rates "id tend upwards, hut a good deal will depend upon Australian conditions, for Australia to some extent dominates the New Zealand money market.