WELLINGTON NEWS

Hokitika Guardian, 23 July 1929, Page 5

WELLINGTON NEWS

SUBSTITUTES AND PRICES. (Special Correspondent.) WELLINGTON, July 21. Figuratively speaking there is always in evidence a war between producers and consumers, and it seems that in the long run consumers must win. During the war consumers were cruelly exploited, but they are now beginning to have their revenge with the aid of substitutes. Owing to the high prices and difficulty’inVobtaining butter , during the war, the consumption of margarine was • stimulated and now it is said that margarine was becoming a real menace to the butter trade for it was dinieult to tell the difference between margarine and butter ai\d au.th-f critics sVte that its nutritive value Ms > just as great as that.of butter. /The margarine combine in. Europe is a very powerful one, witli practically unlimited resources and is able the sale of its product with vigoih* and cess. If margarine is just’ fijs good as butter, as it is claimed to be, it is cheaper and therefore hasja'strong appeal to the consumer. The competition of margarine keeps the price o>f butter down, for the moment the price advances those who are unable to afford the high price switch on to margarine, and as the consumption ef but-) ter declines stocks accumulate, and to • stimulate consumption prices must be reduced. It is a sort of vicious circle. Empire Dairies, Ltd. which lias been sponsored,by Mr W. Gopdfellojv^ffnd.’j has received the benediction of W. Grounds, has for its purpose co-ordin-ated and co-operative marketing. Price control on the lines whick.proved such a rank failure when attempted by the Dairy Control Board, will no,doubt be- w: the principal policy of the new organi- ! - sation, for those connected with it were closely associated with the Dairy Board and its policy of price-fixing. Hf price control is to be the policy, and that seems probable, it will result in a further stimulus to the consumption of margarine. t

Wool is undoubtedly feeling the efforts of wool substitutes, and the substitutes have been called into existence by the high price 'of wool. There was , one year in the early post-war period Avhen-'the 'average price --of'-New-Sea-'" *’ land crossbred wool was returned at £35 per bale. The development of rayon or artificial silk has been sensational, and that is not a matter of / accident. The product was needed to supply the people-witE an article more ~within their iheans; ssmoW|.| v . are ,n;akihg up Jfcp/jfclje; jfict that jl rhyon is dirqcljly’ responsible j thqji heavy fall. that- /has', jtakefi! pl’a'qe. : in prices’ elf all';gfades’:pf^woo4j|i , pd,i‘to counter this ah advertising campaign ’ ''.") on a large scale is now under serious \ v consideration. But rayoji is ~not the' only competitor that wool has to contend withjVfor there is another fibre jF /known as “|3tf£p-!”Mhat;V|ll £iave|jto be ifii contended with in /the 'lieaistfuinre. . |[| In May last the N.T. Artificial Wool , ; Cpy.,,was. in,Londpn to. wiW g; from: the i-Te’xtiles a {$ the cheimical;and invented' by Monsieur Joseph” Yiailet, of Paris, for the manufacture of an, 33 artificial wool, or substitute for wool. ivL It is stated ! that "the -jmlcesses have been developed from the experimental 1 j/i .’•to- ’the commercial'* stage,’and that -K) tests carried out by various firms of jU wool’ spinners’ in Yorlckhir'e'are said to have been quite satisfactory. It was stated in a cable message the other day that a Tin Producers’ Association had been formed in London Ifor the protection and betterment of the tin industry. Aluminium has been the competitor which has made tin somewhat unprofitable to the producers. Co-operation of producers will, it is believed, overcome the difficulty by regulating the output, but co-operation is a policy with certain inherent dan-. , gers, particularly the danger of ovef- * enhancement of prices. > %„• Now it is stated that a substitute’ Yj for building timber will be coming op ;> ?;■ to the market. A new use'for waste »?* straw will be developed by 'a company yf incorporated in Regina, Canada, for ; - the manufacture of strawboard to, replace ordinary lumber in the construction of buildings and one machine has „ . recently been placed in operation on a firm. The patented' production is call- N ed “ Solomite.” Ine machine it is . )•< stated compresses the straw under a pressure of 1001 bto the square inch, ij the product being laced with wire aha turned out in board 14ft long by 9ft., i:s wide and two inches thick. The ma’cn- A; ine turns out 4000 square feet.of ■ y strawboard a day. It is contended that the product is fireproof on account of the pressure to which it is subjected 7, and that it possesses insulating qualities to a high degree. The menace of substitutes should convince producers that to be successful it is necessary ■ ever to be on the alert to reduce costs) of production and thus cheapen the product so as to bring it before a wider circle of consumers. | Trying to “ keep up prices ” or stabilising iq more or less a Bedlam policy.