The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, SEPTEMBER 2, 1930. A POSSIBLE TREND.

Hokitika Guardian, 2 September 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, SEPTEMBER 2, 1930. A POSSIBLE TREND.

The trend towards control in marketing national production is.highly possible, in view of surplus production of commodities in some many different directions. The successive glutting of the market as a result either of overproduction or the inability of former markets to absorb the goods, is bringing to most countries occasion for serious thought as to an adjustment of trade whereby more normal conditions may prevail. ..There are already several examples of control along the lines indicated, though it cannot be said that the experience so far is altogether satisfactory as offering an ultimate solution of the economic troubles created by the internal congestion. In both the United States and Canada there are wheat pools. Australia is attempting something similar, and Argentine considers a policy inevitable. The Labour Government at Home speaks of mass buying, in regard to foodstuffs for tbe Homeland, and in various other directions this matter of market organisation is of serious concern and a great import as affecting possible future prosperity. The British idea of mass buying of foodstuffs would naturally be acceptable to New Zealand, for it is certain that Empire products would be in favour. The Labour Government is being forced in the direction proposed by the counter political move of a large section of the Conservative opposition which definitely favours taxing foreign fcod ‘imports as another means to encourage Empire production and trade. This is the definite policy of the Beaverbrook section, and this policy, though it may not come to pass, is having already a definite effect on the Government policy which is shaping towards mass buying from the Dominions for the bene..t of the people. This subject will be in the forefront of the Imperial Conference to sit in London next month, which fact makes it all the more important that Mr Forbes, the Prime Minister, should now lie speeding to the point of rendezvous. At the recent meeting of the. New Zealand Co onerativo Dairy Coy. at Hamilton, Mr w. W. Goodfcllow, so prominent in the dairy industry in the Dominion, gave particulars of combined buying by the trade in Great Britain already, and

expressed the view that that combina-

tion should lie mot by a selling combine on behalf of the Company's-pro-duct. The Company last year had a turnover of six and a-half millions, and an output exceeding 44,000 tons of produce, so that the necessity of effective marketing is manifest. In regard to world trade and production, the living conditions of the country of production naturally enter into the commodity price—that of course combined with transport prices and facilities. Under this heading there are many foreign competitors to be considered with the colonial article, and for that reason any State scheme of bulk buying over the Empire is the more acceptable because the sellers will be on a more leve 1 standard of living, am 1 there will lie less cutting of prices. Nnturalv the very complicated nature of finance all over the world affects the economic view of anv scheme ; but it is a fact that abnormal foreign competition has now to he faced in regard to all forms of primary produce. This means keener competition than ever, and because of that fact, prices must be deflated for some time when compared with the period of high prices now fading into the distance. It is of course not wise to restrict production with so many competitors in the field. That action would not- help, rather otherwise. New Zealand has trtn definite iii a policy of British preference, a lid the present Governmout Is strongly sound on that point. Mi* Forbes can therefore enter any bargaining chamber for Empire trade with a strong' argument in favour for Imperial support to New Zealand produce. Some large scheme along the lines of Inter-Tmporial trading gives the greatest hope of success nnd benefits to producers. Isolated countries off their own resources attempting to control trade or prices are doomed to failure. It must be on a large scale and with an ample produce backing to ensure the respect and advantage of possible markets under such an all embracing scheme of Empire trade.