RETAIL PRICE

Hokitika Guardian, 22 June 1932, Page 8

RETAIL PRICE

SOME GOVERNING FACTORS

LOCAL INDUSTRIES IMPORTANCE

CHRISTCHURCH, June 20.

The disparity between the prices of farm produce and the prices of manufactured articles was di.seul-.9-d on Saturday by Mr C. M. Ollivicr, nu.n'ging director of Woot-ton Tanneries. Ltd. He said that 'the difference between prices of raw materials and retail prices'was due, in general to factors over which neither, the mam.fa - turei-.j nor the retailers had control. •Mr Ollivier referred particularly to some ' recent comments by the Hen Adam Hamilton on the subject. “Mr Hamilton found it difficult tc accept the business man’s point oi view,” said Mr Ollivier. “He leoke at things from the farmer’s viewpoin 1 He could not understand the die ere pancy between the prices the primary producer was receiving r.ncl the re'.a ! ec.'t of -the manufacured article. Mi Hamilton’s inquiry is only a natura cue, and one that is puzzling to tlu general public. It is to be hope: that, now he has opened the question bo will continue his investigation? further. He will find that neither the manufacturer nor Hie retailer -«s responsible, and will be able to dispel the illusion that exists in the minds of the farmers, whether prosperous or not that the people who trade in - his products are profiteers.

A POLITICAL FOOTBALL. “One of tne Desetting sin ß of this country W the fear that someon may make a profit. Off and on for sixteen ■ years, the farmer-politician has 111 tide ;i political football of flour millers, balcere, tanners and boot manufacturers in particular, and loefti industries : in general. After manyears of great prosperity,' in which the whole community joined, the farmer is up against it. Everyone knows this, and % willing to make sacrifices in order to 'help to .solve' the farmer’s problem.: l , but no good can be server by these continual attacks on other people. The countiy ig in an awful mess, for ! the simple reason that everything is out of balance. It really is an accountancy problem, but, unfortunately; : the principles of accountimey have been ignored, 'and instead of balancing the ledger by looking for illie errors, ■ > the balance has bee. struck . by compensating error;-,

J “During the war period the tunnel'?' —the industry\in which lam inter ist cd—didn -a. . -great national' service. Their reward was abuse. If Mr Ham ilton studies the position he will com'" jto the conclusion ‘that New Zealand 'should not.. Import a piece of hid , leather, and' should actually export ( leather. Tins'■ would mean increasec I employment, direct' and indirect, in- ! creased revenue for the Government both direct and indirect, and at the same time improve the country’s trad 1 balance. , ;

FARMER AND UNEMPLOYMENT " | “The great'■"problem to-day is unemployment. The farmer can never become prosperoi',s a., long as unemployment exists. Look at it whichever way you will, the burden will ultimately conic‘on to the land. If tin tardier i.vre wise he would encourage utleiv to become prosperous 'So ns to relieve him of his burdens. 1 often wonder if the farmer realises that lias land is freehold in name only and if tile country wore reduced to a popu'atien of farmers and those who give maw-ire to til m what the position would he. It must not be overlooked 1 bat a very big proportion of the fanner’is products are consumed by the local people, even the employees in I, hops. Surely it is better tot exchange his products for products produe d by the local manufacturers than to force the local man to go back to England and exchange his products for gootl 6 produced by there turned immigrant in England. It must not be overlooked that tile Goiernment imported 15,000 immigrant uhL they cannot all be farmers. “Now as regards leather, 'the tanner cannot be responsible for the following, which all affect the prices of leather and the price paid to the farmer:— (1) A hide is a. by-product and is a perishable article. It of 75 per cent water, hair .and dirt, and 25 per cent of true substance. o\ei 50 per cent of the 25 per cent i« inferior and is termed offal. Branding, bad flaying, and barbed wire scratches depreciate the good part of the hide aiuL in reality, -o to speak, increase the offal. (2) Arbitration Court award conditions and wages. <■)) Tran.xport charges. (!) Taxation. (5> Cost of coal and power, (fi) Cert of material. IVOR CD’S RARITY.

“The farmer i r , always talking about baaing to accept the world’s marke's. 'Tim tanner lias at oto accept tli world’s parity, and in 1020 th m country was used or the dumping ground I'jor Australian leather and boobwhen the London market and South \iViean nwr I 'cts were cut *fl- C 1 protection afforded the tanner k only a set-off a turrit t>" ,1-ti Om-y expenses over which be ha<- 110 control. The fluctuations which aflcit the larment affect ' the tamer al-.0, only more . 0, and yet we have the farmer continually advocating protection and freedom of contract for himsrll and free trade and restricted nn lits for the other follow. «