The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 19, 1933. THE HOME MARKET.

Hokitika Guardian, 19 July 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 19, 1933. THE HOME MARKET.

It is a fortunate circumstance that tne Prime Minister (trie Hon G. W. x’orbesE and Minister for Trade (the Hon. R,.. Masters) are on the spot at tiome to discuss the proposals in regard to trading quotas. Both are well qualified to speak in regard to the primary products of the Dominion, and they may be trusted to place the fullest details before the British Ministry. British produce hag increased in volume, as well it might, following the experience of the war period. At the same time other countries have increased also, and the British market was a handy and. safe locution for realisation. The Domiu* ions likewise showed large increases, ami ; the combined effect has been to glut the market and depress prices, There is little doubt that in the matter of food supplies, the over production has been the chief factor jn controlling prices, due to the surplus produce being ruished to the tiome market where prices are generally accepted as the rate for world parity. It would appear to be essential to control or regulate imports of produce into Britain, or the farmers are going to be affected seriously. The Dominions desire, if there is to be regulation, that it should apply in the first instance to foreign suppliers, because of the Ottawa trading agreement. But since Ottawa transpired, Britain has made important trade agreements with Denmark and Argentine, notably, and these are serious rivals of the producing Dominions in regard to dairy produce and meat supplies. Britain has heavy financial arrangements with most of her trading customers. ■ The Dominions are largely involved,- likewise Argentina, in financial obligations to Britain, and unless there are facilities for trading goods to Britain, debts cannot be met. The situation is therefore a delicate one, and Messrs Forbce and Masters being alert as to the position can put forward strong' arguments to support the unrestricted entry of New Zealand produce. But it does not follow that they can be wholly successful. Australia, Canada, and South Africa are equllv concerned with New Zealand in the trading relations, and the unity of the family relations should be a helpful aid to a greater measure of success. It will be rather a setback if production is to be checked. New Zealand depends largely on the produce of the land, and to that end has raised many millions to help settlement. There is a large debt for land settlement on which interest and annual charges have to be met, and if exports aro curtailed seriously the financial result will be most embarrassing. \ A partial check in exports of wheat is now almost cert'in, and one reaction is that less wheat will he planted in New Zealand this coming season. This cannot be good in the long run, and the general effect will he had. So far as the Home market is concerned the Prime Minister and bis colleague have the opportunity of probing the whole matter fully, and will return well informed as to the true position. It will then he their task to shape a policy boat suited to the general situation.