Manawatu Herald. TUESDAY, SEPTEMB 14, 1920. THE PRICE OF BUTTER.

Manawatu Herald, Volume XLII, Issue 2176, 14 September 1920, Page 2

Manawatu Herald. TUESDAY, SEPTEMB 14, 1920. THE PRICE OF BUTTER.

THERE are ominous rumours alloat re the proposed increased price to be charged for butter. Some time ago it was rumoured that if the present retail price of butter was increased the transport workers would declare butler for export black. We learn from a contemporary that “the railway men have; decided, in the event of butler advancing to a price above a certain limit at the end of this month, to declare the commodity black." A hold-up of butler for export would be a serious stale of affairs for dairy farmers, particularly those who have taken upland at boom prices. Parliament has set up a committee to go into the question of fixing the price of butter, and failing a satisfactory solution we fail to see how direct action on the part of the transport workers is to be avoided. The masses refuse to pay a price for home consumption based on the abnormal demand and high prices of the English and Continental markets. Referring to this subject in a recent issue, (he Auckland Herald says: “Tin.: stocks of butter which arc now being used to supply the New Zealand market will be exhausted about the end of this month, and when that point is reached the question of an increased local price will have to be faced. On the export price now offered by the British Government the local price must advance at least Is per lb. even if the Government continues the present subsidy, which is equal to twopence per pound. In such circumstances how is the committee, or the Government, to satisfy both the butler producer and the butler consumer? The position is about as good an illustration as could be got ol the mistake made by (he National Government when it 'refused to consider an export tax. Over and over again the advantages and equity ol an export tax were staled in these columns. but Sir .Joseph Mat'd replied scornfully, and Mr Massey gave no sign of assent or sympathy. Now it must be evident to everybody that such a lax would have reduced the local prices of all New Zealandgrown foodslnlls. it would have steadied land values, and it would have brought a substantial sum to the Treasury by way of taxation. It may be said that the course is still open. To that there is the objection that great numbers of producers have paid for their land prices that would never have been attained had the advisability of imposing a small export lax been laced at the proper time. Farmers claim, and with good reason, that on present land values the producer needs the full market price for his products. It is a situation which oilers no easy way out; indeed, it is certain that there can be no way out short of a substantial rise in the local price of butter.