ECHO OF THE STRIKE.

Pukekohe & Waiuku Times, Volume 3, Issue 224, 25 August 1914, Page 3

ECHO OF THE STRIKE.

E'fect on Butter liulusti-v

What it Cost Dairymen. Mr Spragg had fome interesting things »o ssy the other day when addressing shareholders of ihe New Zealand Dairy Association. Referring to the lati strike and i's effect upon the butter market in England, Mr ripragg said: — "Although I only know of what took place here by hearsay, I had directly the ODportunity uf km*irg the influence of tte strike on the market? for dairy proiuce n England, and coming as it did just after the opening of the seafon's trade, that influence was very hurtful indeed. New Zealand's butter and cheese ware beginning to take their usual places in the eupply of tiade, and quantities were beginr.irg to increase in sympathy with the advance of the season, ar.d the increasing d:mand in England, when suddenly our ports were cks:d and supplies of our produce were cut eff from the London market. That had tbe effect of stimulating the sale of butter substitutes and also of introducing Australian cheape-, and at the same time poorer, butter, in placa of the New Zealand butter which was wanted. The story, is a long one—too long tor me to give it in full, but as briefly as I can tell it t& you it is this:—

"Adjustments which always take place when the ordinaiy is out of gear met tbe absence of our New Zealand produce and when the Dominion ports again opened, and the immense accumulation of your Ireczing stores began to find It? *ay across the seas, it found many ot the usual avenues occupied and had to wait and ask for the d:ors to be opened again. A belated commodity asking for admission does not get the welcome which one that can be depended upon to arrive as required does. It has to seek for channels and to give concessions for the purpose of opening them up, and, when that time arrives, if there is a glut the consumer can si ways score off the producer ar.d always doep.

"At one time there were over a dozen New Zealand steamers laden with butter and cheese en the water—six arrived in England in ten days. The papers kept the English people advised of every pound landing and afloat and because it looked certain that prices would be leduced, buyer* held off or took hand-to-mouth qusntites and thus anticipated ard accentuated the glut which was inevitable, ard the rrarket, a 9 you are aware, became demoralised.

"We sometimes have hard things to say about the speculating middleman, and 1 daresay that some time or ether they deserve it all, but if the men of foresight and means, the speculators in fact, had not revived the market at that point by clearing up some of the accumulations at low rates, and putting them into store, taking the risks of deterioration and market with a hope of a possible rise later on, the prices would undoubtedly have gone much lower. That, however, is by the way. My story ends with mv telling you that a most promising marketing season was entirely spoilt because of irr.gularity in deliveries caused by the strike, and our shareholders are in consequence the poorer by a half-penny per pound upon every pound of butter-fat which they produce! last season. If that is so (and the estimate is not far wrong) then their direct money loss was £25,000 and the Dominion's similar loss was proportionate. I am not now called upen to reler to the disaster of our closed port excepting in as far as it influenced your business. Referring to that only, while advising you of your heavy losses consequent thereon, I may once more congratulate you very sincerely that the period of deadlock was not permitted to extend itself. Weeks, instead of days, cf the accumulation of your produce in New Zealand would have meant ruin to thousands tt producers, who are the backbone and stay of the Dominion.

'"lhis reference to loss owing to the London market no*, readily absorbing our delayed shipments aud the consequent opportunity thus given to the speculator, opens up the general question of marketing in England. This is one of the questions which it was my duty to investigate during my stay in London. The remedy which suggests itself is that the owners of the butter should themselves either as individuals or in combination hold it until a suitable market presents itself. This would lie the proper thing fur New Zealandors to do, if they had the financial means either of cash or credit to hold immense stocks of unsold goods, and then ability equal to tho combined ability of the persons at present acting as speculating middlemen, to lind and take advantage of tho market at tho right time. This wuull require willingness on the part of tho rank and file suppliers lo take all the risks of tho market, plus the risks of deterioration of tho goods. As at present situated, our people aro not likely to agree to do this, The risks of the maiket would of course be greater than they a r e now in proportion as the interests of the speculators in bulling markets would then bo converted into antagonistic bearing influence. It is in v lived opinion that lhe merchants, middlemen, agents and speculators', who have in some cases been engaged for several generations in building up their businesses, and buttressing them with empire wide ramifications, are not going to be extinguished on the fiat of New Zealand producers. If this is a correct conclusion, it will suggest that it will ho good policy to treat these people with respect and consideration, that is, to treat them as friends, friends who perhaps will lie the better for being watched, but after all friends and in the final distribution of our good*."