INDUSTRIES AND COMMERCE

Southland Times, Issue 18843, 8 June 1920, Page 2

INDUSTRIES AND COMMERCE

SUGGESTED STATE INNOVATION. BOARD OK TRADE REVIEWED. ‘lt has been long evident,” remarked the chairman (Mr M. Carr) of ihe Wellington Chamber of Commerce at the annual meeting of that body, “that commercial activities have outgrown the continuance of industries and commerce as a branch of the Agricultural Department, and the disunion is abundantly justified. The new Department has great possibilities before it. Much of our domestic legislation affecting commerce requires overhauling. There is much to be done in connection with freight arrangements in Government subsidised si rvices. Reliable and regular information regarding trade conditions and possible markets overseas should be made available. In fact, there is no reason why the Department of Commerce and Industries should not develop into one of the most important Departments of State. At the suggestion of the chairman of the Board of Trade I understand it was arranged at the last conference of chambers of commerce that the advice and opinion tn the executive of the Association of Chambers of Commerce should he marie available to th? board should they desire to confer with it. I understand that this now is being done, and I believe the arrangement will be to the mutual benefit of the board and of commerce generally throughout New Zealand. “Tire other aspect of the Board of Trade Act,” added Mr Carr, “which is of interest to the commercial community is that portion of it which deals with inquiries and investigations. During the past few years it is generally agreed that the Board of Trade has done very useful and commendable work in the various investigations it has undertaken. I would venture to point out that however expedient it may lie in abnormal times such as these to regulate or fix prices, as a general matter it is an extremely dangerous practice. I believe 1 express the opinion of the commercial community when I say that commerce should he as free anti untrammelled ns possible—through competition prices will find their own level. “There is also the off shoot of the Board of Trade —the various price investigation tribunals which have been set up in the chief centres. I take it that these tribunals arc 'to round up the black sheep.’ They probably will do a very useful work in tiding as a check against any traders who may endeavour to take undue advantage of the abnormal times obtaining. I do not propose to dwell on the question whether these tribunals, in arriving at what is a reasonable profit, should consider the profit only in relation to the cost of a particular article, or whether the replacement cost is the fairer basis. Neither basis is without its objections. Is the question rather not one of whether a trader in respect of his particular business or department of business is making abnormal profits in view of all the circumstances surrounding his trading conditions?”