THE BUTTER TRADE.

Taranaki Daily News, Volume LII, Issue 76, 26 April 1909, Page 4

THE BUTTER TRADE.

IS THERE DANGER OF A '■cornku." A NOTE OF WARNING. Du tied hi. April 21. The Star say:-:—Though it would be i very unwise and undesirable to create I an unnecessary scan?, it is time that warning was given of the danger of a market corner'which appears to threaten the best interests of the butter ; trade, The damage may not be very advanced yet. but that is only because such a scheme would take some time in perfecting. An organised attempt, it is asserted, is in progress to manipulate th e liulter market, -and in *uch a way that the industry would become the preserve of a few speculators, to the disadvantage of the producers of Ne»w Zealand generally. Reports have beeu circulated stating ! that tile butter now on the London market is of an unsatisfactory quality, containing too great a percentage of moisture. It wa,s most likely that the fact* have been -exaggerated, and that there is not nearly .so much importance attaching to the alleged state of affairs as some would be pleased to have sellers believe. In any ease, it is probably a repetition of the policy on a falling markft of finding that the quality is. bad. Jt generally happeus. We have had a succession of particularly | good years, and the slump, oven if i real, is not a had one. after all. com* I pared with the big slumps of some i years ago. In any case, it is too late I to seriously influence the ruling rates upon the market, as practically everything lias been sent to England that was required for local consumption and African orders. The determining factor as to whether butter will he a little short or not will he the ve.athev. At present the cold is rather severe for the time of year, and if we have a cold and •otherwise havd winter, no doubt t'he milk yield will be all'ected to isuch an extent that there will be a winter shortage. The fact seems to he that the '"bears" at work upon the market here are making an attempt to bring the price dmvn, and this is accountable for the amount 1 of talk about slump prices. Speculators are working with a view of coming in and reaping a later rise. It .would appear that a "corner'' is being tried for. Imt the speculators and would-be manipulators will probably iiiid that the interests in New Zealand are too widely diffused. It in improbable that there • will be any increase in prices this win--1 ter under exceptionally favorable cli--1 matic conditions; a light reduction in price may come. Last winter a scare I was created through a fear being raised « that there would he. a considerable ; shortage of butter in Australia. This i shortage wa£ only partly realised, and * price* receded very much quicker than I was expected. Some years ayo there i j was every indication of an attempt to - make a "corner" In hntfer, but on that i occasion the industry 'was not adversely .affected.