FARM AND DAIRY.

Taranaki Daily News, Volume LII, Issue 89, 11 May 1909, Page 4

FARM AND DAIRY.

Tf the wiseacres would only wait intil the season is over, and then procure balance-sheets and reports of Hie various companies we think it very probable that there will be very little difference between tlie percentage of witter, which is indicated by over-run. in this year's make and that of the previous year when prices 'were phenomenal (fays the Opnnnkii Times). Jt may be interesting to compare tin* prices this season with those of last year during tbc boom in Febnturv. T.hev were as follow: Danish. 1H0S; 150s; 1!)(M, II.h; Australian. IflOR. 140s; 1!)()!). 104*; Ni'\v Zealand, 1908. 14(is; !!)()!». Il)(5s. The other countries which falter'for the London trade show a similar comparison. From th P above it will be seen that Danish lmtter. which we constantly hear is marketed on sound commercial lines, has suffered a drop from lofte to lJos, or equal to 3%d per poind. Ts it the waterlogging of Xew Zealand butter which has caused this drop in Danish butter, or is it other causes of which the waterlog theory scribe is ignorant? 'We incline very much to the latter Klca. Tt is J( well-known prtu -1 ciple of economies that prices usually are ruled bv supply and demand. When | the -demand is brisk and the supply no.;, mal the price usually increases. ' This, however, does not. apply to the apparent position on the of the past two- rear*. The supply during the yeir 1008 was rery much larger, w.licn the phenomenal prices were obtained, than it has boeri diirinsr the onrrcnt year when the slump ha* taken place. We takrj it fltit. for the previous year trade nmy\ havii been better and conse<pientlv an abnormal demand created which bu'mped tHe price* up. and correspond* inyiv during th P current season that trade has .been bad. and notwithstanding the shortage in supply, that the demand has been below normal and has Jwon followed bv lower or slumo prices. We shall mot be surprised when the dairy com] balance sheets are out for the pjjst reason to find that the '•oinpanies which have the highest overT, »n have oiitnined tnti market price for n » ir butte~. and if this proves correct tlrn the wit.er-logging theory on which ®o many eccplarji awav file sluuin will have the l.*ottonr knocked out of it.