SOARING PRICES.

Taranaki Daily News, 20 January 1920, Page 4

SOARING PRICES.

ANOTHER ADVANCE IN TEA. TAKANAKI NOT AFFECTED. Advice of a further advance in the price of tea was received in New Plymouth yesterday, one leading packer quoting retail prices from 4/- to 4/0 a Hi. This only applies to one brand, and tea of equal quality can still be purphased in Taranaki from 2/0 to 3/- per lb.

There are several reasons for the continued advance in price. It was pointed out first that the importation of tea into Australia and New Zealand last year was fully 14,0G0,0001b5. short of that of the previous year. In consequence ol' this Australia, with her much larger population, had to draw on supplies from New Zealand, and in many instances consignments which were awaiting trans-shipment to the Dominion at Melbourne and Sydney were Bold to Australian merchants. Tile rate of exchange of the rupee to-day was 2s Gd, as against the previous pre-war rate of Is 4%d. As most of the Australian supplies came from Ceylon the increased rate of exchange naturally affected the price of tea.

On top of this there was a heavy drop in the world's production, and the quantity now being produced wa3 not sufficient for requirements. Then again the people of the United States of America had suddenly become great tea-drinkers, and consequently the people were consuming' much more tea thai) before the war. This was no doubt due in a large measure to the fact that the Brazilian coffee crop had verv largely failed 1 , and Americans resorted to teadrinking as a substitute. The production of tea had lessened considerably, and the demand within the last 12 months had probably doubled.

NO RISE IN PRICE OF BREAD. By Telegraph.—Press Association. Wellington, Jan. 19. Questioned regarding the telegraphed statement from Christohurch on the wheat situation, Mr. Massey said that the qualifying word "probably" should not have been used in reference to the differentiation in price for different kinds of wheat. He said that different prices would be paid, and this was part of the bargain made. It was represented to him that the bulk of the wheat grown in New Zealand, a.? much as SO per cent, was Tuscan, for which the lowest jjrice (7s 3d f.0.b.) was to he paid. Mr Massey added that the Government did not propose to stop the subsidy to millers. The price paid for New Zealand wheat would be averaged with that paid for the Australian wheat bought some time ago, which would reduce the selling price to millers to a point below the cost of New Zealand grain. This would dispose of the suggestion that there would be a rise of twopence in the price of the 2 lb. loaf.

THE SUGAR SHORTAGE. Wellington, Jan. 19. A statement regarding the sugar shortage was made public by the Prime Minister this afternooon. It states that since January 1 a Board of Trade officer has been associated with the Colonial Sugar Company in allocating available supplies. The Board's representative found the refinery working at high pressure' and that no stocks of refined sugar are being held by the company. Immediately, the refinery process was finished the sugar was dispatched for distribution. The allocation of domestic supplies is on a population basis, but supplies available for grocers at present are insufficient to permit them to fill orders for big lots. A reasonable allocation cannot be made unless grocers limit sales to parcels say to last the consumer for a week.

The Cabinet's instruction to restrict supplies for breweries and the sugarboiling industries was put into operation on the 12th inst., whereby it is hoped to meet the fruit preserving and jam manufacturing operations. This, howei'er, is only possible if reasonable economy in the use of sugar for other purposes is exercised by all parties. Arrangements have been made with the Union Company to provide special shipping facilities to enable supplies to lie sent to the South Island. There are indications that if the demands are within reason conditions will be normal in a few weeks.