HIGHER PRICES.

Taranaki Daily News, 8 May 1920, Page 5

HIGHER PRICES.

WORLD SHORT OF OOODS.

NO IMPROVEMENT IN SIGHT. By Telegraph.—Press issii.—Copyright. Received May 7, 7.50 p.m. London, May 6 In the House of Commons, the Pood Minister (Mr. C. A. McCnrdy) said k ought to be realised that last year's expectations of a fall in prices were not founded on a solid basis, and ought entirely to be discarded. He was unable to understand how business men and statesmen could take such an optimstic view of the progress of the reconstruction of a war-devastated world.

There was no prospect of an immediate improvement either in supplies 0! in the price of sugar required for Great Britain. The world production was down 3,500,000 tons. Rigid rationing in Greai Britain resulted in economising the consumption of sugar by 700,000 tons, but this was exactly counter-balanced by increased consumption in the United States.

Wheat prices were a most important factor determining wages all over the lvorld. The world's wheat crops would be reduced during the forthcoming twelve months. The United States exportation would be 4,000,000 tons less than the current cereal year. India was the only wheat-producing country where an increase was foreshadowed, but the 1,500,000 tons increase would not be available to any extent for exportation. He dwelt on the likelihood of a rise in prices in importing countries, which wbuld be reflected in the price of every other commodity. He estimated the supplies oi butter for Great Britain in 1!)20 to be 100,000 tons, compared with 200,000 before the war years. The Britsh butter production was still below the pre-war rate, and the Irish supply would also largely fall. There were no clear signs to enable him to give an estimate when the world shor; - age was likely materially to improve.— Imperial Service,