The Daily News. WEDNESDAY, DECEMBER 29, 1920. DOMINION PRODUCERS' PROSPECTS.

Taranaki Daily News, 29 December 1920, Page 4

The Daily News. WEDNESDAY, DECEMBER 29, 1920. DOMINION PRODUCERS' PROSPECTS.

The speech recently delivered by Sir Thomas Mackenzie at Ashburton should go far to cheer the producers of New Zealand. The subject is one that the ex-High Commissioner is particularly qualified to deal with on account of his exceptional, knowledge of all the facts and, conditions at this end and on the world's markets. The conclusion arrived at by Sir Thomas was that the future was full of hope. Britain is the chief market for our produce, and as he considers that the Motherland js becoming re-invigorated, and with fine men at the helm should prosper, the outlook is certainly encouraging. In expressing the opinion that the chief fault of departments controlling prices in Britain was their tendency to hold up instead of distributing, Sir Thomas undoubtedly named the dominant factor of the present unsatisfactory condition of the Home markets so far as the produce of the Dominion is concerned. Botli their meat and wool operations are outstanding examples of how the producers can be adversely affected by the unwise policy of holding up, the condition of the meat suffering so seriously as to force it into second place and create a prejudice against it that will not be easy to obliterate, while the hold-up of the wool lias produced a congestion that, for the time being at least, has caused the markets to be lifeless, aftd the product to be unsaleable except at ruination prices. Apparently the present wool crisis is due to good intentions being thwarted by maladministration, the Government's policy being to reduce (he price, while, by the Department's action, it was increased It is no use at this stage wasting energy .in dispoyerias the parties respoasible

for such foolishness. The mischief is done, and it is far more to the point t,o devise means that will enable recovery to be made and the wool market once more placed on a business footing, The Imperial Government cannot be blamed for endeavoring to make a profit on Australasian wool. Britain lias had to bear, the brunt of a war expenditure that has been colossal, and badly needs all the revenue that can be obtained. That, however, is all the greater reason why* in controlling the wool market, extraordinary care and foresight should have been exercised so as to' stimulate the demand instead of creating a slump that caused wool prices and demand to reach a vanishing point. Whether either of the proposals to give long credit to German manufacturers, or to get German mills to work the raw material up on Britain's behalf, will materialise has yet to be demonstrated, but there is no getting away from the fact so clearly emphasised by our ex-High Commissioner, that "the situation can only be eased by wool going into use.'' Speaking from, his long experience in the Homeland, and with accurate knowledge of its markets, Sir Thomas Mackenzie asserts that the Dominion's produce has no superior on the British market, and must secure the highest class of purchasers. Such a pronouncement lends weight to his further assertion that the future is full of hope. Naturally this optimism must be based more or less on whether the interests of New Zealand producers are fostered wisely and well. Sir Thomas would not leave this important oversight, to chance, and in this there seems to be businfess-lilie wisdom, hence his view that it would pay the Dominian to have a small advisory council at Hoqje, consisting of men familiar with the work, and presumably having the confidence and backing of the New Zealand Government as well as of the producers. The suggestions are well worthy of favorable consideration, not only by the producers, but by Dominion importers, as both could materially benefit by the services of such a Council, the need for which is as evident as it is urgent.