15

H.—44

The Government afforded every facility for the mission to obtain information regarding the trade of the Dominion by arranging for a personal inspection of the leading industries and development works in the North Island, and in addition supplied comprehensive reports. CONCLUSION. This report does not refer specifically to more than a small portion of the diversified, work undertaken by the Department. It should be clearly understood that the present organization and staff of the Department does not permit of continuous supervision of prices and conditions of sale of all commodities throughout the various centres of the Dominion. Inquiries are made when and where this course appears to be necessary, but in general the Department believes that the force of unrestricted competition provides an adequate safeguard to the interests of consumers, and that there should therefore be no necessity for official interference in trades and localities where evidence of combination between traders for purposes of price-control is entirely lacking. An example of the Department's policy in this connection may be cited in the case of retail prices of meat in various towns. Where inquiries have been made the evidence, and also the marked disparity in the prices charged by competing firms, has indicated that free and in some cases keen competition has operated ; consequently in such cases no official interference has been warranted. It is, however, abundantly evident that the tendency towards price-maintenance and the restriction of competition by varying forms of trade associations is a growing factor in our commercial life. The operation of the " law of supply and demand " is to an increasing extent conditioned and set aside by the co-ordinated action of manufacturers and traders ; and, while the benefits arising from the formation and operation of combines and trade associations are of great economic importance, the necessity for official supervision and safeguards against the abuse of monopolistic powers increases as free competition loses its force. The supporters of the policy of non-interference, with trade, lose sight of the fact that freedom from public control will mean in many instances not free competition but concerted or unified control by private interests. If business conditions necessitate or make economically advisable, the fixation of prices by any organized body, it is necessary that such fixations should be subject to Governmental supervision to safeguard the interests of consumers. The Commercial Trusts Act, 1910, and the Board of Trade Act, 191.9, give ample power for the maintenance of healthy business conditions, and. from time to time legal action has been taken under those Acts. The Department, however, favours a policy which will enable manufacturers and traders to secure for themselves and for the community all the benefits of combined action, and at the same time check the tendency towards the abuse of monopolistic powers. P> The Department is therefore endeavouring, to the limits of its capacity, to prevent the adoption of unfair methods of conducting business, and is also dealing with any instances in which unreasonably high prices appear to be charged. At the same time the constructive work of the Department is being carried on, and everything possible is being done to assist in promoting the welfare of the trades and industries of the, Dominion. For the Department^of Industries and Commerce. J. W. Collins, Secretary.

Approximate Cost of Paper. —Preparation, not given ; printing (850 copies), £17 10a.

Authority: W. A. G. Skinner, Government Printer, Wellington.—l 923

Price 6d.]