WELLINGTON COMMENT.

Auckland Star, Volume LV, Issue 248, 18 October 1924, Page 43 (Supplement)

WELLINGTON COMMENT.

THE BUTTER MARKET. HIGH VALUES PROBABLE. EXCHANGE ON LONDON. Telesrapn.—Special to "Star.") WELLINGTON, Friday. The strength of the butter market, while very pleasing to all concerned, is somewhat puzzling, and very few care to make predictions as to the future. The market is still suffering from the effects of the war. It ie only within the past two years that the imports into Britain have exceeded the imports for the year ended June 30, 1914, and the excess ie very small. _ In the meanwhile the consumption has increased with the increase of-population, and the increase in consumption is shown in spite of extremely high prices. It may be said that production is still below the volume of consumption, and it will probably take another year or two for production to overtake consumption, and to provide a margin for adverse weather conditions in the countries of production. It is very probable that the current season will see values high, perhaps not quite as high as they have been, but that, of course, will depend upon the volume of supplies. There is certain to be violent fluctuations because of the impossibility of regulating shipments from the three producing countries in the Southern Hemisphere, New Zealand, Australia and the Argentine. Exchange Difficulties. The difficulty of arranging the exchange of credit between London and Australia, and London and New Zealand has been emphasised by a further advance in the Australian rates. The Australian banks raised their rates by 5/ per cent all round on September 29, and made another advance on October 15; this time the rates were raised by 10/ per cent. The New Zealand banks responded to the earlier advance on October 6, and it remains to be seen whether there will be a response to th« further, advance in the Commonwealth since announced. It can be stated with certainty that the banks in New Zealand have been endeavouring to keep the txchange rates down, but the position.is really beyond their controL They must keep step with Australia or lose heavily. The associated Australian and New Zealand banks in London are in the same awkward position, and they have responded to the Australian advance by raising their rates. The exchange situation is decidedly bad for the exporter and producer, and it ia perhaps poor consolation to indicate that the rates are much lower in New Zealand than they are in Australia. All sorts of expedients are being adopted in the Commonwealth to secure credits, and it is stated that buyers of wheat, who must purchase as soon as the harvest, are exchanging £100 in London for £96 in Sydney and Melbourne. Some French woolbuyers are said to have brought out French merchandise which has been sold in thff Common-' wealth, and the proceeds are being used for buying wool. Manufacturers Resent Criticism. At a recent meeting of the Wellington Provincial Association umbrage was taken at the alleged unfair criticism of the secondary industries of the country, and the opinion. was voiced that the time had arrived for manufacturers to combine in their own interests, and the acting president, who introduced the matter, said he favoured working in with the Depajitment of Industries and Commerce in placing the true position of the manufacturers before the country. The advisory officer of the Department, who was present, lather favoured the dissemination of techmeal information to manufacturers, the kind of technical information, made in America where they can assemble a '■'Prince of Wales" motor car in twelve minutes. It was also suggested that scientific research would be helpful, but it was pointed out that Professor Easterlield, of Victoria College, used to take his classes to various factories to give them practical experience. As soon, however, as the professor commenced to inquire into costs the manufacturers closed up like oysters. The president of the .Employers' Federation recently stated that at present wages of those engaged in the primary industries are disproportionate to those in secondary industries and as the prices of primary products are determined by the world's markets higher protective duties are not justifiable.