PARALYSED.

Auckland Star, Volume LXIV, Issue 74, 29 March 1933, Page 7

PARALYSED.

BUTTER BUSINESS.

ANXIETY IN LONDON*

importers Urge Restriction to

Prevent Ruin.

NEW ZEALAND DOWN TO 68/-70/.

'United P.A.—Electric Telegraph-Copyright.)

(Received 10 a.m.)

LONDON", March 28,

A joint meeting of Australian and New Zealand butter importers discussed the present crisis in regard to the future prospects. It was resolved: "That under the existing conditions the meeting is of opinion that an improvement in prices of dairyproduce cannot be expected until imports have been reduced."

The discussion revealed a very definite opinion among traders that restrictions or limitations were inevitable if the industry is to be saved from ruin. The most prompt action by Australia and New Zealand is necessary, and the importers feel that the producers cannot have realised that limitation would not cause them serious hardship as based on the 1932-3 record season. Limitation, too, would prevent foreign dumping.

It is understood that the British Government fully sympathises with the Dominion producers, but its hands are tied by existing agreements, rendering it impossible to make any better proposals to the Dominions than has been done. The whole question, it is felt, is now in the Dominion producers' hands.

Importers are awaiting the outcome with extreme anxiety. Meanwhile the delay is practically paralysing business. To-day's price are: New Zealand, salted, 68/ to 70/; Australian, 66/ to 68/.

STAMPEDE ATTEMPT.

New Zealand's Reply to London

Resolution.

" BEYOND COMPREHENSION."

(By Telegraph.—Press Association.)

WELLINGTON, this day.

Commenting on the above cablegram from London, Mr. Brash, secretary of the Dairy Produce Board, said: " It was quite evident that an attempt was being made on the part of the importers of Great Britain to stampede the producers of the Dominion and the Commonwealth in connection with restrictions.

" When it is considered that the pro-' posed basis for restriction will not affect the quantities arriving in Great Britain to any extent till the end of 1933," said Mr. Brash, " it seems altogether beyond our comprehension that the present prices on the market should be so influenced by the decision of the producers." '

NO RESTRICTION ? Would Be "Most Discouraging," Says Prime Minister.

REPLY TO DEPUTATION.

"I hope we will be able to emerge from the situation without the imposition of restrictions on the supply of New Zealand dairy produce to Greet Britain," said the Prime Minister, Et. Hon. G. W. Forbes, when replying to a deputation yesterday.

Mr. Forbes said that the talk about restriction had had most disturbing effects, and it was the hope of the Government that a policy embodying that principle would not be resorted to. The view had been taken in the United Kingdom that something should be done to rescue the butter market.

"I am hopeful that the arrangement reached will not provide for any restriction, but one cannot say," added the Prime Minister. "The British farmers are having a very difficult time, and that is the one reason for the present proposal. The imposition, of restrictions on Our supplies would be most discouraging to tho policy of 'increased production' New Zealand has-so successfully sponsored. The results of it have been most satisfactory, and the.prospects of further development are very promising. _It would bo most discouraging if anything were done which would interfere with the prosecution of this policy."

AGAINST RESTRICTION.

AUCKLAND TRADER'S VIEWS

Despite the dismal outlook depicted in latest cables opinion in dairy circles in Auckland seems to be opposed to any restriction of Dominion exports. "To do so," said one prominent trader, "would be to set up a bad and dangerous precedent. Moreover, it would play into the hands of our competitors, who would suffer less relatively than we would.

'"It must not be forgotten," he added, "that many of the' Tooley Street merchants are financially interested in the business with our foreign competitors, and it is. possible to attach too much importance to their advice." He declared it would, be far better for the position to settle itself by the usual methods of economic warfare, even if the price went still lower. There was no great weight of stocks on the London market to justify a paralysis of trade, but if New Zealand was to restrict its exports to Britain it should be loaded up with produce that it could not sell at any price.

The following private advices have been received: —

New Zealand Producers' Co-operative Marketing Association. —From London office: Butter, depressed and declining; cheese, slow. Butter: New Zealand, 69/ to 70/; Danish, 90/ to 92/. Cheese: White, 40/ to 41/; coloured, 48/.

Messrs. Joseph Nathan and Company. —From Trengrouse and Nathan, Tooley Street: Butter, 69/ to 70/; weak. Cheese: White, 40/; coloured, 48/. Market steadier.