EMPIRE PRODUCTS

Press, Volume LXVIII, Issue 20587, 1 July 1932, Page 16

EMPIRE PRODUCTS

NEW RECORDS IN BRITAIN. DEMAND FOR NEW ZEALAND BUTTER. (UNITES PBISS ASSOCIATION —BX KLECTBIC TELEGRAPH —COPYRIGHT.) (Received July Ist, 1.27 a.m.) LONDON, June 30. The annual report of the Empire Marketing Board says that in spite of the people's diminishing buying power new records have been established in the quantities of imports of 25 Empire products, including Australian wheat, flour, pork, butter, eggs, and New Zealand lamb and butter. The "Buy British" campaign has definitely increased the people's determination to buy British goods, while the policy of canvassing retailers has been highly successful. Six months' personal calls in the principal Lancashire towns resulted in the proportion of sellers of Empire butter rising from 56 per cent, to 73 per cent. The consumption of New Zealand butter in certain districts has doubled in the last two years. PRICE LEVEL CONTROL. PROVINCE OF CENTRAL BANKS ? Controversy continues as to whether it is the province of a central bank to attempt to control the price level as well as credit issues, observes the "Sydney Morning Herald." The control of credit issues has for long been regarded as a province of the central bank of each country, though there have often been occasions when the money market has got out of band. The control of the price level through the operations of the central bank has been advocated by advanced economists for ten years past. In the United States banking opinion is coming round to the view that control of the price level is possible, and should be undertaken. An example is in a recent issue of the monthly review of the National City Bank of New York. Having explained the methods which, under the Glass-Steagall Act, the Central Reserve banks of the United States have adopted for expanding credit, putting new funds into the market available for the member banks, the review points out that European misapprehensions regarding the matter arising through fear that inflationary measures were afoot have been quietened, and financial circles in Europe now generally approve of the measures and of the Federal Reserve policy, holding them soundly conceived and helpful to the world situation. "The inauguration of this policy on the scale now contemplated," the review of the National City Bank of New York proceeds, "may result in the development of world co-operation by central banks for the more effective control of credit and prices. Obviously the banking system of a single country cannot exercise the control over world prices that might be exorcised by the banking systems of all countries or even the banking systems of a group including the more important countries, acting together. The prices in different markets of commodities entering into international trade are interlocked, and while they react upon each other they must move promptly together, or the lagging ones will be a drag upon the others. Moreover, there is danger that a country leading an advance may lose trade by it. But all countries have a common interest in the stability both of credit and prices. "Able economists have maintained for years that the central banks of the world possessed the requisite organisation and power, acting in co-opera-tion, to stabilise the state of credit ' and the general price level to such an extent as to prevent the wide fluctuations which result in panic and disorder. Practical bankers have admitted the theoretical soundness of the principles involved, but feared popular opposition to anything that looked like international control of money and credit. Such co-operation, of course, would not attempt to control particular prices, and probably would not attempt to do more with general price movements than prevent the wide swings that result from excessive inflation -and deflation of credit. "It is possible that the action now being attempted may enlist similar action in other countries and demonstrate the value of such continuous cooperation. The markets of the United States, by reason of this country's position as a source of supply of many commodities, exercise an important influ'ence upon all world markets, but the effort to revive business and raise the price level should have support everywhere. The Reserve System is giving the le^id."

DAIRY PRODUCE. LONDON QUOTATIONS. The New Zealand. Loan and Mercantile Agency Company, Ltd., have received the following advice from their London office, under date June '29tli:— Butter —98s. Cheese —57s to 58s. .Market is firm. A. H. Turnbull and Company, Ltd., have been advised by W. "Weddel and Company, Ltd., London, under date June 29th:— Butter —Danish, 101 to 102s per cwt; New Zealand finest, 97s to 995; "Kangaroo," 96s to 98s. Market firm. Cheese —New Zealand, white and coloured, 57s to 58s. Market firm. HAWARDEN MARKET. The entry of sheep at the Hawarden market yesterday was a small one, totalling 453. Only about half were sold, the bidding failing to reach vendors' values. The sales were —81 fat lambs at 9s 6d, 9 fat ewes at 9s Id and 5 at 12s, 60 'mixed sex lambs at 4s sd, and 78 ewes in lamb at 9s 6d. Fifteen head of cattle were yarded, all but one cow being sold. Nine spring calving cows made from 25s to £3 12s 6d, 2 heifers 32s 6d, and S heifer calves 15s. Weaner pigs sold at 8s and 9s, and small stores at 14s 6d. A hack changed hands at £5 10s.