PRODUCE AND MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXIII, Issue 115, 18 May 1927, Page 13

PRODUCE AND MARKET REPORTS FROM DAY TO DAY

CONTROL IN TRADE

WHAT OF THE, JFUTUKE ?

WORLD-WIDE MOVEMENT

"livening Post," ISth Hay. Notwithstanding the check .to control of dairy produce exports from this Dominion when price-fixing was. dropped, there is a world-wide movement for the control of trade in certain primary productß as is done in the marketing of many manufactured articles.- So far as the consumer is concerned, control o£ these is of less importance than coutrol of vitally necessary foodstuffs. But, the cablegrams a few days ago showed how far-reaching was the movement for primary producers to combine and control. their products. At Kansas City an international conference representative of wheat growers in Canada, thu United States, Russia, and Australia ■ in secret sessions of the executive adopted resolutions which are but preliminaries to creation, pf a .gigantic and world-wide- control of wheat production, disposal, and price. The object of this conference was not t(> lower the price of wheat, and consequently flour and bread to the consumer, but (to quote the Russian (soviet delegate to the Kansas conference, M. Ohsol, ot "getting-more money for our wheat. That, after all, is the chief object of all controls, pools, trusts, or combinations. "JI01& money" can be obtained by means of. -cither reduced cost of production, and distribution: or increased prices of the commodity produced, but both of them'iHiiy.be, and'Avherever practicable, generally are adopted. If the commodity happens to be something the consumer can really manage to do-without, and sales fall off, the producer .will generally take prompt steps to arrest the fall, either by lowering his price or giving better service. But it is very different in the matter ot food. • This a constantly hungry, world, cannot-do without and survive. If food Incomes too dear in the last resort it must procure it for itself if it is to live. ■ This, "if practicable, would mean dropping services directly" or indirectly, rendered to producers. The other alternative would be to' demand payment of wanes or returns on a scale; commensurate with the cost-of necessary, food. That, or starve.' ■. - ■.....-' „...'.

air.- L. F. Wise, C.8., a writer on Economics, who was' Secretary, of the Ministry for Food,, hits ' recently drawn attention _ to what he; describes' as "the most significant development- in international commerce since the.war, the centralisation of sale of agricultural commodities under co-operative or Governmental auspices." He specially points,to. the growth of that movement in the British Dominions since t'i« war, and mentions the New Zealand Meat, Dairy, Fruit, 1 and Honey Control Hoards, and remarks:'"lt is idle to pretend that ..there is no danger that these organisations may be. tempted to exploit consumers.-" .Better . orgnisation- and the cutting out of intermediary profits he admits are desirable,- aud. has something to say ou the advantages of bulk .buying and Belling, but he foresees the time, and that not iar distant, when the whole world trade in essential foodstuffs' will be in the hands of ii small number 'of enormously powerful bodies-, ■who will be- faced by equally well-organised consumers in the chief industrial countries."; „- .. ■

Chaos of competitive markets will give place to careful organisation of supplies and their- distribution. :-•

-But-it is quite evident to. this authority that function's of .such importance will be of vital interest to the world as a whole —to every country, to every industry. The League of Nations cannot afford to ignore this world development, 1 for it is difficult to see in its whether it is for peace .or -war.:.. ■ .'-. ■.