HIGHER PRICES

Evening Post, Volume CVII, Issue 28, 1 August 1929, Page 19

HIGHER PRICES

POTATOES AND FLOUE AUSTRALIAN OUTLOOK (From "The Post's" Representative.) SYDNEY, 25th July. During the past week in Australia | two necessities have made sensational advances in" price, and the outlook is far from pleasing for those who already find difficulty in making both ends meet, for it is clear that the limit has not been reached. ,hF °llo uVillg tho rising wlleat market throughout tho world, the price of flour in New South Wales jumped 50s in four n S- v " now stands at £14 a ton Drought in the world's principal wheatgrowing areas has been mainly respon sidle tor this increase in the price of Uo"r- Wheat prices advanced Is 6d a bushel in three weeks—in sympathy with the world-wide tendency. And now the wheat areas of the State arc crying out for rain themselves. The outlook in the State, in fact, is so seri ous that wheat prices here have ad vanced beyond world parity. On the strength of the drought farmers have sold very little of the remainder of last season s crop, with the result that prices in Sydney are now 7d or 8d above export parity. It is yea rs since a similar situation existed. Now, of course, the bakers are talking about increasing the price of bread, buf Bh, oul<3 they do so there will prob ably be a wild outcry, especially by the Housewives' Association, which in Melbourne and Sydney is becoming a very active organisation. The Housewives have already been aroused by the tremendous advance in the price of potatoes, and the leaders say that it is about time there was an organisation working in the interests of tho public generally for the purpose of stopping exploitation in the sale' of foodstuffs. Ino association says that there is no justification for an increase, and it quotes the figures given at earlier inquiries to show that master bakera have been making more than a fair return out of the flour they have been turning into bread. The bakers say that a rise will be necessary, but it is significant that they have held their nand since tho Housewives' declaration which was supported by a section ,at least of the Press. In Melbourne the association took up the question of bread prices, and went beyond the declaration stage. It actually sold bread at a Id a loaf cheaper than the bakers but the man who supplied it at the reduced m-ice was threatened by "some-! one that supplies of flour would be cut off unless he discontinued the contract. However, the association soon got another baker to make bread at a reduced price, and the arrangement still holds. In Sydney tho association has instituted a boycott of potatoes, and'when asked yesterday whether the boycott was effective the president (Miss Portia Geach) said: "We will bft them hands down. We had, a two weeks' boycott about two years ago when potato prices went up to £20 a ton— the' price they are to-day—and the merchants lost about £20000 We have had better results in one week this time. If the housewives stand behind us—and I think they will to a woman—we must succeed quickly." It has been announced that the Labour I arty will stand behind tho association in any reasonable plan to keep the price of potatoes within bounds. The Housewives want to know why it is ftcw Zealand potatoes are not admitted to Australia when local supplies are ao short. ■ Nobody seems to be able to answer this.

V-hy 13 it that the Sydney house-' lioiclpr must pay the famine price of 4a a lb tor all potatoes bought over the counter? In normal years Sydney supplies are drawn mainly froni Tasmania, with a certain quantity from Victoria. This year Tasmanian crop? have suffered from a variety of causes bast year supplies wero large and prices 111 Sydney wero - low in consequence. I Ins influenced many Tasmanian farmers to plant less land. For this rea Ron, even if crops had been favourable' supplies would have been Irs*, than last year. Then the floods caused considerable damage to crops as a whole Anri so Sydney had to call on Victoria, and round that the position Hiere was not much bettor. It is likely that there will bo a shortago of potatoes for the noxr threo months, and some merchants

have been bold enough to predict that I J™ 00 °f this commodity will rise to £o0 a ton. But they did not take into account the possible effect of the cant™' fi* i3're Bar^d as significant that there has not been any change in price for at least a week, it is also significant that there wae a carry over at the markets last week-end of several thousand bags