AFTERMATH OF DAIRY CONTROL.

Evening Post, Volume CVIII, Issue 82, 3 October 1929, Page 12

AFTERMATH OF DAIRY CONTROL.

JMr..H.'E. Paccy, -managing- director Glaxo Manufacturing Co. (N.Z.), Ltd., who has just, returned from London, deplores the sequel to price-fixing by the New-Zealand Dairy Board. In an interview on "Tooley Street" business, Mr. Pace? remarked: "Regular day-to-day buying on Tooley Street is now a thing of. the past. A big buying combination is nowoperating and purchasing principally when ,the market is favourable, This development is in general line with the big business-in Great. Britain, but it was represented, in Tooley Stroet that, as applying to butter and,cheese, it has been precipitated by our control efforts. Many wholesalers, by the foregoing conditions, have been forced to adopt a special policy. A'hopeful feature, however, is that it has been a combination of importers and wholesalers with an avowed policy of selling to'free stores at the prices ruling' from day to day. This'organisation is in regular ■ contact with some 15,000 'free' stores, and thus_ will bo able to place considerable quantities of butter and cheese at these stores which are nioiitly situated' in the south of England, where New Zealand products are best known. Important benefits to the Dominion producers are therefore probable in that regular selling at emrent rates averages better prices for tfee tetsmg .

THE GOLD PEOBLEM

INTERNATIONAL CURRENCY

Mr. John V. Darling, one of the directors of the Midland Bank, and a former colleague of Lord Milner, has proposed establishment of' an international system of currency. He was the originator of the scheme of British Empire notes, and he' visited Canada,.Australia, and New Zealand in connection with that scheme, and personally explained to the heads of Governments and-bankers in the Dominions visited. He now suggests establishment of an International Bank, which should be the fountain head of credit not only for the participating countries, but ultimately, perhaps; for the world. It should provide for the creation of an International Currency Unit—the gold equivalent of which should be 113 grains of fine gold llie International Bank would keep accounts for central banks only, and these might be opened by a deposit of gold. A transfer in the ledger of the International Bank would be tantamount to a transfer ot currency from one country to another As gold js in short supply, an issue conjointly of International bills by the participating countries in an agreed proportion with a pro rata gold reserve obligation would serve as currency cover. Thus the functions of the International Bank would consist only of holding the balances I of the central banks and discounting International bills for them.