THE RECENT DROP.

Hawera & Normanby Star, Volume XLI, Issue XLI, 11 May 1921, Page 4

THE RECENT DROP.

LEADING ALTHORITY INTERVIEWED. ] A leading authority who was inter--I viewed in Wellington in reference to. ; the cabled report of a drop in thei price of butter, told a Times represent-- | ative that the reduction in the retail.:; | price on the English market did not by any means indicate that the NewZealand producer was to be adverselyaffected. "The cable," he says, "simply means... that, the British Government" is toomuch loaded with butter and has de- - cided to clear some of its stock. The decision does not affect our producersat the present tinle. They have sold ~ their output and get their 2s (3d, so— ' the British Government alone will be- - affected so far as the matter goes now.'*/ | For the next several months, he addi ed, the New Zealand producers would ! have all they, could do to supply tlio.----j local market. Another aspect was that as the reduction in price would encourage thtf' ■ purchase of butter, it would thus benefit the New Zealand producers, mas- - much as the stores would be more. • quickly cleared if the sale increased, and the sooner the stores are cleared .* out the sooner sthere will be a freshi. . field for our coming season's output. In addition to the crowded stores a. circumstance which had contributed to • the decision to reduce the price o£ ' butter at Home was the weakening in1 * the purchasing ipower of" the people, [ this because of the industrial trouble. "We just take it," he concluded, "as . an indication of the Government's de- - cision to reduce stocks. You must remember that here, at Home, on the • water, and in Australia the British' Government has 50,000 boxes of butter.'> ,

As to cheese, he said the market . still keeping firm; the; people must . have their bread and cheese, whatever happened.