COST OF LIVING.

Hawera & Normanby Star, Volume XLII, Issue XLII, 16 October 1922, Page 6

COST OF LIVING.

"SIMPLE LIFE" A REMEDY

CUMULATIVE SERVICE

RESPONSIBLE

DIFFERENCE BETWEEN PRODUCER AND CONSUMER.

Until people are ready cto go back to ■ the simple life, : v there cannot be any j material reduction in the expenses S created between producer and consumer in the cost of foodstuffs. Some of the waste might be eliminated if municipalities would relocate their mar- 1 kets so that wholesale and retail deal- \ ers would not have to run hither and yon, through congested street traffic, with their trucks to gather up the supplies needed for daily consumption, says "G.T.0." in the Christian Science Monitor. The farmers could help a little by paying more attention to tho sorting and grading of the stuff they ship to primary markets. But, after all, the possibilities for savings in the distribution of foodstuffs from the farm J to the consumer are"very harrow under the present system. The fact remains that if the consuming public demands service it must pay for it. Such is the conclusion reached by the American Joint Commission of Agricultural Enquiry, composed of members of the Senate and the House. It is a summing- up of the Tacts deduoed by an exhaustive enquiry into the question of why the A,merican farmer gets such a small percentage of the consumer's dollar. It is the accumulation oi services between the producer and the consumer that accounts for the great spread. Each of these services must be paid for and each is demanded by tne public.

"There is hardly a commodity in daily use that does not reflect the combined services of a great many people," said the report of the commission. "One need go no further than to consider the paper and twine with 'which purchases are wrapped to see the reflected activities of the cotton grower, hauling his product to market to be ginned, transported, and converted into cotton string, to be distributed through dealers and transported to its final user."

The Commission holds that Government can do very little about the matter. The responsibility rests upon the entire people to make adjustments of customs and habit which will permit the development and establishment of a system of economic " distribution which will result in a more equitable relationship between what the producers receive and what the consumers pay. Elaborate charts are incorporated m the report, showing how intricate the system of distribution hag become, reflecting activities in widely separated sections of the country . and much wasted effort.

The Commission take* th^ American ' farmer to "tasß. He has been too much" concerned with the problems of production". "He "is thlrfking in terms of individual production rather than scrvtcv, marketing ami distribution, the report says'. The Commission contends that, until such time as the agricultural producer considers production in relatiun to the consumers' demand and satisfaction, he is unlikely to materially improve his condition.

The Commission points to the scant success the Post Office Department has had' in bringing the consumer and producer closer- together through the parcel post. Apparently the consumer has been unwilling to anticipate requirements sufficiently in advance to assure the producer a continuous market. The Commission finds that the producer is also at- fault because he has not shown sufficient willingness to assume reponsibilities for quality of product and assurance of service to command the consumer's confidence. Some of the disabilities to direct trading between farmers and consumers could be "removed by co-operation among the farmers, the Commission holds. On the other hand, there are certain risks which neither producer nor consumer is in a position to accept. These are now assumed by the wholesalers, jobbers, and retailers, and are reflected in the prices- which consumers are obliged to pay. The bulk of agricultural products coming into terminal markets are raw material, which must be converted into finished products of a great variety to satisfy the whims of modern society. With a view to maintaining a great volume of production, manufacturers have urged wholesalers and retailers to buy iv the largest quantities, with little regard for the consuming capacities of the communities served by them. This has led to competitive practices of distribution which have created a burden from which, according to the Commission, the manufacturers would be glad to be relieved. There is no single point of attack to this problem that the Commission has discovered. 'The elements which compose the spread must De attacked at every point in the chain of producing, manufacturing and distribution. ' 'Legislative panaceas cannot be effective in ! improving a situation brought about by the interplay of so many varied and complex factors," said the report. The Commission does jiot often attempt to make specific recommendations. Its conclusions merely point the way to a , better economic system. It does declare that the several Gov- ■ srnments encourage and promote co--1 operative enterprises. There is likewise a recommendation to Congress to speedily re-enact the law regulating the trading in grain futures which recently was held to be unconstitutional. In the main, however, the conclusions of the Commission resolve themselves into the following expression: "Permanent solutions of the problems of distribution must come as a result of higher standards of knowledge and ability on the part of producers, manufacturers, transporters, stores and distributors, and a more enlightened recognition of their obligation to the public. Governmental agencies should co-operate with producers, trade and labour organisations, and with each other to secure more accurate statistical data . . . and to promote standardisation of product and service. Consumers' can co-operate to reduce the cost of distribution by assuming a greater responsibility in securing the commodities they require instead of depending upon retailers to display a great variety of goods with superlative convenience and spacious display rooms with extravagant furnishings, fixtures, and facilities. Such environment is created in response to the consumer's demand, and must be paid for out of the purchase price of the merchandise the consumers buy.