WELLINGTON TOPICS

Hokitika Guardian, 15 December 1925, Page 4

WELLINGTON TOPICS

THE SLUMP IN PUTTER. DIVERSE VIEWS. (Special to “ Guardian.”) WELLINGTON, December 8. .Mi* William Grounds, the Chairman the Dairy Control Hoard, and -Mr William Goodfellow. a very active and enterprising member ol that body, figure prominently in the local papers this morning. Mr Grounds in the couise ol an interview with a representative of llio "New Zealand Times” blames the strike for the “slump” in butter and regards the poslion as an extremely crave one. “it is very difficult to do anything on the spur of the moment to influence market prices,” said the Chairman of the Hoard when asked if he could offer any suggestions for the relief of the situation. “ Anything in that direction is the result of carefully built up organisation, lo be trank, wo had thought that we had. within the limits of our position of partial control, made such arrangements as would ensure a reasonable return to the producer, but this strike has upset all that. No. I cannot say how long the present stale ol allairs will last, nor do I think we can do uny-Lliing to remedy it now.” Having accepted the inevitable in this philosophic fashion, M.r Grounds proceeded to enlarge upon the advantages that would accrue to the producers and to the community at large when the Hoard enjoyed “absolute control ” with authority to put the merchants and the speculators in their proper place and to lix prices on the London market. HOW IT IS TO HE DONE.

Mr Grounds dwelt upon this aspect of the question with evident .satisfaction. “ The Hoard,” he told the interviewer, “ will decide, through representatives in London what quantity of butter to place oil the market month by month. This does not mean that an equal number of tons will be marketed each month. While the European summer season is in progress, a lesser quantity will bo issued, and in the English winter a greater. Stores will he secured in London and supplies in excess of requirements will he held there until required. Wo hope in this way to maintain an even price for New Zealand produce on flic English market. just as the Danes, by a similar police, do. Australia lias also agreed to control, and has its organisation already' working in London. By working in with them we will control such a

volume of dairy produce, as to be able, to a. very large extent at least, to prevent these sudden fluctuations which are so disastrous.’' Mr Goodfellow's views regarding the situation have been distributed hy the Press Association and there is no need to repeat them here further than to mention that the chairman's optimistic colleague thinks the “slump” might lie arrested b v the New Zealand factories i aiding to their London agents fixing a minimum selling price. Hut Mr Goodl'ellow, like his chief, holds that the only infallible safeguard against “ slumps ” is absolute control. THE OTHER SI Dr.. The chairman of the Eree Marketing League when asked this evening it lie had anything to say in regard to the statements made hy Mr Grounds and Mr Good fellow said he had no W ish to embark upon a. < ontroversy with llte.se gentlemen ecu crning the merits and demerits of absolute control, 'live reiteration of mere assertions eoltld serve no useful purpose. Hut some of the ‘filets' put forward by .Mr Goodl'ellow in his latest talk with the newspapers were so llagrautly inaccurate it was astounding they ever should have got into print. "We hope in this way.” Mr Grounds was reported as saying when discussing the Hoard's proposal to hold slocks in London when supplies were in excess of requirements, "to maintain an even price for New Zealand produce on the English market, jest as the Dam’s did hv a similar policy do.” As a matter of fact, the chairman of the Eree Marketing League went on to say. there were two gross misstatements embodied in this one sentence. It was imp lied that the Danes held butter in store in London to In' released only when the market suited them, and that by these means they secured an "even price.” It had been explained over and over again, the chairman continued, that the Danes sell their butter week by week to various distributors and enjoy just as much freedom in the disposal ol their produce as the New Zealand producers do at the present time, with no threat of “absolute control” hanging me:' tlmir heads. " AN EVEN PRICE.” As for the assertion that the Danes had discovered a. means of maintaining "an even price” tor their butter on the London market all the year round, if was only necessary, lids authority went on to say, to look at Weddel's chart -howiiig the weekly prices of butler in London lor last year, from July I, I til'l, to .1 line I'd, 1125. to realise lo ii hat lengths ingenuity may go in ihe way jj' misippre.seiitaliun. On July I. according to this chart, which was accepted as being authoritative throughout lti o inerehantile world. Danish butter was at 201 s per ewl ; on August lb, at 2205; on September 2l>, at 2;!Ss ; on October IT, at 2bt)s; on November I I. at 2205; on December 15), at 2-l(is, on January 20. at 19(>x; on Kohl nary 2T. aL 200 s; on March 27, at 21.85; mi April 21, at 18(Js ; on May 20, at 18(.)s and oil Jun<‘ 10. at 201 s. There certainly was not much evenness about those figures, the range being from 200 s in October to 180 s in .May and then back to 201 sin .Tune. The truth was that the Danes with all their hardgained exnei'ietiee, with all their great individual and national effort, and with all their superb efficiency had found no means of overcoming the economic law of supply and demand. Mr Goodtellow was talking of telegraphing to London ro hold up the market to 180 s with the certainty that such a message would lather harm than help the producers. while Mr Grounds in an excess of candour admitted he was not optimistic enough to look for an early recovery. Roth gentlemen should profit from the lesson flint was being taught them. .Such were the views of an upholder of free marketing.