THE PRICE OF FLOUR.

Lyttelton Times, Volume XCVI, Issue 14386, 31 May 1907, Page 7

THE PRICE OF FLOUR.

YET ANOTHER RISE. MILLERS QUOTE £ll PER TONv WHEAT IS DEAR AND SCARCE. The rise of 10s in the price of flom announced yesterday, mailing a total increase of 30a per ton since May 18s came as a shock to consumers, but it did not mark the end of their troubles. Last night the Now Zealand Flourmillers' Co-operative Association announced a further increase of £1 pet ton, making the price of flour to-aaj £ll per ton, as against £8 10s on May 13. In other words the price of flour has increased by nearly 30 per cent within three weeks. This last increase makes certain a further increase in the price of bread, which now stands nominally at 6Jd for the four pound loaf. This price was fixed when flour was at £9 10s per ton, and the probabilities are that bread will rise at once to 7}d per four pound loaf. The following table shows how the, rises in the price of flour have taken place:— Mtay.

The rise is again attributed to the rise in the prioo of wheat. On Wednesday wheat was quoted at 4s 6cT f.0.b., and yesterday 5s f.o.b. is stated to have been offered for a large liie. As.far as the layman can ascertain, this price justifies the present prioe of flour, so that the cause of the trouble has to be sought in the conditions that have given the upward impetus to the prioa of wheat. These conditions have already been explained by the millers. There have been unusual development* in the wheat markets all over the world, and the price has everywhere gone up. New Zealand does not export wheat now in any considerablequantities, but the price here •is still regulated by the price abroad, and the New Zealand market has moved in sympathy with the markets of Australia, Great Britain and th© United States. Whether that upward movement is justified in New Zealand is a question upon which the existing difference of opinion is likely to be accentuated by the further rise.

The sudden rises in the price of th» staple article of food has had the r«suit of making the general public realise that there is a duty on flour and is likely to strengthen the demand that the duty should be removed. "Tho present system," said a citizen yesterday, "means that we in NewZealand are paying for our flour the high Australian, price, caused by the shortage in the Commonwealth, plus the duty, plus the freight. That is what it comes to, .however tho millers may explain the position." It is understood that the bakers have not yet arrived at any definite decision in regard to tho further increase in the price of bread, but the increase ia certain to come. The addition to the cost of living will fall heavily on the consumers, especially those of the poorer class. v

The rorusumer is, of course, indignant, and it is evident, from conversation at the street corners and in the tramcars that the average man thinks that someone is fleecing him. "The figures look all right, and I dare say the price of flour corresponds with the price of wheat," said one man. speaking to a reporter, " but who has put up the price of wheat P The millers have don© it. We have plenty of wheat in Nevr Zealand for our own. needs, but,, because there has been speculation ia America and a shortage in Australia, our prices are raised. Remember, that New Zealand has practically ceased to export wheat. The millers are taking advantage of the duty on imported flour, and are taking the very last penny that they can without raising th« prices to the level at which importation becomes possible. In fact, tha millers, as has been said again. . and again, are a trust, and the consumer* -will obtain relief only when the State interferes, as it did in connection witk' the coal trade." THE WHEAT MARKET. EXCITEMENT IN DUNEDIN". [Pas Paxss Association.] DUNEDIN, May 30. This morning, in the absence of further news from London, the local wheat market was somewhat calmer in, tone, but prices were as firm as ever. -An offer of 4s 6d f.0.b., sacks in, from aji Auckland buyer, was refused by » Dunedih holder for a considerable line of wheat, and inquiries by wire in all markets in North Otago and Canterbury elicited the fact that very few holders were willing to put a price on' their grain, preferring to await marfcet' developments. For a few lots jg» offer 4s 6d was the price asked, asp l sales are reported at this figure. Thk afternoon, however, excitement recommenced upon the receipt of instructions from Chnstchurck, the headquarters of the New Zealand Flour-millers' Association, to make a further advance of £1 per ton in the price of flour, this representing a total advance of £2 10s per ton within a little over a fortnight. On Tuesday May 14 flour was advanced from £8 15s to £9 5s per ton. On. the following Thursday (May 16) another 10s rise was established, making the price £9 15s. Yesterday yet another 10s per ton wa3 clapped on the price, raising it to £lO ss. and with to-day's £1 rise added the price' stands at £ll ss. The equivalent! advance in wheat for-'same period is Is per bushel (from 3s 6d on trucks to 4« 6d). Local millers were taken by surprise by to-dlay's advance in flour, butl they point out that it amounts to a measure of self "defence. Already millers who do not hold wheat are declining orders. The local branch of the Association has received official notification from at least two _ flourmilling firms of their intention to close down, for the present, and it is fully expected that several other mills will follow suit during the next few days. Of course this latest rise in flour must carry with it another rise in bread, and in all probability bakers will fix the price at 7d the 41b loaf. The Millers' Association has also advanced the price of pollard, which now stands at £5 10s per ton, both for local and shipping orders, an advance of 10s, possibly out of sympathy with the rise: in wheat. There has also been a move in oat®. Every line of oats offering on this market was packed up yesterday by a speculator at a slight advance on current quotations, and to-day scarcely any oats are to be purchased. To-day's quotation on trucks at Gore is firm at 2s 8d per bushel, an advance of fully 2d per bushel on last week's rates. [From Otto Correspondent.] DUNEDIN, May 30. Flour went up another 20s per ton to-day, making the selling price £ll ss. In consequence of the sudden and serious advances of the past fortnight, one of the Dunedin millers has given notice to the New Zealand Millers' Association that he will close down for a period of three months, and it is understood that it will not be long before mills at Lawrence, Palmerston and Waikouaiti will follow the example of the Dunedin firm.

13. 14. 16. 29. 30. Saoks lOOib bags 501b bag's 251b bags . 8 10 . 9 0 . 9 5 . 9 10 9 0 9 10 9 15 10 0 9 10 10 0 10 5 10 10 10 0 10 10 10 15 11 0 11 10 11 16 12 0