COST OF LIVING

Marlborough Express, Volume L, Issue 153, 30 June 1916, Page 3

COST OF LIVING

] COMMISSION'S INQUIRIES

( REPORT .TO PARLIAMENT. 1 INCREASED PRICES AND THEIR

CAUSES

™ J\T) T!RiriT> TVHEAj., FLOUR., AAD BRo^AD

The cost cf living problem is dealt S with to *a partial extent in the first I interim report of the ..Board of Trade i Commission to inquire into the prices iof wheat, Iran, pollard, flour, and ] bread for two years before the ouirj break of the war. the fluctuations of i prices subsequently, and the reason i for fluctuations and present prices. ■ The report, which deals with Canterj bury, West Coast of the South TsI land, and Nelson, was laid on the ! table in the House of Representatives I on Tuesday by the lit. Hon. W. F. i Massey (Prime Minister). It states i that on 26fch March last the appointled members of the Board of. Trade j were directed to institute an'inquiry I into pre-war and post-war prices of 1 wheat, flour, and bread, and after consultation, they formulated the following questions, defining the scope the inquiry should take:— (a) What were the prices of wheat, bran, pollard, flour, and bread_ for two years prior to the outbreak of tho I war? (b) What have been the fluctuations of prices since the outbreak of war? (c) What were tho reasons for the fluctuations? (d) What are tho present prices, and are these, reasonable? MANY WITNESSES HEARD. 1 The Commission held ton sittings J In addition to obtaining information j from other sources it heard evidence from thirty more witnesses on oath, including l-eprcsentative business men, millers, merchants, master bakers, and other experts. While within the limits of the time at its disposal tiie Commission took account of prices generally throughout tho ■country and abroad, it concentrated its attention mainly on Canterbury, the West Coast, and Southland. In other parts of the South Island and in the whole of the "North Island, apart from additional charges duo to railway rates and steamer freight*,

prices (it found) wore governed to a very large extent by conditions obtaining in Canterbury, so that it was unnecessary for the purpoi<*s of the interim inquiry to deal with them fioparately. "Speaking generally," says t.li© report, '•'there is no doubt thiil the causes which operate to fix the pi ices of the commodities with which we are dealing in Canterbury are also those mainly responsible for the prices in the rest or" New Zealand. There may, of course, bo local reasons for abnormal differences, but it would bo impossible for the Commission to consider in detail sporadic variations without unduly prolonging their inquiry." MARKED FLUCTUATIONS. The report states tha« although tho price of flour naturally followed the price of wheat, the price of bran and pollard were independent of the price of wheat. During 1912, and until tli© end of March, 1913, flour remained steady at £S 10s a ton; in April, 1915, it rose to £9, aaid remained at this piice until February, 1914, when there was a further rise to £10. In June itiicl July the price mounted rapidly to £12, and m August, prior to the war, it was £12 10s. Immediately war broko out. there was a further rise to £13. During the month of September the rise receded to £11 15s, followed by an immediate rise to £13, at which figure, it remained until January, 1915, when it rose to £15 10s, in February to £16 10s, and in March to £17 10s, and remained at this level to July, when the price rapidly receded to £15, and continued falling during August and September, when ittouched £32 10s. In November :i furthor drop to £11 10s took place, followed in Decoaiber by a recovery to £13 10s, at which price it remained until March of the present year, when, it asain dropped to £13 in Ohristchurch and £32 10s f.o.b. Timaru and Lyttelton.

BREAD AND OVER-THE-COUN-

TER SALES

Continuing, the report points out that tho prices of pollard and bran exhibited corresponding fluct'iatioj'.s, and then deals with tho cost of bread It states that an examination of tho delivery costs shews that a charge of lid is not unreasonable, and could be considerably reduced if it wcro made- from one distributing centre. "We are of the opinion, however, that over-the-counter sales should' be encouraged," the report proceeds, "and that a., relative over-the-coun-ter price should be insisted upon by les»al enactment. When people aro willing to call for their bread and pay cash they should not be penalised by Laving to pay the same amount as if it were delivered at their door. As a jrood deal of discussion is taking placo on the disparity in price between, say, the imuutity of wheat sufficient to make a ton of flour and the price vhe ultimate consumer pays for the manufactured article, wo nave thought it advisably to sot out the facts as accurately as they* could bo obtained in the evidence before us. Wo tako it as established that forty-six bushels of good milling wheat will produce a ton of flour, but many millers, in giving evidence, allow "forty-oight bushels to the ton. We further take it as established that 670 four-pound loaves can be produced from a ton of floxir, weighing 20001b. We believe that 670 loaves is & fair average. Prices obtainable by farmers for milling Wheat at the time of our enquiry ranged from 4s 4d to 4s od, according^ to grade, and would average 4s 7d abushel. The farmer would therefore, receive for his Wheat on tho basis we have assumed forty-six times 4s 7d —i.e., £10 10s lOd. Railage to mill and commission averaged 3d p<v bushel, equalling lls 6d per ton. The miller therefore paid for his wheat at the mill £11 2s M, .plus the cost of sacks." NEED FOR VIGILANCE. After dealing with other incidentals the Commission sums up as follows:—"The impression left upon our minds by the evidence- and information before us is that the distribution of the food supplies of the Dominion ca-nnot.■ safely be left in time of crisis to the working of an unregulated systeni of supply and demand; and we con&ider that the situation as regards prices of flour and by-products of wheat should be closely and .continuously watched with the aid of returhs" that should be periodically fiirnished by the Goi-ornment- Rtatistkv ian to the Board of Trade W© therefore recommend that millers and recognised dealers in grain should be registered with the Board of Trade, and should furnish .fronv week to week quantities of wheat purchased and the prices paid. Appropriate penalties should be provided for emitting to furnish, or furnishing false returns. It would be the duty of the- Bo&rd, in conjunction with the Government Statistician, to collect the information thus supplied, and weekly to publish an official quotation of the actual market prices. . . We further recommend that thethreshing mill proprietors be required to register with the Board of Trade and send, weekly returns of quantities of grain threshed to the Government Statistician. Appropriate penalties should be provided fcr failure to comply.

SUGGESTED TABLE OF PRICES

"We have considered the question whether the fixation of maximum prices by legal enactment for wheat, flour, and bread, or by tho method of 'recommended- prices,'* which was adopted in England shortly after the outbreak of the war, would be- best suited to the conditions prevalent in New Zealand. There arc- sufficient difficulties to be encountered under either system, but on tho whole we prefer tho latter method, and suggest the following: table should b-? the recommended prices, «übjovt >o alteration by the Board of Trade, as may he recommended by the changing' conditions from time to time:— Wheat Bread (delivered at Flour (cash, over at mill). (f.o.b.> counter). At. 3s 9d ... £9 10 6d 3s fid to 4s ... -HO td 4s to 4s 3d ... £10 10 Pd 4s 3d to 4s 6d ... £11 ~> 6*<l 4s <?d to 4s 9d ... £11 lf» 6*<l 4s 9d to 5s ... £12 5 6&tl 5s to 5s 3d ... £13 <d

"As pointed out, the- majority^ ot master bakers- discourage over-the-counter sales of bread by charging the customer who purchases Ins requirements in the shop the- same price as for delivery. We recommend that a relative over-the-counter price be made compulsory, and that it bo in accordance with the above table, and at least H<l less than the- cost of delivery. This provision should apply to the four main centres and the secondary towns."