DOMINION PRODUCE.

Manawatu Standard, Volume XLIII, Issue 1714, 3 January 1920, Page 7

DOMINION PRODUCE.

ViijsnVthe ; c6mmandeer LMDS !• .;,WHAT;:WILD EVENTUATE?

In, a circular issued to. factories, thp National .Dairy -Association ; -says, inter alia. 1 : —, . .-■■.. -■- , ; . r.' •- '■,.■'■•

: Probably _ the question which more than any: other is: exercising l -the' dairy company directors, and oflicials is.: ', "What is going to be done with our dairy produce, after July 31; :-1920, :wheu the" present contract with" the Imperial.. Government expires?''-, .-With, a view to securing .any information: which'"might'''■be: available oil this point, the .writer cabjed Mr ..Ellison to investigate,: and also wrote. Mr; Massey asking if he would, in the interests of the producers,: cubic- London and ascertain if possible, the minds of the Imperial authorities in this connection. yMr Massey immediately agreed to -send the necessary - cable, but up to the present no reply, has been .received;" Mr Ellison cabled .as : : follows: •,.Contracts butter and oli'e'eso, Ministry unwilling, make definite pronouncement. My opinion price butter likely he controlled, for two possibly throe years more.',. Choose may be released ' next year.- depends': oh. outside ■'demand 'for' world's supplies. "; Anticipato Ministry will W ant make further"'contracts. —Ellison."'- ;■'. .: .. .

Tins .cable gives probably all the information we were entitled to. expect,Vand which, boiled down, simply. means that the Im,periaL:ftuthorities have not -considered the matter-with a. view to a decision! Meetings ot butter and cheese producers will be held early m ..January to consider the position, and the discussion will, no doubt,■!centre round the question " whether tli'e producers shall demand a ' free, market.' or. ■if posSl m?- *■ . to tne Im Perial authorities." • ,- Ihe (Position; of food supplies! of the world is. well-nigh desnerato: Mr-Hoover, who liandlod the food supply of 'Belgium dnr-a'lg.'-the war, and who. after the signing of the armistice analysed the whole position in the-interests of the Allies, is probably" the greatest authority in the world to-day on the question of food sunplies. jiln his roW'|. to the Imperial Govommeht, writing 01 J™ causes of food shortage, he says: , '"_ m .all causes, accumulated to-ditTnrent ; intensity in different'localities, there is the essential fact that unless productivity can bo rapidly 'increased, there can. be nothing hut nolitical, moral and economic chaos, finally interpreting .itself in loss, of life on a .scale hitherto undreamed of. ::•:' .' " \ ,■■■';.

(2.) No economic policy will bring food ;to those stomachs or .fuel hearths that; does not secure the maximum. There is no use.of tcoi-s over, rising- prices; tboy ! arei to. a grout degree a visualisation of iiiKiimcibnt production. :■',;'■: t '■■' "(3) The stimulation of production lios in. the patli of avoidance of all limitations of the reward to the actual producer. In, other words; attempts. to control prices (otherwise thp.ii in ,the sense of control of vicious speculation), arc the negation of stimulation to production, ,and can only result in further curtailment •of the total of commodities available for the total number of lnimiin beings. to be fed, clothed j and'housed..! The argument-so'.much nd-I'v-iinccd that the world shortage may- develop, and justifies; continued control of distribution and price,, is based upon the falacious assumption that, even -if the world-markets are free of restraint, there is a shortage to-day in any r.omrtioditv so profound as to ondamrer .health.: and life." i This_ report certainly indicates', that, in his oninion, price restrictions should cease' On these grounds alone' there is abundant '•v'ifionce in favour of ■ a "free markof." .It is nioro than likely, however, that Mi: Ellison's opinion "that the price ''.."of buttcwill bo controlled for two or three years'i>. is the correct one, and if butter prices arc going to bo controlled it-is almost ai,'cev ; tainty. that cheese prices will alsQ.'bo cpn ti-nlled. The question then arises: "If price's are going to be controlled in -England, will the Imperial authorities purchase the New, Zealand oetnut. or will the allow the producers to ship throtigh then own channels to any market they choose?' The position which arose in Canada ir connection with the cheese purchase lead? the writer to believo that if there are pjfiSe restrictions in England, the Imperial authorities will purchase the-New Zealand -output. ■ Shouhl this ,be the decision of the Imperial authorities, what is going-to be the price? The day is past when the '.British Government is entitled to make a. pro,fit put. of the producers, of the Dominion and the outcry against,the Home' authorities for|pro(t.teering in connection 'with wool and moat might well, apnlv to, dairv produce. .The producers'of Now .Zealand are- entitled''to one price and oho-price only, viz., retail price in En gland-less-, all commissions and charges for handling. To secure this pricejtho writer is strongly of the opinion that in the event of the. Imperial authorities •- deciding to purchase | one -or- more representatives from ■ both butter and cheese committees should proceed to London and negotiate the deal.. We feel sure that Mr Massey, senting the Dominion ••'i'.iH lend overv support to negotiations"-.;. '.Si? way. Canada has invariably secured -'better' Prices ,for hm-, produce than New Zealand, due mainly to the fact that repro 'sentafti'ves of the, 'lmperial- Government visited Canada and made the deal, direct with representatives of the producers' They are not likolv to send representative' to New Zealand, so lot representatives of producers go to London. There wil certainly, bo -a keen demand • amongst producers, and rightly so, for a "free market," and the above suggestion to send •representatives to London is well worth consideration, if only to, fight for; that, "free market." :; .-