COMMODITY MARKETS AND TRADE.

Manawatu Standard, Volume LV, Issue 258, 28 September 1935, Page 5

COMMODITY MARKETS AND TRADE.

MINING SHARE MARKET. I (By '“Penloo.”) Tn 1933 it seemed almost certain that there would be a boom in mining for gold. Consequent on Britain abandoning the gold standard, the price of the metal steadily advanced, and was forced up higher when the United States started their gold-buying polic>. Eor some considerable time now the mice of fine gold has not fallen below 140 s sterling per ounce. 'there was a gold mining boom in New Zealand, but it began at the wrong end. There was a boom in company flotations, but not in the yield of the precious metal. For the seven months to the end of July last the quantity of gold exported from New Zealand amounted to 99,489 crude ounces, as compared with 92,545 ounces in the corresponding seven months of last year. There is an increase but in no wav commensurate with the enormous expenditure on gold mining during the past three years. There are about 3000 mining companies—reefing, .sluicing, and dredging—registered in the country, and a fairly large proportion of these have come into existence during the past four years. The business deals on the Stock Exchanges are relatively very small and the number of companies whose shares are dealt in can be counted on the fingers of both hands, and some of those like Mountain Morgan are Australian companies. Those interested in mining at its financial end are naturally much perturbed at the dullness of the market, and the absence of speculation. This dullness is an effect, the cause being that results have not come up to the flamboyant, and in not a few cases, wholly unwarranted promises and hints contained in prospectuses. But this is not the opinion of those interested in the financial aspect. '

The mining financiers have formed a mining league, and they have outlined sixteen requirements for restoring the gold mining industry to the favourable attention of speculators. The first requirement is the timehonoured commission, for the purpose of establishing the industry on a permanent basis. The second clause brings in “unemployment.” The third clause seeks to enlist the sympathy and co-operation of all interested in the development of mining. The revision of the Mining Act, and the abolition of the gold tax make up two additional clauses. Clause 6 is the centre piece of the league’s requirements and reads as follows:—“To nav a bonus of £1 an ounce for all gold won in New Zealand by nondividend paying developing campanies.” This would be costly to the State for the number of such companies is rather large, and may remain large. The fact is the quantity of gold is not there to be extracted in quantities. The Government is to be called upon to do many other things that the State should not do. One clause requests the appointment of a mining engineer of world-wide experience to act as mining adviser to the Government, which a good many people think unnecessary for there are competent i mining men in the community to do all that may be required. ABNORMAL TWINS. The abnormal twins which are at once the curiosity and menace of the world to-day are known as “plenty” and “poverty.’’There is an abundance of foodstuffs in the producing tries, transport between countries is now rapid and relatively cheap, and yet in Europe there are millions who are actually starving, and many millions more who are underfed and under-clothed. The produce countries cannot quit the surplus production and have actually had to destroy much good food, or, as one clergyman forcibly stated the position, “throwing the gifts of God into God’s face.” This is an effect, and the cause is due to the vicious economic policy adopted by so many countries in Europe of economic nationalism. To carry out this mistaken and disastrous policy they are obliged to spend millions of money in subsidising production in their territories, and feeding millions of people daily. It is a very costly policy. In London good, pure, wholesome and nourishing butter can be bought at 112 s per cwt., in Paris the price is about 2245. Canadian wheat can be bought at about 5s per bushel landed in France, while the

French millers are compelled to buy French-grown wheat at 10s per bushel. We cannot help wondering whether if a Frenchman ate a slice made of Canadia wheat, with New Zealand butter spread on it, he would suffer from abdominal lassitude or catarrh. It would scarcely be fair to accuse the statesmen of starving their nationals for they believe they are caring for the interests of their respective countries by erecting high unchmbable tariff walls. This is really the aftermath ot the Great War, which has made us familiar with, “off-gold, depreciated currencies, inflation, deflation, over-production and under-con-sumption, brain trusts, and what not. Tim man in the street will soon have nothing but economics to discuss in the immediate future. POTATO PRICES JUMP. The homely potato is not given to oroviding market sensations it was on one occasion used as a metaphor by the late Maori prophet Te Wlnti. In the early eighties of the last century the prophet had been causing considerable trouble and eventually a contingent of about 1500 men surrounded the pa at Parihaka, and Te Wlnti | was arrested. As the Armed Constabulary officers approached to effect tno arrest Te Whiti turned to his followers and remarked “The potato is cooked.” . Cooking potatoes now is a costly affair for the price of the tuber lias bounded up. In Wellington £lb to £l7 is being paid ex store. This means that a good many people must curtai consumption of potatoes. The rise is due to climatic conditions, and not to env system of orderly marketing or other modern commercial claptrap. Auckland province has experienced a very wet season, and the K ro "” h , ~ ® tuber has been affected. The Pukekohe district is the principal .Potato area, and the crop there is said to be disappointing, the yield being very pool • It is a question whether the lngb price is really warranted. But at any rate the potato market is out of baliance, and economics always worlc to restore equilibrium in such cases. Apart from the inflation in the current price, which will soon he squeezed out, tlie price will eventually fall to its economic level. That may not he for some months. The current high prices will induce many farmers to devote an additional acre or two to potato growing, and then will follow a large crop —it may even be a bumper crop lf climatic conditions are favourable—and the supply would then be much in excess of the demand and prices would slide down. It is a remarkable fact that human tendencies affect prices in an unnatural way. When prices are tending upwards unwarranted optimism sends them higher than thev should really go; then there is a rush to grow potatoes to share in the high prices. The supply over- ' rrises the demand, prices slump almost below the cost of production, and the pigs on the farm get the benefit, for jit. would‘be profitable to convert the potatoes into pork, bacon, and ham.

PIG BREEDING. MANAWATU RESOLUTION SUPPORTED. A meeting of South Wairarapa dairy farmer* interested in pig breeding was held in Greytown to consider a resolution forwarded by the Manawatu-Oroua branch of the Pig Breeders’ Association, in regard to prices for exportable and unexportable pigs. The chairman (Mr L. J. Thompson) stated that some years back Messrs Dalgety and Co., Ltd., inaugurated a scheme for buying pigs and gave id per lb more for unexportablc than for exportable pigs. Under the Meat Board proposals the opposite rule prevailed. He considered they should get on the right foundation of breeding before talking of exportable pigs. They wore penalised to the extent of id per lb for inferior second grade exportable pigs, but the disparity was between the exportable and unexporlable pigs. After all, prices, etc., were not a matter'for the meeting, hut the question of appointing a delegate. Mr H. J. Hutchings said if the Government wanted them to produce bacon pigs thn they must see that the products used for fattening came down in price. Tho breeder must receive some recompense for his work. The chairman observed that farmers should grow their own fattening food. Mr Hutchings stated ho knew of one farmer who had grown his own peas, etc., and his experience was that ho would have got more profit from the sale of the peas than he got from his bacon pigs. The chairman said that with the price of produce ruling to-day the dairy farmer had to look for a supplementary income. He believed there was money in pigs, provided they were properly cared for and managed. • After a general discussion, the following resolution was carried:—“That this meeting of South Wairarapa pig producers endorses the resolution sent forward by the Manawatu-Oroua branch of the Pig Breeders’ Association and agrees to lend its sup port to tho resolution by appointing a local delegate to join in the deputation to the Meat Board and Executive Committee.”

Mr B. Roberts was elected delegate. The suggestion was made that they should form a Pig Breeders’ and Marketing Association in the Wairarapa and Mr J. Watson, secretary of the Farmers’ Union, said he would see what could be done.