COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LX, Issue 121, 20 April 1940, Page 12

COMMODITY MARKETS AND PRICES.

WORLD TRADE. (By “l’enloo.”) The invasion by Germany of Norway and Denmark lias changed the world trade situation in many ways. The Allies have gone to the help of Norway and this has had a profound moral effect on the small neutral countries. Germany, cut off from trade in the north, lias been endeavouring to coinpel trade with Yugoslavia, Rumania, and Hungary, and sought to police the Danube to facilitate the movement of commerce in her direction. Rumania and Yugoslavia have refused this request, which they would never have done but for the practical demonstration of Allied help to Norway. A German trade delegation has been in Rumania for weeks trying to speed up deliveries of oil and wheat exports. Rumania, it was reported, replied to these efforts bv* prohibiting the export of oil. This has since been denied, but the .need for reserves for the armed forces and internal consumption may compel Rumania to give Germany less oil. She has a million men with the colours, and she needs much more oil for her military, forces. With regard to wheat, it is claimed that the next harvest will be poor, and it is therefore necessary to, conserve current supplies. Oil is one ot Germany’s pressing needs, for without a full supply of this essential war material her mechanised army would be impotent, and her aircraft and U-boats would bo unable to operate. Germany cannot afford to waste a gallon of petrol. She hoped to secure command of Narvik, the port from which iron ore was obtained, and sent a comparatively strong naval force to capture the port. The Germans have scarcely been in occupation a fortnight for Narvik is under British control and ore supplies from this source arc completely blocked. Germany was also getting a number of essential metals from Narvik which'she must now do without. That the metal position has become very serious for Germany is proved by the fact that sho has to comb her territory to secure scrap metal. The trade position of Denmark at the moment is somewhat tragic. Kite lias lost her dairy produce trade with Britain and must sell her dairy products to Germany in exchange for baseless money. But this may prove to bo a temporary loss. What Denmark stands to lose is the quality of her herds. Denmark has to import animal feedstuff’s to maintain her herds. This she cannot do just now. hence her dairy cattle must go hack in condition. BRITAIN’S EXPORTS. Britain’s concern in this war period is to increase her exports, and this is being organised on sound lines. The new company, the capital for which is being lound by the British Government, appears to be devoting attention to trade with the Balkan States and the Middle East. Italy /is taking more coal from Britain since she cannot obtain supplies from Germany. Britain is importing very largely; in fact sho is obliged to do so and it therefore becomes very necessary that she should increase her exports so as to he able to pay for some of her imports. She stands a good chance of expanding her export trade, once the neutral countries get rid of their fcai complex, in respect of Germany. Notwithstanding all the difficulties of trading in this war period prices are being kept reasonable by the authorities, while in the United Kingdom retail prices have actually declined. America’s trade is largely in aircraft, which the Allies arc buying on a largo scale. In the United States the manufacturers of aircraft have developed several types of powerful machines, such foi example ns the “flying fortress.” It is claimed that American exports have risen by 33 per cent., notwithstanding that the Allies have banned certain lines. Erom this end of the world wo am more than maintaining our export trade, for the produce we exporfris urgently needed by Britain. But our' trouble at the moment is importing British merchandise. The authorities have further tightened import restrictions by cutting down many lines by a substantial percentage, and prohibiting the importation of others, which latter must cause a serious disturbance to domestic trade besides further raising the cost of living. The war has caused attention to he directed to food wastage in the home. There is no doubt that there is a great deal of such waste, but it is more noticeable now that economy is urgent. Miss Elorence Horsburgh, M.P., Parliamentary Secretary to the Minister of Health, has been urging housewives not to waste food. In an address to teachers of domestic subjects she pointed out that if every man, woman and child in the United Kingdom were to waste half an ounce of bread daily, the total for a year would amount to 247,000 tons of wheat, or nearly two weeks’ normal consumption. This figure was equivalent to t?ie amount carried by about 2d wheat ships. If every person in the. United Kingdom were to waste one-tenth of an ounce of fat daily, the total would amount in a year to 50,000 tons. The peeling of potatoes was an example of unnecessary waste. The wastage should not be more than 10 to 15 per cent., but much too often it was as high as 30 per cent. Keeping up a high standard of health and husbanding food supplies were necessary for tho winning of the war. Waste is one of tho great difficulties at all times, and waste is to be noted in all countries. And it is not restricted to the waste of foodstuffs, but permeates business life. In factories there is much waste of raw materials; in offices paper is very much wasted—and through this kind of waste, of money. Waste adds to the costs of production, and ultimately consumers have to pay for it. In war time we seek to avoid waste, but it should bo practised always.