The Manawatu Daily Times More Butter Will Be Required

Manawatu Times, Volume 60, Issue 231, 1 October 1935, Page 6

The Manawatu Daily Times More Butter Will Be Required

Britain’s imports of butter have more than doubled duxu t the 21 years from 1913 to 1931. Butter consumption in Bnta n has increased at an accelerating' rate, for during the iotu ycais from 1930 to 1931 the increase was 34.8 per cent.

In 1930 consumption per head of population was 18.{lbbof butter and ll.Slbs. of margarine, a total of OO.olbs. In IJJi butter had risen to 25.21b5. and margarine had decreased to 7.91b5„ giving a total of 33.11 bs. Butter, gamed bllbs and margarine lost libs. The total figures had increased by 2 2 lbs, or approximately 9 per cent.

Britain is now consuming 485,000 tons of imported and 50 000 tons of Home butter a year—that is, an average or 10,3UU tons every week. In addition to this, 100,000 tons ol margarine were consumed in the year.

Has saturation point boon reached'! Some authorities appear to think so, and advise that any increase m price would quickly cause a decline in demand and consequently in consumption. n u me oilier nand, some who have closely studied the position and taken account of the improved economic conditions •it Home believe that a moderate rise m price would not affect consumption. It is further considered that the constantly rising standard oi living will result in a greater increase hi Duttei consumption. This is most certainly possible. « our average butter consumption is over JJ.Olbs. pel head, ihis exceeding Britain’s average of 251bs. by no less than oo pu cent. During the past four years Home consumption has increased by 35 per cent. It is quite within the realms oi possibility that a further increase oi, say, 25 per cent., will be made during tiic coming four years. Should that eventuate Britain would require an additional importation of 134,000 tons per annum —an amount equal to the whole oi: our butter production for the past season.

Should Britain require the extra supplies that appear possible, it would almost certainly be Australia and New Zealand who would benefit. They are the two important Empire producers and are the two countries who. have shown capacity for rapid and sustained expansion during the period oi low prices. it might be reasonably assumed that New Zealand would ,be able.and would be allowed to supply a third of the increased requirement. There is thus the distinct possibility that we may be able to increase our butter exports by 45,U00 tons during the coming four years. That would provide for an expansion of one-third additional to present production.

To-day’s cables show that the butter market at Home is in a particularly strong position. One of the most significant i'eatuies of the situation is Germany’s ability to absorb more Danish butter, a striking proof of the fact that the more prosperous Germany becomes the sooner New Zealand will get back to the days of payable prices and general well-being. Are The Banks Our Masters ? There is an opinion quite widely held that the < banks are complete masters of this Dominion; that affairs of State are conducted in accordance with the banks’ desires; in other words, that the sovereign will of the people of this democracy is but a hollow sham, bitch an allegation is a most serious one. ft is not to be desired that any group of interests should attain such paramount power. Let there are some who are confirmed in the belief that the Bank of England is the real ruler of NewZealand; and that institution is in turn controlled by a group of international financiers responsible only to themselves. As to the reality of these opinions, let us consider certain facts. Philip Snowden, Labour Chancellor of the Exchequer, has been termed “The Incorruptible.” An able, absolutely honest statesman, he came in close contact with the Bank of England during his term as British Chancellor of the Exchequer. In his public utterances and in his autobiography he has seen fit to praise the British banking system, the cornerstone of which is the Bank of England.

Coming to our own shores, where we are all belter acquainted with the relations between the State and the banks, recent events may be considered. On two occasions there arose, a major conflict of opinion between the banks and the National Government. Firstly, there was the increase on the exchange rate; secondly, the establishment of the Reserve Bank and the subsequent appropriation of the banks’ gold stocks at face value. On both occasions the banks’ objections were overruled and Parliament’s supremacy was made manifest. Actually, the banks operate under statutes passed by Parliament for their control. Many years ago Parliament authorised the banks to issue notes, but last year Parliament took away this authority. There does not appear to be any definite evidence that the banks are all-powerful. Indeed, there-is evidence that the banks’ very existence is dependent upon the will of p arliamcnt