AUSTRALIAN BUTTER TRACE

New Zealand Herald, Volume LXIII, Issue 19255, 18 February 1926, Page 7

AUSTRALIAN BUTTER TRACE

THE MARKET IN CANADA, THE RECIPROCITY TREATY. It is reported in Vancouver ' v .at the Australian trade reciprocity agreement with Canada in regard to butter was bringing heavy losses to speculators who had the Canadian supply cornered. In referring to the matter the Melbourne Argus said: —"The statement is discounted heavily by traders in Melbourne. Moderate quantities of Australian butter were purchased, mainly in Svrlney, toward the close of last year at 143s a cwt. f.0.b., but the amount shipped, as far as it known, was slight in comparison with Canadian production. It is pointed out that Canadian traders could now buy, if they wished, from either Sydney or Brisbane at about 153s a cwt., f.0.b., which is only a Id a lb. higher than the prico paid before the New Year. " In the opinion of one Melbourne agent, the anxiety of Canadian speculators may be due to a misunderstanding in Canada of the Paterson plan. Traders there may be of the opinion that the operation of the plan will enable Australia to sell butter overseas at reduced prices. That, of course, is not the case. Doubt is expressed at the possibility of cornering the market for butter in Canada, where production has increased largely in recent years. If that had been done, the possibility that Australian butter might be imported, if prices were advanced, substantially might act as a check to the profit-making plans of speculators. " Under the trade .agreement with Canada, the tariff on Australian butter was reduced by only one cent (or a lb., and is now 2 cents. The general rate being 5 cents (2£d), against 4 cents (2d), before the agreement came into force. If Canadian prices were forced upward by speculative activity, neither the duty of Id a lb. on Australian butter, nor that of 2£d on foreign butter, would be of much effect in checking importation."