QUOTA REPERCUSSIONS

New Zealand Herald, Volume LXXI, Issue 21791, 4 May 1934, Page 5

QUOTA REPERCUSSIONS

EXAMPLE OF BACON TRADE / . DECREASED CONSUMPTION Evidence that the application of quotas to bacon has resulted in decreased trade has been supplied by the diminished profits of many of the large English provision houses. Decline in the turnover of a commodity must inevitably affect the producer, in whose interests restriction has been applied. This aspect does not seem to have been appreciated fully by those favouring the quota principle. The bacon position is surveyed by the Economist, which bases its conclusions on the experience of such concerns as Home and Colonial Stores, Limited. "Very soon after the Government's import restriction policy had been adopted, a rise in the retail prices of bacon began," states the Economist. "The decrease in consumption, which was bound to follow, has now become apparent. Home and Colonial Stores suffered a fall in profits last year of £150,000, directly attributable, according to the chairman, Sir James Martin, to a shrinkage in the consumption of bacon. The same tendency toward shrinking bacon consumption was recorded at the general meeting of Meadow Dairies. Moreover, Sir James Martin, who may be assumed to have some practical knowledge of the bacon market, expressed the opinion at tho Home and Colonial meeting that, if the present restrictionist policy is * continued, bacon may "go out of fashion as an article of food in many households." Sir James said: "The public, who are, after all, pretty shrewd in their judgment, do not hesitate to buy what in their view offers the best value, and they have no hesitation 'in substituting one article for another in budgeting for their household requirements."

The Economist continues; "This is but one among many of the simple economic facts which Mr. Elliot's clumsilyimprovised schemes failed to take into account. The theory behind those schemes was that the price of one commodity after another could be forced up in the interest of the producer by limiting.the supply: and the probable repercussions of snch a policy on demand were forgotten or disregarded. In practice, as was inevitable, the consumer is beginning to assert himself; and irt the case of bacon it seems likely that in the long run not only the retailer and the public, bub the farmer himself, may be injured. We hope that the reaction of the consumer in this case may incline Mr. Elliot to study the factor of demand. If he did so, it might perhaps dawn upon him that the interest of producer and consumer a,like lies not in restriction of supplies, but in a cheapening of production' and an expansion of demand." MOTUROA OIL FIELDS FOURTH WELL COMPLETED' The fourth well drilled by Moturoa Oil Fields, Limited, at New Plymouth, has been completed to a depth of 2184 feet. Besides tho producing sand mot with at 2134 feet, another oil strata has been encountered at 2175 feet. During cleaning out operations some 2500 imperial gallons of clean crude oil were obtained. A 60-foot screen has boon placed in position and two-inch tubing will be run to the bottom to bring the oil to tho surface by gas pressure. This work is expected to occupy a week or ten days. All water has boon successfully shut off.

AUSTRALIAN PRODUCE (Received May 3. 8.45 p.m.) SYDNEY. May 3 Following are to-day's quotations on the Sydney produce 'market:—Wheat,, Is lOd for bulk. Is lid for bagged lots on country sidings, equal to 2s 7d a, bushel, ex trucks, Sydney. Flour, £ll 10s. Bran,' £4 ss. Pollard, £5. Potatoes—Tasmanian, £7; Victorian, £5 lO.s. Onions —Victorian Brown Spanish, £5 10s to £6. Maize, 3s. Adelaide prices are:—Wheat—• Growers' lots, 2s 3d. Flour—Bakers' lots, £ll 10s. Bran, £5. Pollard, £4 los. Oats—Algerian, 2s; barley, 2s.