THE PRICE OF SUGAR.

Otago Daily Times, Issue 16289, 23 January 1915, Page 8

THE PRICE OF SUGAR.

A cheat deal of nonsense is talked about many things by people who do not know what they are talking about. As an instance of this we find it seriously declared that during this time of war the so-called Sugar Trust is picking the pockets of the people of New Zealand. A simple contrast may help to illustrate the position. In New Zealand, where the Sugar Company is compelled to regulate its prices by open competition with the world, the consumer is being supplied with sugar at 2fd per lb, with a slight reduction on larger quantities. The increase in price since the commencement of the war has been almost trifling. In the United Kingdom, where the Government has taken a hand at regulating rates, the retail price fixed by the Royal Commission is from 3jd to 4d per lb. This represents a doubling of the price as a consequence of the war. It is interesting to trace the course of events which preceded and followed the Government's action at Home in regard to the price of sugar. Shortly after the war began, tie German Government prohibited the export of sugar, and the British Government, being reasonably concerned to ensure a maintenance of the supply in the United Kingdom, at once purchased all the available stocks. The value of the purchase mads by it reached the large sum of 18 milling sterling, and the effect of its operations was that the price of sugar hardened. Germany soon realised the mistake it had committed in damming up so great a source of revenue, and removed the prohibition upon exportation. Thereupon the price of sugar at*once began to fall. The British Government, with its huge stocks of sugar bought at the top of the market, was compelled in self-defence to prohibit all importations. The consequence is that the British consumer is now being charged a higher price for his sugar than in almost any other part of the world. He does not seem to be complaining that his pockets axe "being picked. ■ He accepts the increase in the price as one of the necessary accompaniments of the war. He truth is, however, that Government interference with prices is apt to lead to unlocked for complications and should be resorted to only in cases of extreme emergency. So far as can be judged, the New Zealand consumer has no real grievance in the fact that, as the inevitable outcome of the increased demand for sugar from the source from which he is supplied, his sugar bill has been increased to an insignificant degree.