THE BUTTER POOL.

Otago Daily Times, Issue 18676, 4 October 1922, Page 6

THE BUTTER POOL.

A British view of the butter pool is contained in the annual review of the imported dairy produce trade issued by W. Weddel and Co. (Ltd.) Though it may be discounted to some extent as a partisan and not disinterested opinion the standing of the firm entitles it tocareful consideration. The official mishandling involved in Government control strengthened the firm in its belief of the futility of attempting to maintain mass control over the sale of foodstuffs in Great Britain. It was, therefore, surprising to Messrs Weddel and Co. that the lessons of failure were sc quickly forgotten, for, says the report, “no sooner were the evil consequences of the British Government’s handling of butter revealed, than an attempt was made to create by Act of Parliament a compulsory dairy produce pool.” Most of the avowed objects of the Pool Committee are regarded by -uessrs Weddel as “laudable aims” wh : ' “have been attained in other trades by consent of all concerned, and without invoking the aid of legislation or compulsion of any kind.” Their idea is that the step was douutless taken in good faith but Iritnout complete knowledge of the difficulties to bo faced and without practical experience of the conditions at their end of the world. They regard the proposal for a compulsory pool as a mistaken remedy, mr too sweeping and revolutionary. There is now time, the report says, to review the situation more calmly with a view to tne elimination of, anomalies in shinning arrangements, freights, and congestion of stocks, xnis can best be done by frank discussion and with the help of all sections of the industry. The considered opinion of Messrs Weddel is contained in (he following paragraphs: It is useless to expect to achieve the best results by force or by ignoring tradition and experience, and superimposing an entirely now system upon_ nn unwilling market, entailing, as it might well do, the destruction of some vital parts of the delicate mechanism of distribution. So far as preventing speculation is concerned, it may be found impossible in anv trade or in any market, to eliminate it entirely,, no matter how rigidly it may bo controlled. Indeed it might bo shown, from the experience of Government control and of trade trusts, that, speculation is often most rampant when *a market comes under the control of a few individuals. Forward .'sales 'of tho season's outputs, or the bolding up, of largo stocks by consignees, in the vain hope of selling everything at the top of the market, might be held to bo forms of speculation open to criticism. Much, therefore, depends upon what form of speculation is to be prevented; but if any steps can be devised to stabilise markets, without at tho same time destroying initiative and hampering sales by factories, London traders would gladly welcome their adoption. Trie proposal to po-operate with competing producing countries like Denmark. Australia, and Canada, may be an ideal to bo aimed at in the distant future; huh at present it is only chimerical. If producers in New Zealand could bo persuaded to forget the feelings of distrust which have been fostered in some quarters from not altogether disinterested motives, end wotdd confer with the distributive end of the business, instead of antagonising it, there would be. more hopo of finding real and permanent solutions for the various problem? which'at present ■beset the dairy nroduce trade.