CHRISTCHURCH BUSINESS MEN’S VIEWS.

Otago Witness, Issue 3495, 8 March 1921, Page 14

CHRISTCHURCH BUSINESS MEN’S VIEWS.

(From Our Own Correspondent.) CHRISTCHURCH, March 3. The Sun to-night prints a number of in>terviews with leading business men in Christchurch regarding the dominion’s financial position and prospects. The opinions vary in character, some optimistic and others dubious or pessimistic. Speaking of higher shipping freights, the manager of a large stock and farmers’ agency said it was nor fair to blame the shipping companies for the rise made by the Imperial Government through the London Tonnage Committee. It seemed at first a rise in the * middle of the season and was unwarranted* but from a private source lie learned that the committee had made a miscalculation when it. computed the rates announced at the beginning of the season. Later, it found a rise of 5 per cent, was necessary, and this had been made. Speaking about the possible effects of putting the commandeer meat and the new season’s meat on the market together, he thought this had been exaggerated. Imperial Government rneat was a small factor in the situation. In Canterbury, Government lamb, also wether mutton had been cleared out of the stores when the season opened, leaving only beef and ew e mutton. How the remainder of the Government meat was marketed mattered very little. It had been 6 j l ßfi’ested that the fall in prices had been cue to a lack of refrigerated freight space, but this was not correct, for no fewer than Sir t, Reamers had been set down for March loading, estimated at 450,000 carcases. *3 lrs should be ample, but possibly the waterfront trouble would cause delays and consequent loss. “I think we shall Patient,” he said in conclusion. If, as I believe, the British financial depression is the real cause, recovery will not be sudden, and we must set our course accordingly. A business man indirectly interested in the meat trade said the whole situation in England was uncertain, arid would remain so so long as the Imperial Government held large stocks of commandeered meat for disposal. These stocks were a very disturbing factor over the whole Empire. No one knew when and where they would be marketed, and the course of trade was interfered with by 'an element upon which no one could calculate. The rise in shipping freights had been partly responsible for the drop, but uncertainty of future freights waa a bigger influence. The farmer could act no longer in anticipation that his meat would be on board a ship iu a few months, and the same applies to buyers. The carnage of refrigerated produce all the world over appeared to have been upset, not only by industrial troubles, but also by the shipment and reshipment of British meat to and from the United States. A representative of an export freezing concern said the outlook on the London market was gloomy. Not only lamb from America had been jumped info London, but a great deal of meat purchased by Vesteys from trie Imperial Government, and intended for sale on the Continent, was being sent back to London. Consumption had fallen off in England owing to the general depression there. Exporters had been “caught,” owing to their being unable to get their stock away. Purchases were made on the assumption that moat oonld be shipped promptly, and would sell at the present “control” prices in London. There was every indication that control prices would be done away with ; if so the rates in England would "slump. On this assumption buying limits in New Zealand had been reduced, but apparently exporters had missed the market in respect of purchases made. Since the killing season opened a quantity of meat, just being loaded at Lyttelton for London by his firm, represented a week’s killing, and was the first shipment of the new season’s stocks made since January. On present indications by the end of April his firm would have exported equivalent to about three weeks' killing. Lamb purchased during January and February would cost Is 0 13-14 d to put it c.i.f. The controlled price was Is Id. None of this lamb had been sent to England. As to whether outside possibilities wei'e being used as a lever by the exporters to force down the prices paid to the farmer. She said that if the farmers thought so, they could ship the meat themselves. Cooperative freezing concerns were in as bad a condition as the proprietary concerns. Pelts at present were unsaleable, and the value for them could not "be given. His concern had purchased 12,000 head of cattle since the season opened, but had not been able to sell a single hide. Another exporter said all buyers of stock had to readjust their ideas of values. At the present low ' prices there would certainly bo losses made by exporters. The American market for lamb had proved a “frost.” Large quantities bought from New Zealand by America had been shipped to London, and he just received cable advice that further shipments were to be made, comprising 800.000 carcases Everything was working towards deflation of values on the London market, and unfortunately for the producer the charges in connection with the killing, handling, and conveyance of meat had gone up enormously. Personally, he did not think the farmers, as a body, realised the position. lie had never seen such a time as this. Much of the coarse crossbred slipe wool would probably have to be held by exporters for at least a year, and at present it was almost unsaleable. In reply to a question he stated that meat was being purchased at a loss, but exporters had to keep their business connections supplied. A great deal, of course, depended on the rates of freight to rule when the Imperial Government relinquishes control after April. The impression existed that owing to the glut, shipping rates must come down. Shipping concerns, however, pointed out that there hail been a large increase in running costs. Cargoes to New Zealand were falling off, and there was less merchandise being sent from the Dominion. It would pay such concerns to lay up their ships rather than carry at a loss if the farmers thought they were not getting a square deal from the export* buyers. They could consign their meat Home on their own account, and they would probably then get a shock.