EFFECT OF THE STRIKE.

Taranaki Daily News, 7 May 1926, Page 9

EFFECT OF THE STRIKE.

THE MARKET FOR PRODUCE. TAXATION OF MEAT PRICER SMALLER DEMAND LIKELY Advice has been received from London that deliveries of frozen meat from ships and stores have been stopped pending the Government making arrangements for transport, which it was expected would be done on Wednesday. As was anticipated maximum prices are being fixed. The importers have provisionally agreed that in the meantime the following prices will rule ex store:—Lamb, 10 l-8d; mutton, 6 3-Bd. The rates are practically those at which New Zealand meat was selling when the strike was declared, and they provide a ’ satisfactory return for the producer. The chief anxiety in the meat export business is what effect the strike will have upon the demand. In the opinion of London authorities a decrease in consumption will be noticeable after two weeks, and the probabilities are that if there is no dislocation of shipping from the meat-producing countries, stocks will rapidly accumulate should the struggle continue longer. In that event a drop in prices is bound to occur and as a considerable amount of New Zealand meat will be involved, the anticipated return to the Dominion’s graziers will not be realised. EXTENT OF MEAT STOCKS. However, the fixation of prices at practically maximum ruling values, guarantees the market for the moment and the future prospect depends entirely upon the duration of the strike. No knowledge is possessed as to the extent of meat stocks in Britain. Ono of the recommendations of the Food Commission was for the periodical publication by the proposed Meat Council, of the stocks in the country’s stores, but so far it has not been acted upon. It is common knowledge, however, that the weekly supplies of chilled beef from the Argentine are Britain’s mainstay and it is quite certain that if they were cut off by a shipping strike, “homekilled” could not feed the people. A merchant who was consulted upon the possible effects of the English strike upon New Zealand trade said that importers were not unduly alarmed at the moment, believing that its very magnitude would bring about a speedy settlement. “The possibility of this trouble has been recognised by British manufacturers for a considerable t.me,” he said, “and for the last four months, and in some cases longer, they have been protecting their contracts with New Zealand firms against non-delivery through industrial trouble.

CAUTION IN IMPORTATIONS. “This precaution has not resulted in excessive importation against a period of shortage in supplies. The business advisers of the country have been urging caution and that caution has been exercised by a large number. The fact that there are now normal shipping facilities has helped to curb any tendency there might have been to import in larger quantities than ordinary trade demands. It is now possible to have goods, ordered by cable, in consumption in seven weeks, and the general policy of Importers Is to buy in small lots frequently. “While it is the general opinion that so great a strike cannot last long, It should be realised in New Zealand that should it continue for a month the Christmas trade will be disorganised. The loss of a month’s output from the factories in Britain could not be made up before the end of the year and the consequence might be that New Zealand’s Christmas supplies might not arri e as early as merchants required them. The custom is to obtain delivery in October and November. LOWER PRICES FOR PRODUCE. "The most serious aspect I can see, however, is the effect the strike will undoubtedly have upon the price of Ney Zealand butter, cheese and meat, should it last more than a few days. The capacity of millions of people to pay ordinary prices for these comm-Nties etill not continue long. This will press the market to the injury of the producers and of general trade.” In the absence of news to the contrary it is probable the promises of the British strike leaders to maintain food services will be fulfilled; it would be suicide for them to do otherwise. It may. ‘ borefore, be accepted as certain that ships containing foodstuffs will be discharged and that the refrigerators will be kept working. The question arises, however, whether insulated vessels will be able to leave Britain for New Zealand or Australia seeing that they will not be able to load the cargo they bring on the outward voyage. There is no reason for anxiety at present over the dispatch of dairy produce and meat, for the vessels in south waters now will be able to lift all the freights arranged for the next six weeks. THE QUESTION OF CARGOES. In shipping circles it is believed that even if no shipping strike occurs in Eng- • land, vessels engaged in the New Zealand trade that are now in Home ports or due to arrive there during the strike, will have to “lay up,” because they could not leave empty, for the sake of the cargo waiting here. But it is too soon to make forecasts in this matter. No great harm could result from a fortnight’s delay in sailings. Naturally the ships leaving Britain on long voyages will not bunker at Home and those using the Panama Canal will be able to replenish fuel at Newport News and Colon.