The Daily News WEDNESDAY, JULY 19, 1933. REGULATED MARKETING.

Taranaki Daily News, 19 July 1933, Page 6

The Daily News

WEDNESDAY, JULY 19, 1933. REGULATED MARKETING.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA. High Street.

With the failure of the World Conference to evolve an economic plan in which all nations can share, it looks as though the alternative—developing trade within the British Empire first and; subsequently arranging new conditions with foreign countries—will be forced upon the consideration of all the Governments in the British Commonwealth of Nations. The most important of them all, the Government of Great Britain, has definitely abandoned the old plah : of so-called free trading. Free traders always contended that the logic of their theories would be so indisputable as to win other nations ,to their adoption, but/they reckoned without the spirit of nationalism and the fact' that Great Britain could not continue indefinitely to be the manufactory of the world. Regulation of industry has remained the rule in every country but Great Britain, even though sometimes it has been foolish and on many occasions has cost the consumer much more than was apparent. Neverless the postponement of the World Conference shows that industries regulated by tariffs, bonuses, subsidies and all the rest of the high protectionists’ equipment have created a position that the combined wisdom of civilisation must study longer before that position can be improved. In New Zealand the suggested regulation of imports into Great Britain is causing much, perturbation, and with very good reason. But however much the Dominion may dislike or fear the restriction of exports to Great Britain the final word will, in two years’ time, rest with . the. United Kingdom. The dairy industry is wise, therefore, in-looking around to see whether advantage as .well.as disadvantage may be derived from the regulation of the .marketing of its exportable produce. For that reason the latest proposals for the control and regulation of the marketing of New Zealand butter and cheese demand very careful consideration. The, Dairy Control Board is reported to be withholding definite judgment until the return of its chairman, Mr. W. A. lorns, through whom the new marketing proposals have been made. The underlying principle of the/ suggested system appears to be the elimination of speculative buying. There is much to be said for and against the speculator, but the board should have sufficient data in its possession to know whether speculative transactions have in/the long run been a benefit or the reverse,- to the dairy farmers of’ New Zealand. A point that requires clearing up is whether the proposed system would eliminate the right of certain factories or groups of. factories to sell through the agents they prefer, or whether they must leave all that to the Dairy Control Board to handle. Still more important is the question whether factories will be free to make f.o.b. sales. There will be general approval of the board’s determination to “hasten slowly” in this matter. It is' satisfactory that the proposals have emanated from'! the importers themselves, and that they are not embarrassed by any suggestion of price fixation. If all trading in dairy produce from the Dominion is to be handled by certain chosen agents, working on commission only, there should be no need for importers to maintain buying agencies in New Zealand, and this should reduce overhead costs which, of course, must in the long run be borne by the dairy industry. That importers in Britain should have made such suggestions is proof that the idea of orderly marketing arrangements is making great headway there. The merchants of Great Britain have had many opportunities of learning how the law of supply and demand can be swayed by arbitrary trading or political measures, and they know now that the hazards of unregulated trading are greater than ever. The proposals are of such vital importance that it is essential that all information in regard to them should be given to the industry for examination. Whatever action the Control Board, as the executive of the industry, may decide upon it must at least avoid the error of arriving at its decision without regarding the opinions of all concerned.