The Waikato Times With which Is Incorporated The Waikato Argus. THURSDAY, OCTOBER 27, 1932. THE MEAT TRADE.

Waikato Times, Volume 112, Issue 18777, 27 October 1932, Page 6

The Waikato Times With which Is Incorporated The Waikato Argus. THURSDAY, OCTOBER 27, 1932. THE MEAT TRADE.

The meat trade In Britain is in a deplorable condition. It is called over supply, but really arises from under consumption. So many millions in every country are unemployed that the ordinary demand has shrunk to a small matter. The Home Government are anxious to raise the price of meat which is a very serious matter with the British farmer as live stock comprises a large part of his returns. The Dominions have undertaken to limit their exports to the amount sent for the year ending June 30 last, but this will have but little effect on the market, unless shipments from Argentina are drastically reduced, and there are strong objections to that course. If shipments are not to be made how is Argentina to pay interest on her debt and what hope is there of increasing exports to that country? It is not only the money which Argentina has borrowed from Britain, but also the capital invested by Britain in enterprises of every kind that is at stake. Then again Ireland looks to Britain as her only market, and despite the heavy duty, that is where the fat cattle will be sent. The collapse of meat prices Is largely due to Continental conditions. Germany has fixed quotas for the importation of bacon from Denmark, and therefore the bacon is sent to Britain. Whichever way we turn we come back to the same thing. What appears to be over-production is the diversion of produce from some State that cannot, or will not buy, to some other State that has still purchasing capacity. In tho nineteenth century the interests of the consumer were the first consideration and the results were such as the world had not previously known. There was a phenomenal increase of population and of wealth. The numbers to be supplied with the necessaries and comforts were very much greater and their conditions were much better. The wages of the working man were increased, and at the same time each shilling, would buy more than it did. While the working man improved his position all other classes shared in the prosperity. The century had its ups and downs; the distress that followed the Napoleonic wars, and tho lean times that came from the shrinkage In the gold supply in the 70’s and the 80’s, hut the condilion of the people at the end of the century showed an immense improvement in the hundred years. Wc have now altered our point of view. The consumer is little thought of and the producer is the sole object of consideration. All our protection, quotas ami other expedients are arranged with the one object, of helping the producer, and the consumer has retaliated by going out of existence for the time being. Arbitration Courts

have followed the same lines as protection, and masters and men have agreed in an amicable spirit to bleed the public. It is, of course, a commonplace that what we really want is not money, but what it will buy.—food, clothing, comforts. It is a commonplace that in practice is consistently ignored. When loans are made the amount is stated in money, and the Interest Is to be paid in money, although when the time comes that money represents a very different quantity of the food, clothing and comforts that we really want, compared with the quantity it represented when the loan was made. The confusion that ensues is greatly enlarged by the Immense increase in the quantity and amounts of loans, due mainly to the war. Then In many countries there exists what Is called the rigidity of the wage structure, which being interpreted means the resistance of the wage earner to any change in the money rale o'f his wages, although that rate may mean something very different from what it did when the rate was fixed. Wo want a standard of value that will not vary, or vary only within narrow limits, but although we want it there is no consensus of opinion whore it is to be found. Gold is the best standard of value that has yet been devised, and gold is very Imperfect, as nineteenth century experience will show us. It was worked then by rule of thumb methods, but it did work; now these methods have been abandoned and we are all in trouble. One of those methods or rules was that a country with money to spare must be prepared to lend it and to'take payment of the interest in goods. But here the- vested Interests created by protection object, and we have a man like President Hoover advocating the payment of the debts due to the United States, and at the same time objecting to the only method by whioh they can be paid. He is as inconsistent as the trade unionist who votes for the protection that lowers the value of his wages. It is very doubtful if we shall ever see the gold standard in general use again. Even those who advocate It say we must wait until its proper use is understood; that is until the United States and France cease to apply protection. Even if another standard be adopted the protectionist countries will make it unworkable. If the world decides to abandon international trade, it must resign itself to a much lower slandard of life, yet if it adheres to protection it makes international trade well-nigh impossible.