BUTTER EXPORTS.

Waikato Times, Volume 113, Issue 18929, 26 April 1933, Page 2

BUTTER EXPORTS.

EFFECT OF RESTRICTION. PROFBBBOR BELBHAWB OPINION. MIGHT NOT INCREASE PRICES. AUCKLAND, Wednesday. Professor H. Belshaw, professor of economics at the Auckland University College, expressed the view that a restriction on Empire butter imported into the United Kingdom might not increase prices to the level anticipated. Imports of butter into Great Britain have increased over 30 per cent, since 1929, according to Professor Belshaw! The figures lie quotes are:

The alternative to a quota was said to be a price war. It might seem at first sight that a quota would be much preferable, but his view was that there were serious difficulties and some dangers to which the advocates of a quota had not attached sufficient importance, that the alternative was not necessarily a price war, and that even if it were, a price war might well be the lesser of two evils. Compaction of Margarine. In view of the competition of margarine, it was possible that the increase in gross receipts following the Introduction of a quota would be less than was hoped. In any case, the ■competition of margarine defined t|e limits within which a price rise was likely as the result of restrict'on. Secondly, a quota must be imposed on foreign butter, at least as large as that imposed on Empire butters, if it was to be effective. That would impair the goodwill of foreign buyers of British goods and might em J? ar E,as s at " tempts to reduce world tariffs. Thirdly, 3f the policy were successful In raising prices it would stimulate the increased production of butter in GleeBritain and the advantage to overseas producers would wholly or partial y disappear, Fourthly, a quota would probablv only delay, and not remove, the prospects of a price war. New Zealand would be in a stronger competitive position in a price war without. quota restrictions than with quota restrictions. Groat Practical Difficulties.

“ Restriction In the supply of farm products is faced with great practical difficulties,” said Professor Belshaw. *• ro far as I know, no attempt to control the output or the products of the soil lias, succeeded for long —with the possible exception of bananas. Professor Belshaw considers more might be achieved by reciprocal trad, agreements with other countries than hy quotas. The possibilities should 5 explored of (a) developing new markets; (b) developing the. local market in milk and crea “ l ’ < n proving marketing in (meat Britain, more especially with a view, to .co - peting more' effectlv ely against P a^ ls h butter in the North and the Midlands, . (d) developing a more diversified farmimr In dairvlng districts; and (e) im proving technical efficiency in farming SiS manufacture. No spwtarato taIprovements should be e r[icctPd from Ithese lie savs, but they might quite jwelMead to a gradual amelioration of 'position. ...

Gold as ft Unit.— "Correspondents tin our local paper will have it that gold must he used as an agreed-upon unit of values for International trade. What do you think?” was a question put to Mr N. M, Richmond at too Workers’ Educational Association s economics class on Monday evening. "Gold is not essential,' replied Mi Richmond. “The trouble is we are so much like children over this gold. ( Laughter.) “We could devise something much more convenient if we ; wished. Is t!;o gold advocate present?” queried the lecturer, amidst laughter. “No; he-lives In Rotorua," said half a dozen voltes, a reply which provoked renewed hilarity.

Empire. Foreign. Total Year. Tons. Tons. Tons. 1929 ... 187,250 319,850 1930 ... 187,600 341,100 1931 ... 203,550 403,550 1932 ... . . 221,500 201,000 433,500