The Waikato Times. WEDNESDAY. MAY 17, 1933. RESTRICTION AND COMMODITY PRICES.

Waikato Times, Volume 113, Issue 18947, 17 May 1933, Page 6

The Waikato Times. WEDNESDAY. MAY 17, 1933. RESTRICTION AND COMMODITY PRICES.

The latest developments in the restriction proposals, which are being: sponsored by the British Minister of AgneultE. Elliot, reveal a tendency to defeat their own ends. Major Elhot by his actions during the past few weeks has proc an ardent supporter of the quota and res no 10 , , grave risk that the ertent to which he would interfere m the normal course of marketing may be fraught with danger.

Side by side with his commendable aim to improve oommoddy prices is \t clear intention to foster in every way h development of British agricnlture. We have alrea y the futility of Britain attempting to tion methods which are successfully p . ■Rritish dairv tralia and Denmark, and we have suggested industry seek expansion m the provision of 1 ’ . tensivo eggs. In such a field much can be accomplished & n intensive campaign to increase the consumption of fresh milk and would probably achieve remarkable success.

However, Major Elliot has not so far shown himself capable of thinking beyond the quota. Bach difficulty which^has: arisen, nr no matter what commodity, has found him seeking to apply in order to keep up prices. But he has made no effort to apply any other curative methods. His assumption that the bf} fresh milk and of dairy produce is fixed at a rigid max - the easy way out of a dilemma, but it is not necessarily sound.

The effect of this recourse to quotas is seen in the market for standard-grade Danish bacon. As a result of quota restrictions price has risen from 52s per cwt to 83s, instead of remaining at about 70s, or 755, as was intended by the Minister. Confronted now with the fear that prices may rise so high as to .drive the consumers to seek a cheaper substitute for bacon, the Minister is appioach g the exporting countries with a view to obtammg a temporary - crease of supplies. Opponents of restriction will. find it easy to draw from this a very strong argument against the quota.

It' will' be competent for them to suggest that interference in trade, although achieving a rise in prices, involves the Government in a continuance of intervention, and imposes upon the produce state of uncertainty from time to time regarding the quality of goods it may be prudent for him to produce. Whether such a state of affairs, even though accompanied by higher prices, is beneficial to, the producing industry is very much open to doubt.

In view of the steady rise which is being shown in commodity prices, it would appear that patience is the wiser course.. At any rate intervention has not shown itself to be an outstanding success and there is strong likelihood that it has come too la e. Hadl the quota been applied a year ago it may have successfully served its purpose, and been, discarded by now. Applied at the present tune, ft would appdar more likely to prejudice than to assist the desired recovery .in prices.