266 WHEAT PRODUCTION IN NEW ZEALAND 



procurable at reduced prices, while the labour market 

 would no longer present the difficulties it does now.* 



4. Public Control of Prices. 



(a) Wheat Prices during the War. A general 

 scarcity in local supplies of wheat in August of 1914 

 soon began to attract the attention of the public of 

 New Zealand. At the same time people were appre- 

 hensive of disaster to the world's wheat supply on 

 account of the outbreak of War on a colossal scale. 

 Moreover, a serious drought in Australia promised to 

 ruin the prospects of a good harvest just at a time when 

 it was anticipated that the European demand for wheat 

 would be of greater magnitude than previously, on 

 account of the vast numbers employed, both directly 

 and indirectly, in "unproductive" works. Reassuring 

 statements from the millers and the Prime Minister to 

 the effect that sufficient supplies were available within 

 the country for home consumption until the coming 

 harvest, tended at first to assuage public apprehension, 

 but a steadily rising price soon undermined this 

 optimism, and at the close of August the outlook was 

 gloomy. By August 26th wheat was selling at 5s. per 

 bushel, and flour at 12 per ton, a rise of 25 per cent, 

 and 20 per cent, respectively since the beginning of the 

 month. 



This engendered a feeling that exploitation was preva- 

 lent, and more especially were the millers and merchants 

 suspected of it. Reference was made to the matter in 

 Parliament in a vigorous speech by the Leader of the 

 Opposition, and on August 28th a deputation from the 

 South waited upon the Prime Minister praying that 

 the Regulation of Trade and Commerce Act be applied 



*It should be stated that for many years farmers generally 

 have been staunch supporters of the free trade policy, and in 

 spite of the attitude of many over the wheat duties, there is 

 reason to believe that they still adhere strongly to this policy. 



