RELATED TOPICS 277 



existing excitement at the anticipated shortage was 

 intensified by its action, which at times tended to promote 

 a panic. 



But not only was hesitation responsible for failure. 

 The conditions of marketing were such that rigid 

 administration of the law was impossible, and the 

 openings for fraud and evasion were at a maximum. 

 Moreover, the Government trusted to the integrity of 

 the dealers themselves, and made no attempt to enforce 

 the law. The natural consequence was almost universal 

 breaking of the law. The farmers took the highest price 

 they could get, while the millers desired high prices so 

 that the price of flour would be kept up, and they would 

 be able to secure large profits on their stocks of wheat 

 which they had purchased at 3s. 6d. per bushel, and 

 under, before August. 



By selling equal quantities of wheat and oats at the 

 same time, it was an easy matter to evade the regulations. 

 Nominally, the wheat was sold at the regulation price, 

 but by selling the oats at a figure much in excess of 

 their market value, an illicit addition was made to the 

 price of wheat. Then, again, in selling wheat, exorbitant 

 figures were paid for the sacks. The custom is to allow 

 Id. lower than cost price for these; that is, the miller 

 pays 7d. or 8d. for each sack, and he afterwards has 

 the use of an almost new sack in which to distribute 

 his flour. By selling the sacks at prices ranging from 

 2s. to 3s. each the farmer easily evaded the law, and 

 as much as 9d. or lOd. per bushel was added to the 

 regulation price of wheat, for each sack contains only 

 3J bushels. 



Furthermore, secret dealings were made with very 

 little trouble, so that the law was evaded on all sides. 

 In short, the wheat industry, as organised in New 

 Zealand, was the last one in which price control should 

 have been attempted. It was easy to fix a "reasonable'' 



