768 TRANSACTIONS Ob' SECTION M. 



complicated ; the innumerable cog-wheels are hidden while the machine i8 

 running normally, but every single one of these becomes very obvious when 

 you attempt to introduce a crowbar. With one or two exceptions the purveyors 

 of food to the nation were left to conduct their business without official inter- 

 ference, though the Board of Trade took steps to ascertain what were the 

 retail prices justified by the wholesale conditions and to disseminate the infor- 

 mation for the protection of consumers against unreasonable charges. 



One measure of a drastic and widespread nature was adopted. The exporta- 

 tion of a large number of commodities was prohibited. This was done for two 

 reasons : (1) to conserve stocks in this country, and (2) to prevent goods from 

 reaching the enemy. The latter object could be attained only very partially by 

 this method so long as any sources of supply other than the ports of the 

 United Kingdom were open to the enemy or to adjoining neutral countries. The 

 former object — with which we are now only concerned — was on the whole 

 achieved. The Board of Agriculture, concerned for the maintenance of our 

 flocks and herds, at once secured a general prohibition of the exportation of all 

 kinds of feeding-stuffs for animals. Many kinds of food-stuffs were at once 

 included and later additions were made, so that for a long time past nearly 

 all kinds of food have been included, though in some cases the prohibition does 

 not apply to the British Empire or to our Allies. The exportation of ferti- 

 lisers, agricultural seeds, binder twine, and certain other commodities more or 

 less directly connected with the conservation of our food supplies, was also 

 prohibited, so that generally it may be said that the outlet for any food in the 

 country was imder effective control. This is not the time or place to discuss 

 the reasons why in some instances limited quantities of certain articles were 

 allowed to escape under licence. It is only necessary to remark that in all such 

 cases there were cogent reasons in the national interest for the action taken. 



Direct Government intervention in regard to food supplies was limited to 

 three commodities — sugar, meat, and -wheat. In the case of sugar the whole 

 business of supply was taken over by the Government — a huge undertaking but 

 administratively a comparatively simple one, owing to the fact there are no 

 home-grown supplies. Intervention in the meat trade was necessitated by the 

 fact that the enormous demands of the Allied armies had to be met by drafts 

 upon one particular kind of meat and mainly from one particular source. The 

 Board of Trade co-operated with the War Office, and a scheme was evolved 

 whereby a very large part of the output of meat from South America and 

 Australia comes under Government control. 



As regards wheat, the intervention of the Government took two forms. The 

 scheme whereby the importation of wheat from India was undertaken by the 

 British Government, in co-operation with the Indian Government, arose 

 primarily from conditions in India rather than from conditions in the United 

 Kingdom, although it is hoped and believed that the results will prove to be 

 mutually advantageous. Other than this the intervention of the Government 

 in regard to wheat was devised as an insurance against the risk of interruption 

 of normal supplies, its main object being to prevent the stocks of wheat in the 

 country from falling to a dangerous level at a time when the home crop would 

 be practically exhausted. When the home crop is just harvested there are ample 

 reserves in the country for some months, and, as the United States and Canslda 

 are at the same time selling freely, stocks held by the trade are usually high. 

 While home-grown wheat remains on the farms it is practically an additional 

 reserve supplementary to the commercial reserves. When it leaves the farmers' 

 hands, even although it may not actually go into consumption, it becomes part 

 of the commercial reserve. This reserve in the nature of business tends to be 

 constant, but fluctuates within rather wide limits under the influence of market 

 conditions. If the price of wheat rises substantially and the capital repre- 

 sented by a given quantity increases, there is a natural tendency to reduce 

 stocks. If also there is any indication of a falling market ahead, whether from 

 favourable crop prospects or the release of supplies now held off the market for 

 any reason, a prudent trader reduces his stocks to the smallest quantity on 

 which lie can keep his business running. So long as shipments reach this 

 country, as in normal times they do, with, as a member of the Baltic once 

 expressed it to me, ' the regularity of buses running down Cheapside/ the 



