248 WHEAT PRODUCTION IN NEW ZEALAND 
A President of the American Sugar Refining Company 
has well said that ‘‘The tariff is the mother of trusts,’’ 
and the maternal relationship is well exemplified in this 
case. Sheltered behind the import duty on flour, the 
monopoly could raise the price to a high figure, but not 
high enough to make imports from Australia profitable. 
On the other hand, the price of wheat could be lowered 
considerably, for London is our outside market, and 
provided that New Zealand prices are not lower than 
English prices by more than the cost of freight, insurance, 
interest, and other shipping and landing charges, export 
is relatively unprofitable.* With reduced prices the 
margin of cultivation would probably recede, and pro- 
duction would be limited to the higher grade lands, that 
is, so long as sufficient supplies were forthcoming to 
give the monopoly the maximum net revenue. But the 
problem if pursued in detail would lead us into a 
consideration of the relative positions of the various 
rural industries, and indeed, the whole question of the 
prosperity of the community in general. Enough has 
been said to show the nature, extent, and operation of 
the Flour Millers’ Association, the relation between it 
and the wheat industry, and the fruitful path of investi- 
gation it opens up. With the present regulation of 
prices by the Government, the problem of monopoly is 
out of the question. This, however, is no reason why it 
should not be discussed. After-war conditions may 
again be favourable to such a monopoly, and it is 
necessary to realise now what attention is likely to be 
given to trade combinations in the reconstruction policy, 
if any, after the War. 
*At the present time when wheat is relatively scarce, the 
miller is not in so fortunate a position. Itis an interesting 
subject of speculation, however, to reflect on the possibility of 
an agreement with the farmers in times of scarcity. 
