4 JULY 1931, Page 7

Butter and Wool The dispute between Canada and New Zealand

on the subject of butter forms an unhappy contrast to the Empire Wool Conference in Melbourne. The latter is attempting to improve marketing arrangements and come to better arrangements with manufacturers, on behalf of the growers of wool, a crop of which the Empire produces almost half the world's supply. It is an example of the right sort of Empire rationalization. Canada and New Zealand, on the other hand, appear to have reached a deadlock. Canada has practically excluded New Zealand butter, and New Zealand has raised almost all her duties ,against Canada. The cause of The dispute is said to lie in the fact that the Canadian farmers who forsook dairy farming in their prosperity have now been forced back to it by the slump, and want their market given back to them. However that may be, it is a conspicuous example of the harm done by economic nationalism and tariffs.