THE REDUCTION OF FOOD PRICES. tTo rue EDITOR or THE
" Seeevaree."1 Ste,—We have read with entire approval your articles en Profiteering " and the effect of compulsory lowering of food pi ices. We believe, with you, that the arbitrary reduction of prices will defeat tine efforts of tine Food Controller to prevent waste and reduce consumption,- and we are quite sure. there will be other effects therefrom that are not anticipated by those who are running the unreasoning campaign against what they call "profiteering." We can speak from experience. We, like many others, in 1910 were buying and importing large quantities of food a few weeks in advance of our anticipated requirements. This was necessary owing to the slowness of railway transit and the uncertainty of arrivals from overseas. We felt we were acting in the interest of the country by holding large stocks; we knew they would all be wanted. We felt also that we were taking great risks in buying at the prices we were compelled to pay. The result, however, was that our stock-taking in February last showed an increase in the year's profits, and we are paying a considerable sum in Excess Profits Tax. Our stock taken in February, end the goods we had bought to arrive, were bought at about the highest point of the markets. Since then various Orders have been made by the Food Controller, lowering the retail prices of many of tine articles we had in stock and had bought to arrive. We are consequently selling these articles at a very considerable loss. There is every appearance at present that next year see may have to ask for a refund of the whole or part of the amount we are paying as Excess Profits Tax. There most be thousands of cases similar to our own. We agree that war profits should, as far as they can equitably be collected, go into the Treasury; but the savings effected by consumers by the compulsory- lowering of prices will be very largely dissipated, and very little of them find their way into the National Treasury. If we had the responsibility of the Chancellor of the Exchequer, we should be very anxious as to the effect of the Food Controller's Orders restricting prices on next year's Budget.—We are, Sir, &c.,
MERCHANTS.
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