Talk Of Price

Control In Rabaul

Rabaul, Dec. 15.

PUBLICATION by the South Pacific Post of a recent increase in the price of local timber brought Rabaul’s attention to the laxity of price control here.

The new price ranges are from 122/6 per hundred super feet to 135/- per hundred for selected timber. The former price was 106/6.

For the past twelve months New Britain sawmillers have been charging from 140/- to 160/- per hundred super for their timber. To fall in line with the latest gazetted prices they would have to reduce their prices substantially.

They claim that, to fall in line with Moresby’s edict, would be financial suicide. And perhaps they are right. The onus is on the Ad ministration to investigate their claim.

Differences in the cost of fuel, im ported labour, and freight can add substantially to the cost of produc tion. The making and mainten

ance of roads in areas which are soggy swamps during the wet season are very costly items.

A ruling which suits both the Administration and the millers should be made soon. Otherwise, if the millers withhold their produce rather than sell at a loss, Rabaul’s rebuilding programme will be at a standstill.

A tour around the local stores would convince anyone that Rabaul needs a Prices Officer. The anomaly of identical articles selling at dif ferent prices, within a range of a few hundred yards, would suffice to prove that point. Chinese souvenir and gift stores whose profit margins range from 50 per cent to 150 per cent.—depending on whether one is a local or a tourist—could be first on the list of the industry.

And Some Editorial

Comment

WITH all respect for our corre spondent and the Rabaul in terests for whom he speaks, we must point out that he pro mulgates an economic absurdity.

The answer to “profiteering”—

always provided that supply co ditions are normal —is less, not mo price control.

If merchants make excessive pr fits by charging prices beyond t limit justified by custom a practice, other merchants inev ably will come in to share the hon and will force prices down to t correct level.

Government control of prices justified only when supply cam take care of demand, so t h merchants handling an essent article can exploit buyers. Wh there are insufficient supplies, a other merchants cannot enter t picture, the law of supply and c mand is out; competition cam come in to challenge the exploite: and the public, being ruthlessly e ploited, must be protected either (a) price control or (b) cutting t throats of greedy and unscrupulc merchants.

As the former method is the 1 messy of the two, it usually is t one adopted; but it, in turn, leg to economic evils—one of wh: is the black market, and anotl the discouragement of privi enterprise. (We know that we hs presented the Communist, at t point, with build-up for a cou of ready-made arguments; but spj does not allow us to follow 1 fascinating discussion any furthe