PRICE LEVELS.

Dominion, Volume 6, Issue 1647, 14 January 1913, Page 8

PRICE LEVELS.

COMPARATIVE FIGURES, A PAST RISING WAVE.

(By TelegTaph.—Special Correspondent.) Christchurch, January 13. Doctor M'llraith,' whose previous work on the subject is well known, contributes an article to tho "Press" on the upward movement of prices in 1912. Dr. M'llraith says: The most marked commercial characteristic of the year 1912 has been the continued upward movement in prices. The general level of prices is now about 17 per cent higher than the average pricelevel of the decade 1890-1899. The following figures show recent price movements: 1890-1899 100 1910 109 1911 ; 112 1912 117 The rise last year was thus nearly i per cent. To find a similar high-price level we must go back to the year 1883. An analysis of tho different groups of commodities affords interesting results. Tho farm products:— 1890-1899 '. 100 1910 125 1911 i.. 128 1912 133 A remarkable, rise, but look at it thus: Cereal Animal products, products. 1890-1899 :. 100 100 , ■ 1910 110 135 V 1911 119 131 - 1912 113 W Truly this is the day, not of the golden corn, but of the golden butter and the golden fleece. The worship of the golden calf has been reviewed in a most lucrative form. Foods have appreciated thus: 1890-1899 "'' 100 ■ 1911 108 1912 113 Products other than farm products have varied thus: 1890-1899 ...; 100 1910 104 1911 168 1912 ; 11l

, Certainly an ominous rise, but only 25 per cent of that which took place in nnir mal products in a similar period. The whole commercial world seems to be riding on a wave of fast-rising prices. Here are some comparative figures:— ■ 1890-1899 1910 1911 . 1912 New Zealand 100 109 112 117 U.S.A 100 ' 132 129 —. England 100 118 121 -

. This state of affairs cannot last without creating grave disturbances in tho industrial and social world. Whilo producers generally must rejoice, those in receipt of wages, salaries, or fixed incomes will probably grow increasingly restive as the continuous rise in the cost of living steadily decreases their, purchasing power, since a rise in prices of world-wide extent l is not due to the exertions of any particular class. The great problem is to devise some method whereby the advnntage or otherwise of such a rise will be distributed'equally ovor all industrial classes. The world's gold production on which the .volume of credit and hence tho general price-level so largely depends, is of the greatest interest. -It has increased thus: ' 1890-1899 „ 100 1905 128 1910 , 117 ,1911 " .149 Prom this it would appear that tho wave of rising prices has not yet reached its crest.