THE STRESS OF WAR

Dominion, Volume 8, Issue 2446, 27 April 1915, Page 7

THE STRESS OF WAR

HIGH PRICES EXPLAINABLE

THERE IS NO DEPRESSION

, The Prime Minister stated his opinions of how well New Zealand is coming through the war stress to a reporter yesterday, and he also referred to various much-discussed topics concerning the cost of living. All the details , for the financial year ended on March 31 are not yet available," said Mr. Massey, "but this much I can say, that, considering the Empire is at war and that New Zealand is doing its part in connection with the war. the finances of this country are in a particularly satisfactory condition, and this is especially the case with the Consolidated Fund. The plain fact is that even with the extra expenditure on account of the war, which, by the way, we have scarcely felt yet, the country is wonderfully prosperous. Money for legitimate purposes is obtainable at (tor war times) very reasonable rates, and we hope before long to further relax the restrictions which were . placed on tlie lending Departments when war broke out.

"The exports are being well maintained, and with a sufficient number of insulated ships they could bo greatly increased. _ The deposits in the Post Office Savings Bank from month to month greatly oxoeed the withdrawals, and depression in the ordinary sense .or the .term is unknown. There is very little unemployment—probably not so much as at this, time last year—and wages aro as good S» ever they were. It ia true,, there has been, an increase,in the price of various commodities, but this is almost unavoidable in war time, especially in a war liie this, when 25 per cent, of the whole of the world's mercantile shipping is either being used for transport purposes or temporarily laid up. The result is that freights have gone up enormously, greatly increasing the prices of nearly all imported articles. The war and the shortage both in Australia and New Zealand ■ taken together are responsible for the increase in the price or wheat and flour.

"Then, in the case of our exports, our wool, our frozen meat, and dairy produce—and cheese especially—are ail in demand for the troops of the Allies, and prices have gone up accordingly: but '.it should be borne in mind that the cash which we receive for such products is the principal factor in keeping this country prospefous and maintaining a. demand for labour.. If our exports fell off seriously v in value we should have depression, scarcity of employment, and low wages. It is sometimes said that there is exploitation, that undue profits are being made by unscrupulous traders. I know much of this is political, but if there are such'cases (and I do not say there are not), then I hope that evidence on the subject will be forthcoming at the next sitting of the Regulation of Prices Comwhich will be held as soon as its President, Mr. Justice Stringer, can get through the work which he has in hand.

"The policy, of the Government haa been to keep tie business and industries of the country going to allow fair profits to be made, and to discourage, and, if possible, prevent exploitation, or anything in the way of unfair profits. I know perfectly well that there are wage-earners with families who are feeling the pinch, and who are compelled to practice economy in order to make ends meet, and our desire is to make things easier for such, people, but I have no hesitation in saying that, speaking generally, the conditions in New Zealand to-day will compare favourably with the conditions in. any other part of the Empire."-.