THE RISE IN LIVING

Dominion, Volume 8, Issue 2452, 4 May 1915, Page 10

THE RISE IN LIVING

ECONOMISTS" FIGURES

UP'NINE PER CENT SINCE

THE. WAR

DOMINION PRICES

Evidence of general interest waß given in the Court of Arbitration by Dr. M'lllwraith, M.A., of Christchurch, who makes a study of the cost of living. { Dr. M'lllwraith said that the wholesale prices in New Zealand last year were lower than in 1875, and at present, under war conditions, they were still 5. per cent, below the 1875 levels. The fact was that in about 1876 wholesale prices began to fall. Wholesale and retail prices did not run along parallel lines. The wholesale prices ran far more easily than the retail prices, which latter seemed to meet much the more friction. Always at the end of a long period ,of prosperous times the cost, of living (the retail 'prices) increased faster than the wholesale prices, but at a. time like the present (under stress of war) wholesale prices seemed to increase much faster than retail prices. If there was any reason to be assigned for that, he should say that the explanation was that'after a. prosperous run people generally had a lot 'of money to spend and did hot criticise every movement in retail prices, while at a time-like, the present the retailer was closely'criticised,'and, also, he was much more easily got at by the public than the wholesaler Was. The conclusion ho had come, to was that it was far easier for wholesale prices than for retail,prices to rise at a time like the present.

Olio of the first things attacked In time of stress, he continued, was rent. lAs far ai he could gather, a recent Teduction ill rente had been made which averaged 10 per cent. In somo cases thu reductions were as high as 25 cer cent. Taking a recent period in whi'h the "cost of living rose by three" por cent., the wholesale prices rose two per cent. About 1912 or 1913 the boom reached its crest, and prices fell considerably until July of. last year. For this no explanation had been given. The London "Economist" had said that if . it had not been for the w?,r wholeBale prices would have been the lowest for-many years. r The increase in the eostof living since 'August last had been about 9 per cent. Since the war the .wholesale prices had increased 20 per oent.—twice as fast as the cost of living. His Honour Judge Stringer: That means that the retailers are making lesser profits than they -were making before.

Dr. M'Hlwraith: It looks like that. What has been the position in England? Dr. M'Hlwraith was asked.

In England, he answered, prices declined during the year until July, but since then there had been a rise ofabout 10 per cent.—up to the end of December. The rise there had been chiefly on foodstuffs and chemicals, and the;foodstuffs affected had been principally cereals. In New Zealand the rise' had been chiefly in farm products. Farm produce was now as high as in 1868. Before 'war broke out New Zealand had reached a level it had Dot attained since 1879. Dr. M'Hlwraith was questioned as to the: purchasing powers of £1 at stated periods. He said that the purchasing poller of the sovereign had decreased by about 7 per cent, since ISOB. Mr. E. J. Carey (union representative) : Are you aware that the rents of some of the big houses have been heavily;decreased through the houses not being irentable? That would considerably increase the average rate of decrease in rents. His Honour : What is the explanation of the decrease in rents ? Dr. M'Hlwraith said that there were various reasons. People would not pay the rents, and in some cases people complained that they_ should not pay the same rents in war timei as in days of peace, though they were, perhaps, just asi prosperous. Then owners were inclined to £et the feeling that hard times were coming,_ and did not wish their houses to lie idle. The decline began to become evident shortly after the strike. People in arrears said they could not pay, and so on. Mr. Carey: . How do you arrive at your rent figures? Dr. M'Hlwraith replied that he had got them from land agencies in Auckland,'and that they covered several thousand houses.

Mr. Carey: They apply only to Auckland.

Dr. M'llhvraitli: Yes. His Honour: How do yon get at your wholesale prices? In two or three ways, answered- Dr. M'llhvraitli. For farm prices he relied on certain Christchurch newspapers, for groceries he took a Wellington threoTteekly journal, and so on.