COST OF LIVING

Dominion, Volume 10, Issue 3118, 23 June 1917, Page 2

COST OF LIVING

SOME OF THE CAUSES OP INCREASE NEED FOR NATIONAL ECONOMY A lew remarks on Iho cost of living wero njflde by tho chart-man of directors or the Dnnk of Now Zealand (Mr. Harold Beauchump) at tho meeting of shareholders _in this institution yesterday. "Tho cost of liviug is steadily rising fcnd is pressing with unusual severity upon those with limited salaries," said Mr. Beauchanip. "The purchasing'power of the sovereign now, as compared with 1911, is greatly reduced. Tho New Zealand Government has taken steps to meet tho difficulty, and has succeeded to sonio oxtent. For instance, sugar is cheaper in Aew Zealand than perhaps anywhere else in the world, and this is duo to the ■reasonable spirit iu which tho Colonial bugar Refining Company—practically our sole supplier—met the Government on the question of supplies and prices. "Tho increased cost of living- is a subject upon which wo have heard a good deal emce tho commencement of this world-wide war, but there appears to be considerable misconception, especially in this Dominion, with regard to the causes of it Many people seem to think that prices of commodities have been raised by wholesale and retail merchants, through combination or otherwise, for purposes of profit and without any justification. In this connection one has to remember that in respect to many articles wo use and consume we are dependent upon supplies from overseas. Now, the majority of these lines havo enhanced enormously in price at port of shipment, and, before reaching this country, there Jiave to bo added thereto freight (calculated at not less than three limes the .tfate ruling before the war), war risk at from JEI Is. to .£lO per cent., higher rates of exchange and duty, and other charges. In support of the statement as to ennancement in prime cost, a table published in the 'Economist' of April 7, 1917, dealing with many essential commodities shows that, starting with a basis rate of 100 per cent, as an average in 1901-5, the percentage figure has risen during the war from 116.6 to 240.9. As regards New Zealand produce and goods manufactured in this country, it must be borne in mind that prices of tho former are largely, if not wholly, determined by the values ruling- in London, or in tho other marlets to which our produce may be consigned, or by the prices paid by our Government on behalf of the Imperial Government—whilst the latter are affected by increase in cost of raw materials, higher wages, etc. Faced with, these facts, it must be apparent that it is quite useless for a section of the community to urge the Government, as was done recently, to take steps to force traders and producers to sell at pre-war prices. In most cases it would be, for the reasons stated, an utter impossibility to do so. "Whilst much, prominence has been given to this question of increase in the cost of living, we rarely, if evor, see si suggestion that, to meet the additional burdens that are being cast on us by tie war-, there ehould be any reduction in the standard of living. If the 'standard' were modified to meet the altered conditions, people could face the increased cost of living with much greater equanimity and without'undue hardship to themselves. "In spite of the increased cost of living and other seeming handicaps, tho spending power of tho community appears to bein no way restricted. The need for national ecouorny is boing constantly proclaimed, but, unfortunately, to all appearances, is bsing, as constantly, largely ignored. Extravagance is rife," and the lavish expenditure which is being made on dress and pleasure at the present time is, to say the least of it, very regrettable. I attribute it to the fact that the baleful effects of tho war have hardly reached our shores; that so far tho consequence upon us, financially, has been entirely beneficial—the prices of our primary products having been forced, by war conditions, up to loyels aiever before dreamt of —and that, with this unexampled prosperity surroundings them, tho majority of our people are -prono to close-their eyes to the grim and portentous happenings on the other side of the world.

"With all the''requisites of solf-huhil-genco lying ready to our hands, it requires the exorcise of some restraint to bo other than self-indulgent. But the time has come for a halt, and for taking serious stock of tho ]>osition. The demand for a more economical code of Jiving in all parts of the British Empire is becom, ing clearer and more insistent, and I ap. prehend that, if the war continues, the call for greater economy iu tho national outlay will ere long be proclaimed in ways that will necessitate a more genuine response than has so far been given to the appeal."