ECONOMY NEEDED

Dominion, Volume 11, Issue 2, 27 September 1917, Page 5

ECONOMY NEEDED

NO PANACEA FOB INCREASED >... PRICES. . "It is not Only those engaged in farming pursuits who have benefited by the jftesults of war prices," says the Board (of Trade in its annual report. "Probably 90 per cent, of the population has •benefited to some extent, though not always to the same extent, in the general ..prosperity that has resulted, even after allowing for depreciation in..the purchasing, power of the sovereign. Evidence of this is found in the increasred fums put through the totalisator and -in the enormous sums spent on luxurifj fand amusements. The returns of the savings banks show that at the end of ;,the calendar year 19U there were 483,202 •depositors, and these had increased at the end of 1916 to 645,117 depositors; "while at the end of 1914 the excess of deposits over withdrawals amounted to •£1,301,305, and in 1916 to .£2,618,989, or 3flo per cent, increase in the short space ■oi two years. . "The board frankly confesses it has lot found during its investigations and inquiries a panacea for the increased cost ©f living. The fixation of -prices, although force of circumstances has com-, -polled almost every nation in the world ,to adopt this course, is fraught with ißianyand obvious dangers. Tho conditions in New Zealand do not yet warrant a general resort to ; so drastic a remedy. (True, the board has recommended the fixation of prices of certain commodities nnd tho Government has adopted its recommendations, but loss and hardships ihave- in 6ome instances been occasioned ■thereby, and these have not always fallen wn those best able to bear them. It is admitted, however, that the assistance and work of the board has served as a check on combinations that might otherwise have taken advantage of their/ocomomio position to 'exploit* the nublic, meaning thereby extracting an illegitimate gain.

"The usefulness of the board in this 'direction would bo greatly enhanced if power were conferred on it by legislation making it obligatory on purveyors of goods and services (to be specified Jrom time to time by tho board) to givo the board at least seven days' notice of any intended increase in price and the Teaeons for such increase. Such reasons could then be considered, and if they. Svere found to be unsatisfactory the pro[posed increase could' bo disallowed, tho present legislation being sufficient to deal •with any trader insisting on an increase after such a decision had been come to.

I "An increase in price may be necessary as the result of any one of a number of causes, e.g., a shortage in supplies, ;iariso in freights, increased cost of lahour; but during war periods a trader should not he allowed to increase his price more than is necessary to recoup Jiini for the ojtra costjyitailed, as suffering may be caused l#£«re competition has restored the balance between supply anu demand and eliminated undue profits. iWe believe that with the loyal co-opera-tion of the .commercial oommuniiy ths exercise of the powers hereby sought •would give confidence to tho great mass of the people that 'exploitation' and 'profiteering' would be effectively ■Checked. ' ■ < ■ ■ ■. ...

"In conclusion, the board would urge the imperative necessity that now exists for increased production, for rigid economy, for the curtailment of expenditure on luxuries, and for the elimination of iwaste." '