ROUGH AND READY METHODS

Dominion, Volume 36, Issue 35, 5 November 1942, Page 4

ROUGH AND READY METHODS

The statement made by the Minister of Supply at Christchurch affords the first definite indication of the Government’s line of approach. to the problem of economic stabilization. The Canadian authorities took action in the first year of war before any marked movement in prices had occurred and, as_ one of their leaders said, “arrested a vicious spiral of prices before it started. Action following the recommendations of the representative stabilization con er - ence held here some two years ago would have had the same effect, but it was not talcen so that the problem has become more involved; the difficulties are now much greater. It is not advisable, even if it were possible, to attempt a general stabilization when things are out of balance, and the steps taken by the United States Government to secure a basis might well be. studied by those who must deal with the matter here. It has been stated that “the control of inflation is essentially a political rather than an economic matter; it turns on whether the will can be found to impose sufficient sacrifices of consumption on the public.” The policy adopted must, as far as possible, impose those sacrifices equitably and that is why Mr. Sullivan’s statement that there may be only rough justice in the plans under consideration will cause some apprehension. The Minister of Supply gave a supposititious example when he said: “If stabilization brings about the fixing of wages or farm prices at their present levels some sections of the community may feel that they are being made to contribute more toward stabilization than others.” The farming community will be interested in that statement. The prices for dairy produce were fixed before the outbreak of war and the basis has been unchanged until this season when an additional .61d. per lb. butterfat’is to be paid. Other payments, last season and this, were made merely to compensate for the costs incurred in the requested change-over by dairy-farmers fiom butter to cheese and the subsequent change-back. The same state of affairs has prevailed in connexion with meat prices, and if the premium for light prime lambs last year (obtained by adjusting prices for heavier grades) is taken into account prices to farmers have shown practically no change. The “same applies to wethers. Then, until the current season, prices for wool have been those fixed in 1939. It would be interesting to know why the Minister sought to associate in the public mind farm prices and wages, for their movements since the outbreak of war have been completely out of step. The two items in fact afford the most striking contrast that probably could be found, and the restoration of a reasonable balance between wages and' farm prices should surely precede plans for stabilization.