MORE MONEY, LESS SOUP.

Hawke's Bay Herald-Tribune, Issue 5, 21 January 1937, Page 6

MORE MONEY, LESS SOUP.

' 'There's more money about," is a remark oommon in trade circles at tke present time. With sometMng like an 'additional £12,000,000 coming into tke country tkis year for wool there should be an increase in spending. This is a handsome bonus of real money with which our Labour politicians can exploit their purchasing-power theories. But the fruits of an inflationary policy designed to increase purchasing power by governmental spending and by driving wages up has already become apparent in the higher prices that have to be paid. The currencydepreciation policy started by the previous Government is being pursued by Mr. Savage and his merry men with a gay disregard for election promises to lower the exchange rate. An example of the effect of currency depreciation is given in the "Waikato Times" by a correspondent. "It is liittle straws." ho writes, "that show the direetion of the wind, so the following example of the effects of our inflationary policy should be instructive. A couple of . years ago when living in a suburb of Auckland, I used, when down Queen Street, to go to a certain restaurant where I obtained a bowl of soup^ ,four fingers of toast, and a cup of coffee for sevenpence. On Monday, January 14, 1937, in the same restaurant^ I gave the same order, received 25 per cent. less soup, and a docket for l/l. This represents an advance of 86 per' cent., negleeting the diminution in the quantity of soup. " Yes, there is more money about, but somehow a pound does not seem to last as long as it used to. But then Mr. Savage does not want money to last long.