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Hokitika Guardian, 23 December 1919, Page 2

It has been mentioned in the foregoing how the economic situation will be (in faejt, is, already) affected by the rate of exchange. On this subject a Toronto newspaper of a late date, refers to the aspect mentioned and goes on to remark that the far-reaching effect of foreign exchange is seen in the statement from London that the price of tea is being forced up by the increased value of the Indian rupee. With the price of silver still going up, the situation is intensified, and affects not only tea, but rubber also. The fixed rate for the rupee in Council draft on India has been raised during the past six months from IS 6d; to .Is Bd, and finally to Is lOd, while recently the price of silver has been so high that the intrinsic value of the coined rupee has beep over Is lid, though the Indian Council has still maintained its Is 10d rate. There . were fears, however, that the rate would have to be put up 'to 2s, and might eventually go higher. The result has been that the rise In exchange has increased the c-ost of tea and other tropical produce landed in Engl and to the extent of about 16 per cent. This is considered a- severe handicap to the English consumer. The principal reason given for the rise was the unprecedented prosperity of the native population in India and the Far East generally, due directly to the war. The same incidental result of the war may be seen in the position of the English pound at a discount in a number of neutral countries, as well as the United States, which enjoyed prosperity, with few of the disadvantages of the belligerents, during the war period. These countries include Holand, Spain, and Sweden, while even in Greece and Portugal the pound is under par.

The umber industry is of very great importance to Ny" Zealand and particularly to this immediate neighbourhood. What is happening ,to other poultries industrially plight 'be -due fate .or fortune ii> furij, and so if is instructive to yead (he latent report on the Canadian timber piaykpt. 4- Dominion newspaper reports that this year the lumber out will be small, and attributes the position to the cost of jiyipg and the high wages. This is how the Toronto Globe of October last smn s up the position »n fhy Jarid of great forests: —“The cost of labor, feod and yafjous other requirements in the lumber iiMjuatry has reached such a pitch that despite the higher prices for timber, the mills expect this year's cut to f,d| fny below that of last year, .which was again very much smaller than that of 1917-18. The average wage for the lumberjack is now around sllO, plus board, per month. This compares with around S3O in 1913. These conditions see to be Dominion-wide, though proto ably felt more in Ontario find Quebec than in British Columbia. On the coast there is an increasing amount of coolie •labor applying at the camps. These Men do '!nut xece'ive as high wages as ,tlie Ontario lumber.jnuky, juft .their spaie is considerably higher blia'u it was a year ago, owing .to the granted during the spring, when they

went on striky. The demand for lumber is said to be greater now than it Was jin the sunrtuer. United Slates buyers have appeared in practically uli the Canadian lumber districts endeavouring to secure supplies. It is said thajb really first-class stuff is now entirely off jfcbe market, excepting comparatively green stock. Local dealers say ijist )f supply and demand regulates prices in 1920 the cost of building operations, so far as jgmfypr is pypeerned, will be higher than at pre- | sent, filling)es are very scarce, and . laths are also bard ip obtain. I