DEARER MONEY.

Hokitika Guardian, 22 June 1920, Page 4

DEARER MONEY.

(Mercantile Gazette)

All over tlie world money is hardening, duo primarily to legitimate trade requirements and to the capital required for reconstruction purposes, nod in competition with others and mpst offer a higher rate to obtain what they want. This «ountry, in common with others, will meet, an advanced rate jn the near future. To us in New Zealand everything depends upon how far prices for pur products will recede.. That they will do so is cei-tain, as we are hampered with the difficulty of marketing, and that will roinain until tlie shipping control terminates, and as the market in England cannot rely upon continuous and regular supplies from tbe Dominion, buyers there look for other sources of supply, and our meat, butter, and cheese are liable to arrive at times when there is a scarcity or a plethora, as tlie case may be, and sellers must accept the consequences. Given a regular supply of shipping so that our products can arrive at schedule dates, we can look for a fairly fixed, but lower price rate, which can be ascertained prior to contracts being entered into hei'e.

But whether shipping conditions are improved or not, producers here must rest assured that the days of highly inflated pi'ices have gone. During the war the British Government, very I'ightlyV had but one end in view, to win; to that everything'was subordinated. and what they had to pay in order to attuin victory dicl not count, and for that reason they commandeered our products, but in doing so drove no niggardly bargain with those whose goods they requisitioned.: Now those days are over, the prices which have beep obtained no longer can be looked for.' Instead of a customer who would have our goods regardless of price, our, fanning exporters must sell in the open market, and take whatever prices arc obtainable. That our primary products will still find a market at payable rates is beyond any doubt as people must have food and clothing, and when land return 8 from the'present ficititious values, those who are engaged in fanning will find they will obtain, not perhapsas high returns as in the past/ but sufficiently satisfactory to make their investments perfectly sound. Two things will tend to bring back farming land to its correct value; land will produce less per acre than it did under the commandeer, and interest may harden; it may be also that a further adverse factor will intrude itself in the shape of wages and labour. The Finance Minister will find a substantial decrease in ,his income tax assessments, as, although the farmer has gained substantially through the increased value of hi s land not having been brought into account against him for taxation purposes, he has contributed his share of income tax. If he now obtains cUnjinished returns irom his business, his cheque s to the Income Tax Commissioner will be less for so long as she pays land'tax on the values of years ago. How the Treasurer intends to meet the deficit on income tax which must infallibly take place we do not know, or how he will be able to borrow* monev at 5 per cent, when the market is going against him remains to be seen. Money is like any other s commodity which depends upon the laws of supply and demand, and cannot he obtained un less the buyer will pay the mailxet rate.