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Hokitika Guardian, 30 October 1929, Page 4

Tn a study of pre-war and post-war spending, as affecting the economic situation of Britain, the Westminster Bank Review, .contains a most interesting article which goes a long way to expain the apparent paradox of continuous industrial denress'on on the one hand, and increased popular spending on the other. It is not a case, however, of the population abandoning all habits of thrift and indulging in an orgv of extravagance, for statistics relating to the deposits in the Post Offi.ce Savings. Bank and the Trustees Savings Banks, the holding of National Savings Crtificntes,. and the amounts invested in building societies, completely refute this. Most people will agree with the authority mentioned that the primary influence in producing five state of affairs indicated is traceable to the definite change which came about during and since the ivar in the distribution of the national income. Due allowance oeing made for the fact that a given

.amount of money buys less to-day than in 1913, it would appeal" that the rich are now receiving less and the poor appreciably more, in terms* of money’s worth, tnan in pre-war days, {further, the we.girt of taxation now presses much more heavily, in proportion, on the recipients of larger than on those of smaller in. ohms. At the other end' of the scale super-tax has ■ men'made considerably more burdensome, wh.le death duties take a capital toll which progress.rely increases with the size or the estate, and, in the case of the largest fortunes, reaches most formidable dimensions. Blit \vhile the increase in spending by the people has been accompanied by an increase in the sums invested in various ways, there is no doubt, as was shown by the Cohvyn Committee that tne redistribution of the nat.onal m.omo has been accompanied by a de- . line in the volume of the national savings (relative to income) since 19i3. Expressed differently, the nation is spending a larger proportion of cadi year’s incomings than was the case before the war. It would appear that me condition of affairs at Home have their reflex here, and that in point of fact a like process is going on. People are now living in greater comfort, and with a desire for more enjoyment. Leisure is absorbed in pleasure, the enjoyment of which takes its toll of the weekly earnings Folk are not living as wisely—-that is as economically—but tliey are living well. This means a greater circulation of capital and does mean more business, but the capital not being as stable, the 1 people are net so well off. There is less being put by for the “rainy day” of unemployment or sickness, and -the masses are the poorer because of that. But .they are living a' gayer life while the noriev lasts. It is very doubtful, how-’ ever, if they are more contented.with all their joys.