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Hokitika Guardian, 21 March 1932, Page 4

Our Commercial correspondent

’Wellington in a letter published on Thursday last, told our renders that the Economic Commission’s report had given the community a severe jolt, but it was necessary to arouse the pcopie to an appreciation of the position. Rightly he sav,s that low prices for produce have been the cause of all the complaints, but tbe average wage earner who may be complaining now about a “cut,” will be realising that produce is being retailed .at lower rates than a couple of years ago. All the staple commodities of life have been reduced in cost even in advance of the wages reduction. Butter, bread, beef, milk, and other lines of daily use are being retailed at lower pries, so' that the cry of reduced wages meaning less purchasing power does not hold ill fact. The thrifty housewife could give some enlightenment on the point, hut it he apparent that the. purchasing power of money earned is not reduced as much as many of the protestants attempt to lead people to believe. The producer must (and is) feeling tne drop in prices for \his commodities. The sheep farmer could a doleful tale unfold about the drop in his returns; ami the dairy farmer; and the stock raiser; eqaully all can show they have had a very heavy “cut” in their income. This lessened revenue for the general advantage of the country has caused a serious monetary stringency. Suggestions to try and mend the position by juggling with exchange or fixing prices have been made, but this could trend only to increase local retail prices, and then the fall in wages would he more marked in the actual result. The Government has acted wisely to leave exchange fixing alone. It was a sensible thing to do and it is strange that the Government took so long to arrive at it. It has become quite clear that any raising of the exchange rate would be purely an artificial movement, and tbe objections to it are overwhelming. Bosidies, Mr Stewart says London, intercuts undertook certain obligations on New Zealand’s behalf, and we cannot alter these arrangements without their consent. Trade is free to find its money value according to supply and demand, and with the Home market sound, prices should not srtg /further. But it is necessary to trim the financial sails-to tlio breeze, and by careful steering safely reach again the open sea of prosperity.