THE COST OF LIVING.

Pukekohe & Waiuku Times, Volume 6, Issue 290, 6 July 1917, Page 4 (Supplement)

THE COST OF LIVING.

It did not need the chairman of diroeiois of the Bank of New Zealand :o tell the r.verage citizen that the co.-t of living is steadily rising, or that it i., pressing with unusual severity upon those with limited salaries. Neverthe-le.-s, in the course of his insti uctivc ad. dress to the shareholders of the Bank a!, yesterday's annual meeting, Mr. Beauchamp had a good deal that was interesting to say concerning the subject. There appears to be considerable misconception with regard to the causes making for increased prices. Many people seem to think that prices of commodities have been raised by wholesale and retail merchants, through combination or othrwi.se, for purposes of profit end without any justification. .Mi-. Bcauchamp, however, reminds us that in this connection one has to remember that in respect to many articles we use and consume, wc are dependent upon supplies from overseas. "The majority of thc«o lines.'" he proceeds 'have enhanced enormously in price at port of shipment, and, before reaching this country, there have to be added thereto freight (calculated at not than three times the rate ruling before the war), war risk at from £1 Is. to £lO per cent., higher rates of exchange and duty, and other charge*. Tn support of the statement as to enhance. ment in prime cost, a table published in the 'Economist' of 7th April, 1017, dealing with many essential commodities shows that, starting with a basis late of 100 per cent, as an average in 1901-5. the percentage figure has during the war from 11G.G to 240.9. As regards New Zealand produce and goods manufactuted in this country, it must be borne in mind tint prices of the former are largely, ft not wholiv, determined by the values ruling in Luudon, or in the other mar. kets to which our produce may be consigned, or by the price- paid by our Government on behalf of the Imperial Government; whilst the latter are effected by the increase in the cost of raw materials, higher wages, etc. Faced with tluse facts, it must be apparent that it is quite useless for a section of the community to urge the Government, as was recently done, to tak-3 steps to force traders and piodueers to sell ;t pre-war prices. In nrost cases it would be, for the reasons stated, an utter impossibility to do so. Whilst much prominence has been given to this question of the increase in the cost of living, we rarely, if ever, see a suggost'ou that, to meet the additional burdens that are being cast on us hy the war, there should be any reduction in the standard of living. If the 'standard' were modified to meet the altered conditions, people could face the increased cost of living with much great, er equanimity, and without undue hardship to themselves."