POST-WAR LEVEL OF PRICES.

Taihape Daily Times, Volume XI, Issue 3319, 24 October 1919, Page 7

POST-WAR LEVEL OF PRICES.

! Stabilisation of prices at new levels is approaching’ is the opinion expressed by the National Bank of, Commerce in New York. The bank says:-—---“Our jhigh prices are unquestionably the iproduct of of production and increase of consumption, as a result of the War, of those goods necessary to 5). peace—time life; of an increase. in the circul-ating," medium, and an.expansion_ of credit, and of the increased rnarg-Z11; of profit Ddcenlcd necessary to meet the ri:sk_:_,.ill— in amperiod of rising-._z pr-ices. The ‘era of eXtl‘avag':lllcc wliicfl has -follow» ‘ied the restrictions of war has also ybeea a factor in rising prices. \Vhen. the buying public semis not only willing but anxious to purchase, regardless of cost, prices resporui as a result of what appears to be El shortage of stocks when measured by demand. Prosperity IlaS_but one possible basis. That basis is production v<..lunle of btlsincss in tons an-1 dozens and léales is its true iueasure. There is now no fundamental I‘et:=;or. to dets-r productioll, and not until it has increased in its new peace time proportions can we rest in the :+-:wln':-..vl.';r;- that as far as its effects on our economic life are concerned, the war-has passed into history.’ To this end, every man and woman industrially or commercially employed must produce to capacity. Not only is production essential, but capital must ‘be accumulated at a rate rapid enough to offset the destruction which took place during the five years. The consuming public must recognise that it cannot continue indefinitely the scale of expenditure which followed a reaction from the self—denial of war, but that thrift for personal benefit. is as essential as thrift for one’s country. when every individual capable of gainful employment is producing to capacity and spending conse-.r—-vatively, our economic adjustment will abet complete.