THE GOLD OUTPUT.

Taranaki Daily News, Volume LVII, Issue 21, 15 June 1914, Page 2

THE GOLD OUTPUT.

THE COST OF LIVING. WILL A REDUCTION DECREASE IT? During the course of his remarks at the annual meeting of the Bank of New Zealand, the chairman said: Some authorities hold that a reduction in the gold output of the world would not be an altogether unmixed evil. They consider that the rise in the price of commodities,thafhas taken place during the last decade has been brought about by the concurrent large growth in the world's gold production. I cannot, however, myself see that the whole responsibility for hardened prices can be laid at the door of gold production. It probably has had some influence in the matter, but the principal reasons for the increase'must, I think, be sought for in other directions. The main factor, it seems to me, has been that of supply and demand following upon the higher standard of living that has gradually come into vogue during the last twenty years—the period throughout with the appreciation of value has been most marked. Population is increasing, and the producing section of the community is not increasing correspondingly, either in numbers or volume oE output.' . The producers are clamoring for and obtaining, higher pay and shorter hours of labor, whicli means that the product of their toil can be sold in the world's markets only at a price proportionately in advance of that at which it could be sold when the cost of production was less. Thus, every advantage that lr-or secures in its struggle for improvement of its conditions is won at the exnense of the community as a whole. The consumer must, in the end. pay for the cost of producing the articles consumed, and hence, in a largo measure, the increased cost of living, of which in these days ive hear so much.