CURRENT TOPICS.

Taranaki Daily News, Volume LVII, Issue 244, 24 March 1915, Page 4

CURRENT TOPICS.

RISE IN FOOD PRICES. Some very interesting figures were recently given by Mr Asquitli regarding the increase in the cost of living in the United Kingdom. Wheat is 72 per cent dearer than it was last February, flour 75 per cent., British meat 6 per cent., foreigh meat 12 per cent!, sugar 72 per cent., and coal. 15 per cent. The general level of the retail food prices on February 1, as compared with those of last July, had increased by 24 per cent, in London, by 23 per cent, in other large towns, and by 20 per cent, in small towns and villages. So far as the Government can make out, there is very little evidence of a diminution on any important scale in the country's consumption. Mr Asquith actually came to tho conclusion that, if account were taken of the men in the new army, the working class was probably consuming more food per heaft than in the former year. The rise in the price of wheat was attributed by the Prime Minister to diminished supply and increased demand.. The present contraction of what would otherwise have bc?n available supply was caused by the failure of the Australian crop for export purposes, the temporary embargo on the export of Indian wheat, a delay of three weeks in the transport of the Argentine crop, the hokling-up of 10,000,000 quarters of Russian wheat by the closing of the Dardanelles, and the depredation of the crops in Belgium and Northern France. Mr Asquith's main conclusions were that the rise in freights had not been the determining factor in the price of wheat. The increase had been largely due to speculation in New York and Chicago. The best estimate the Government can form from a business point of view is that wheat will be available in Ruffioicnt quantities certainly after June. There was no evidence of any unusual dearth of meat. The price of sugar is> the same as in the United States and any change in the next few months is likely to lie downward. The Prime Minister agreed that freights had undoubtedly been an important contributory cause to the high price of coal. A considerable reduction has, however, already been effected by the putting of

captured: vassals; into the? service. In his ■summing-up, Mr. Asquitli speaking "as a. practical man and not as a political : economist of tlie old school," declined to fix maximum prices—an experiment, lie said, winch tlie German Government liad made with disastrous consequences. He also refused to believe- that any advantage- would have been secured by buying up the available world supply and commandeering the- stocks at Home.