The Daily News. SATURDAY, APRIL 17, 1915. THE DOMINION'S PROSPERITY.

Taranaki Daily News, Volume LVII, Issue 264, 17 April 1915, Page 4

The Daily News. SATURDAY, APRIL 17, 1915. THE DOMINION'S PROSPERITY.

In these times of national stress, when tfie war is so vitally affecting the finances of the world, it is only natural that New Zealand's position in relation to all that concerns the prosperity of the country should lac watched with the greatest concern; not that there is, or ever was since the upheaval commenced, the slightest ground for anxiety on that matter, but that motives of prudence and self-interest require a careful watch to he kept on our outward and inward trade, as well as on the liquid capital available for loans. Tho Dominion is in the happy position of being able to obtain for her products the very high prices ruling as a consequence of the \var. The total value for the year ended March 31 amounted to over £27,000,000, which is nearly four millions more than in the previous year, and eight millions above the total for 1911. No doubt, had there been no disturbing influence affecting imports, tliey also would Tiave shown an increase, but the-smaller the imports the larger the amount of money left in the Dominion, and though the Customs revenue suffers the advantage is decidedly on the side of the people, as money is more plentiful. There is every reason for anticipating in the current year a continuance of the good times. Another reliable indication of the satisfactory financial condition of tiie Dominion is exemplified in the banking returns for the March quarter, which show an increase in deposits of £3,384,435 over the corresponding period of last year, the free deposits alone being £2,482,901 larger, a fact which proves that the producers liave been doing exceptionally well. The increase in Government deposits, amounting to £585,440, is also matter for congratulation, as it demonstrates that the Minister of Finance has made adequate provision for contingencies. On the whole the position is extremely favorable under the exceptional circumstances prevailing. It was feared that one effect of the war would be to restrict the amount of money available, but the returns mentioned dispel that fear, and indicate that there is an abundance of money in New Zealand ready for advances. 'An equally gratifying # fact is that the fixed bank deposits also show increases, and the abnormal expansion in the deposits of all kinds is evidence that the demands on the banks have been curtailed, and that there is a tendency to "go slow" in view of a possible depression after the war is ended. Naturally, the discounts have decreased, the shrinkage amounting to £382,080, the excess of deposits over advances being £3,088,677. This may not be conducive to swelling the profits of the banks, but it discloses that the financial position of the Dominion is strong. There was an increase in note circulation of £072,G4G, but the coin and bullion available showed an increase of £1,102,098, as compared with last year. The figures mentioned above testify to the prosperity of the country, and especially to the good time for the producers. The retaileTg may not be doing as wel! as they would wish, but most of them have adapted themselves to prevailing conditions, and these will have little reason to complain in the long run. It is a time when we all expect to make sacrifices, and the present satisfactory conditions of finance in New Zealand should put the commercial and trading community in good heart, for there is every prospect of the prosperity lasting.

•THE PRICE OP FOOD.

The Prime Minister Ims asked the Food Commission to Bit for the purpose of investigating the rise in food prices since the outbreak of war and ascertaining whether or not there is foundation Jor the charge of "exploitation." Mr. Justice Stringer, the chairman of the Commission, lias work in hand juat now, aiv) the demands upon his time in connection with the Arbitration Court are likely to be large in the near future. But it is understood that he will be able to begin the investigation before the end of the month, and that the Commission will arrange to hear evidence In the four centres at least. The pro:>.;->d-ings will be interesting, but it does ';nt appear at all likely that thoy will aflV.vl the consumers immediate relief, or in deed that the consumers need expect any real relief at all during the course of the war. Some farmers and merchants ar:> | making very largo profits as a result of the increased prices that are attributed to the war, but the circumstances hardly justify any general accusation ef "exploitation." The price of cheese, iov example, has risen some 30 per cent, en the London market as a direct consequence of the reduced supply from Europe, and the increased demand for the feeding of millions of British soldier?. New Zealand must pay the equivalent of the London price or go without cheese, since the factories and merchants will sell in the best market. The Do minion cannot talk about prohibiting or limiting the export of foodstuffs r.t a time when the Motherland needs every bit of assistance -we can give her, and this country is uncommonly prosperous and well fed in comparison with lands that are feeling the real pinch of war. The Commission may tie able to discover a disparity between the price at which the Government sold imported wheat to th» millers and the charges i.i% posed upon the public for bread, lr.it all the evidence in that connection will not be on one side. Then, even supposing that the Commission is able to point to concrete proof of "exploit;!tion" in connection with some articles of consumption, the Government is net likely to move other than cautiously. The utter failure of the attempt to fKthe price of wheat is fresh in the mind* of Ministers. The latest rise in th" price of butter has angered the consi'.'i.ers as much as anything has done in connection with the gradual increase, in the cost of living, and no doubt l!ic Food Commission will give some shave of its attention to this subject. Bit have the people who complain so loud!/ remembered that the war has shut off supplies of Russian butter from the Mother Country and largely reduced the supply of Danish butter, by causing U.c. Germans to become buyers at fancy prices? And how many consumers ie mind themselves, when they are payir.g their .seventeen pence for a pound cf butter, that they arc buying the concentrated product of two gallons of milk? When the operator at the dairy fact.iiy Ims put two gallons of milk through the separator, he has enough cream to | make one pound of butter, plus about j one pennorth of skim milk, reckoning its value for the feeding of calves or pigs at id a gallon. That is the value ■imt on skim milk from the separators hy competent dairymen. The housev.ife who pays fourpence a quart, or Is td a gallon, when buying milk at the door docs not realise that butter at Is 5d a jound represents milk at from Cd to Sd si gallon. The comparison is not strictly a fair one, since tlio cost of the milk at the door inetydes heavy charges for carriage and distribution, but the figures go to show that there are two sides io the case. There are dairy experts who say that the proper retail value of but ter is about eighteen pence a pound, and predict fliat this price will_be realised the year round in the future if the expert demand continues'to grow at llie piesent rate. The world's appetite f.t lnitter is outgrowing the supply at a great pace. A pound of cheese represents as nearly as may be one gallon of milk, the whey is practically without commercial value. Count the of manufacture, storage, cartage and distribution, and then ask if 9d a pound Is an excessive price.