THE COST OF LIVING.

Taranaki Daily News, 17 September 1919, Page 5

THE COST OF LIVING.

BRINGING IT DOWN. j BOARD OF TRADE REPORT. By Telegraph.—Press Association. Wellington, Last Night. The adjourned debate on the Board of Trade Bill was revived this evening by Mr. Luke, who stressed the importance of having a real live board with a real live secretary. The Bill hod been'well thought out, and gave the board the necessary power to regulate., trade, and to tlie courts power to put' down profiteering, even by imprisonment, if necessary. He anticipated the Bill would red suit in a considerable increase in, the volume of trade between New Zealand and the Old Country, with a consequent increase in the wealth of the 'Dominion. He also anticipated the Bill would tend to promote our secondary industries so as to give our young people an opportunity of following congenial occupations. He strongly urged the nationalisation of the mines. Mr. Anstey said the Bill was a belated attempt to catch up with the profiteers. The Bill ought to, have been brought down four years,.ago. Unfortunately, most of the profiteers got off with their profits because we had not pot down to the root of the trouble. He criticised Sir John Fipdlay's effort to explain stabilising values, 'because, he said, he could not see stabilising values was going to put down profiteering. In order to get at the root of the evil we required to effect a complete reversal of our fiscal policy, which exempted a large section of the community, and consequently that burden had to be borne "by another section of the community. He attacked the methods of taxing some large proprietary companies and hanks, which passed, on their taxation to the public, aftf which they paid huge dividends to the shareholders. This was the form of profiteering which the Bill did not touch. On the other hand co-opera-tive companies were unjustly taxed, but the fact remained that six millions were yearly going into the pockets of shareholders free of taxation. There were other sections of the community going free of taxation, such as mortgagees, and he predicted that unless the Government tackled this question at the root this Bill would be futile. It had 'been said that economy was the remedy for our troubles, die did not agree.:~)yith this view. What we wanted waa. increased production. To receive»this producers must he relieved as much as possible from taxation. Mr. Downie Stewart said he did nojt see how the hoard appointed under the Bill could greatly reduce the cost of living merely 'by fixing the prices. He recognised that a different policy must be observed in dealing with locallygrown produce and imported articles. No reduction in prices of local produce could he expected while there was a hungry market outside, unless the Government set about establishing some kind of equalisation fund. He thought the llbor party was pursuing the wrong policy in their methods of denouncing profiteers. They were perpetuating class conflict;, and wc(re sctti:i? local producers against them. He thought they could make more progress in their propaganda by permeating other new parties than by seeking to establish a party with an individuality of its own. ReIgarding the prices of imported articles they were regulated by considerations quite outside of our control. Nothing we could do in the Dominion could regulate them. The speaker proceeded upon an elaborate criticism of Professor Fisher's scheme for stabilising the sovereign, as outlined by Sir John Findlay on Friday night, agreeing that the scheme was worthy of the deepest consideration, as it certainly held the centre of the stage amongst American economists at the present tinie. Mr. Payno roundly condemned Professor Fisher's scheme as the propaganda of an international banking ring to get a bigger price for gold. The only way by whicih prices could too lowered and the cost of living reduced was a reduction of taxation. He advocated the" nationalisation of banking as the best means by which we could pay off <pur war debts, and so save this country "at least six millions annually by ivny of taxation. Dr. Newman said that Profossor Fisher's book was two years old and out of date, and his scheme was "flyblown." Instead of talking fine theories we should set about at once to device some practical way of reducing the cost of living. He advocated Government control of handling coal. The block system should be established and could reduce the cost by £1 per ton at Wellington. The hydro-electric power schemes must be pushed on, as should also be the Government housing scheme. It was by practical efforts such as these, and not by wild schemes of banking, that the people were going to bo assisted. Mr. Hudson thought that little could be done by way of fixing prices. The first thing to be done was to appoint, expert men as administrative officers of the Board of Trade, otherwise the Bill would be a failure. Mr. Sewple said the basis of all the troubles of the world was that production was for profit and not for use. Consequently the wealth producers were exploited by the parasitical few, and when they protested against this sort of thing they were called "industrial agitators." As a matter of fact all members of the House were agitators. They would stir up the country for the sake of the principles they thought right. They why throw bricks at Labor , members, who tried to give expression ■ to the views of the class to which they ] belonged ? What they had to do was to remould society, but instead of doing that the present practice was to regard the exploiter as a successful business [ man, hut the man who raised his voice on behalf of the people whom he exploited was often put in gaol. He de- ( olared there were certain well defined i causes at the root of industrial diacon- t tent all over the world, and read opinions expressed by Lord Roberts, Lord [ Robert Cecil, Mr. Sydney Webb, and , others to show that our social system * bred poverty, and poverty bred unrest, j But that cause of industrial discontent was not touched by the Bill. Discussing the coal qrestion, ho dcclared the coal barons were not necessary, and Parliament should not hesi- t tate to nationalise the mines before Par- * liament closes. "We at the present mo- i ment are," he said, "on the verge of a coal strike, which would diaorganise } the whole industrial system." In a few g days some Auckland miners would probably be prosecuted. That was the usual course, but that did not get rid of the root cause, and unless Parliament had i the courage to nationalise the mines the J root cause would not be got rid of. ' I Replying to an interjection as to what t was feftßfisnjo* St th* gtgts, cOaai. hajc

declared tliat the State mines were dancing to the tune of private mines. They, were being ruined by unsympathette td< ministration, and the same would happen to the Bill before the House. If it wars not administered with sympathy it would not be worth the paper it mp( printed on. Sir Joseph Ward said lie supported the Bill because the abnormal conditions created by the war required what might 'be called an abnormal law; to put them right. The real root fit the trouble was that so many producing countries had been put out of production as a consequence of the war* and many of them would not be able to return to production for the nest far years. On one side we had a of food, because land and labor were not available to produce it. On the othtr hand, owing to the need to transport troops there was a shortage of shipping >to carry food. Under these cirounstances there could not fail to be a rlie in prices, even in this country. Ho Wit against exploitation, profiteering, and liolthetfsm,' and he was firmly satisfied that to deal with those we Bhoold have to deal with them drastically. Heidid not think any of the theorl'u put forward by Professor Fisher give us back the full value of the sovereign. For t'" we have to Walt some time, and lie via Dot going to accept Professor Fi-H c '• theory until he was satisfied it wa, >n>ved correct by; thorough investigate,: He did not believe improper trading had been going on i to the extent many people supposed, but* If it was going on this Bill would act as beacon and warning to profiteers. The Board of Trade had done good work in the past. This Bill would strengthen their hands, but he would like to em* phaaise the point that the measure mast be administered with the greatest re gard to care and caution. Mr. Harris contended that all inquiries under the Act ' should be held in public, not in camera, as proposed. The more publicity given to prosecution* the better, for publicity would aet a* a wholesome check upon profiteers. No firm would lightly run the risk of public prosecution. The debate was carried on by MrField (Nelson), and Mr- Talbot, Statkani, McCombs, Holland, Fraser, and Wrigisy, (Left Sitting.)