21

EL—44

These tables plainly indicate that, with a decreased volume of export as compared with the calendar year 1914 the country has received enormously increased values, amounting to no less a sum (Table 2) than £14,241,619 for the two twelve-monthly periods ending respectively 31st March, 1916 and 1917, and it must be remembered that during the calendar year of 1914 there were five months of war prices included. But it is not only those engaged in farming pursuits who have benefited by the result of war prices. Probably 90 per cent, of the population has benefited to some extent, though not always to the same extent, in the general prosperity that has resulted, even after allowing for depreciation in the purchasing-power of the sovereign, as shown by the tables that indicate the extent lo which prices have risen generally. Evidence of this is found in the increased sums put through the totalizator and in the enormous sums spent on luxuries and amusements. The returns of the savings-banks show that at the end of the calendar year 1914 there were 483,262 depositors, and these had increased at the end of 1916 to 645,117 depositors; whilst at the end of 1914 the excess of deposits over withdrawals amounted to ,£1,301,305, and in 1916 to £2,618,989. or 100 per cent, increase in the short space of two j'ears. RECOMMENDATIONS. The Board frankly confesses it, has not found during its investigations and inquiries a panacea for the increased cost of living. The fixation of prices, although force of circumstances has compelled almost every nation in the world to adopt this course, is fraught with many and obvious dangers. The conditions in New Zealand do not yet warrant a general resort to so drastic a remedy. True, the Board has recommended the fixation of prices of certain commodities and the Government has adopted its recommendations, but loss and hardships have in some instances been occasioned thereby, and these have not always fallen on those best able to bear them. It is admitted, however, that the assistance and work, of the Board has served as a check on combinations that might otherwise have taken advantage of their economic position to "exploit* the public, meaning thereby extracting an illegitimate gain. The usefulness of the Board in this direction would be greatly enhanced if power were conferred on it by legislation making it obligatory on purveyors of goods and services (to be speeilied from time to time by the Board) to give the Board at least seven days' notice of any intended increase in price and the reasons for such increase. Such reasons could then be considered, and if they were found to be unsatisfactory the proposed increase could be disallowed, the present legislation being sufficient to deal with any trader insisting on an increase after such a decision had been come to. A]) increase in price may be necessary as the result of any one of a number of causes— e.g., a shortage in supplies, a rise in freights, increased cost of labour; but during war periods a trader should not be allowed to increase his price more than is necessary to recoup him for the extra, cost entailed, as suffering may be caused before competition has restored the balance between supply and demand and eliminated undue profits. We believe that with the loyal co-operation of the commercial community the exercise of the powers hereby sought, would give confidence to the great mass of the people that " exploitation " and " profiteering " would be effectively checked. In conclusion, the Board would urge the imperative necessity that now exists for increased production, for rigid economy, for the curtailment of expenditure on luxuries, and for the elimination of waste. We desire to express our thanks for the help which has been given to us in the course of our inquiries by the officials of the various Departments, especially the Government Statistical Branch, the Department of Agriculture, the Imperial Supplies Branch, the Customs Department, and the Crown Law Office, who have furnished us with much valuable, information and advice, and also to. the many witnesses who have responded to our invitation to give evidence before us. A statement showing the expenditure of the Board for the period is given in Appendix E. W. G. McDonald, J. R. Hart, • Members of Board. P. Hally, J. W. Collins, Secretary. 31st July, 1917.