THE COST OF LIVING.

Auckland Star, Volume XLVI, Issue 64, 16 March 1915, Page 6

THE COST OF LIVING.

UNDUE RISES. DRASTIC ACTION JUSTIFIED. BRITISH GOVERNMENT'S PRECEDENT. ECONOMICS STUDENT'S VIEW. In tbe course of bis recent lecture on the economics of the war, Mr. Meredith Atkinson, the director of the tutorial classes at the Sydney University, pointed out that it was inevitable that the cost of living should rise in consequence of tbe war, but added that it should hot have risen so much as it has in most countries.

Prior to his departure by the Riverina for Sydney to-day, Mr. Atkinson, in an interview with a "Star"'' representative, discussed the position in New Zealand. That the cost of living' must rise was due to several causes, he' observed. One was the restriction ofj production in some of the richest coun- j tries of the world, owing to the with-: drawn! of producers, tbe devastation of| large tracts of country, and the land and! sea blockade of Germany. Less was being produced and more being dcs- j troypd than in any previous period, and the inevitable result must be a rise in the general cost of living. That situation, however, did not so strongly affect New Zealand, which was so far beyond tbe zone of hostilities. But even in New! Zealand a rise must be looked for, since this country looked for many of its i supplies to the countries involved. Again, the Dominion was producing wheat, meat, and wool, three primary necesst-; ties, the demand for which must steadily increase as the war proceeds. UNDUE RISES. "In my opinion, however, such demand has not risen to the proportions which justify such a high riso of prices as that which is now taking place," he continued. "I believe that the home ■consumers of New Zealand are being compelled to pay unduly high prices owing to the fact that her agricultural products can obtain such high prices in foreign markets. The rise in tbe price of flour in Australia, at any rate —and tbe same applies to New Zealand as far as I am able to judge—has been very largely unjustified. Indeed, the Bret big rise in price took place at the opening of the war before the stocks of the millers were in the least likely to be ! affected. It seems to mc, when we look 'at the high percentage of the rise in , price of foodstuffs since the war began, land consider the quantities of available stocks of food and commodities, very I difficult to justify such a great rise. | Perhaps the most glaring case lis that of sugar, which, as I everybody knows, is v home product. : The sugar trade of Australasia is mostly a colonial trade, and is. therefore, but : little affected by the factors which aro making for a rise in prices in the imme- ! diate arena of the conflict. In the extraordinary conditions ruling during war time, it seems bardlv extravagant to commend the political judgment that lends Govrenments of to-day to interfere w '*h things regarded as sacred during normal times.

STATE BAKERIES. "The suggestion for State bakeries and the Government's action in purchasing quantities of wheat, seem to mc absolutely sound, and wholly justifiable in the present circumstances, and I fear that even more drastic action may be required before many months arc over, for there is sure to be an even greater rise of prices than "at the present time. The home consumer can only be saved from very serious loss by some restriction which will keep preserved to him the old advantages of the home market. A BOLD EXAMPLE. "Ihe English Government," continued Mr. Atkinson, "has given an ex.'mple to the world in bold and drastic State ac " tion in an unparalleled situation. No Colonial Government need fear to take similarly bold steps in such miprcce-. dented circumstances." Mr. Atkinson paid a warm tribute to tbe hospitality iof New 'Zealanders. He observed that it had been a great joy to him. and to Mr. Stewart, bis colleague in the Workers' Educational Association movement to notice the cordiality and j enthusiasm with which the project to establish th„ Association in New Zealand had been received by all classes of the j community. New Zealand had the reputation of being the most forward country in the world in matters social and industrial, and yet it was none the less striking that ber peoplo were very glad to accept and to apply to their institutions ideas that worked well in other lands. ".W e are going back to Australia with the feeling tbat all is well witb the Workers' Educational Association in ■New Zealand," concluded Mr. Atkinson.