THE LONG ECONOMIC ABM.

Auckland Star, Volume L, Issue 187, 8 August 1919, Page 9

THE LONG ECONOMIC ABM.

(To Hie Editor.) . Sir, —Your comment under the above heading on the Ist inst, is very interesting, but not quite convincing. You point out that in May the sovereign's lowest value ill New York was 4.62 dollars and that last week it fell to 4.32, and "the difference between the lowest rate in May and the closing rate last week is about 1/3, which roughly corresponds with the rise in the price of petrol in Chri9tchureh." Now had the petrol been bought iv America last week when the sovereign was at 4.32 we should expect to have had to pay higher for it, but all the petrol now being sold in this country must have left America when the sovereign was at 4.C2, bo that I think the Economic Arm is in this case a lightning ono, the thunder will follow in the prowls of those who are exploited by the holders of benzine to the extent of 1/4, not because of the fall of rate of exchange in New York, but because of the increased demand for benzine in New Zeakmd. It is surely also a long arm in reasoning to suggest that "motoring will cost more in New Zealand because the British coal miner is not working as hard as he might." Xo doubt the coal shortage in Britain would have that strange effect here in time—though the mere mention of the possibility would, I am sure, cause Bob; Smillie and hist merry men to work thirty hours in each twenty-four—but surely the immediate cause of the rise in petrol here is the increased demand for it, caused by our coal ehortage. However there is a possibility of cheap coal, for in the same paper we are told that the Government (of Great Britain) had decided against the nationalisation of the coal mines, and also that the Allied Powers have notified Germany that they require the immediate delivery of huge quantities of German coal in accordance with the terms of the treaty. Presumably the Governments agree there is no necessity to nationalise British coal, as they can get huge supplies of the German article "in the terms of the treaty." The British minera struck for nationalisation. The Government, remembering the terms of the treaty, decide against nationalisation, which means against the miners, and demand huge quantities of coal from Germany. Thus do we see how the coal shortage is to be overcome, and the British miners and other British workers rewarded for their patriotism! The German Government reminded the Allicß, we are told, that to deliver the coal demanded to the Allies would provoke Bolshevism; it will, but not in Germany. Why, I am sure the motorists of New Zealand would refuse to use petrol if it were reduced to the old price in consequence of some of the large quantity of German coal being brought to New Zealand, thus relieving our coal shortage and reducing the demand for petrol, though after all it might pay better to exchange our goods with Germany, where the value of the sovereign is high, than with America, where the value is low. Perhaps some of' our wartime threats about never trading -with Germany again were a trifle harsh!—l am, etc., TOM BLOODWORTH. , August 2, 1910.