FIGHTING THE PRICE BOOM.

Auckland Star, Volume L, Issue 221, 17 September 1919, Page 7

FIGHTING THE PRICE BOOM.

GOLD AND OTHER THEORIES. SCEPTICS AND INTENTIONS. SOME PARLIAMENTARY OPINIONS ON PROFITEERING EATLS. (Special to "Star.") WELLINGTON, Tuesday. A number of speakers in the second reading debate on the Board of Trade Bill to-night uttered opinions from various points of view on the cost of living problem, and how to deal wit') it. Mr, Anstey, in criticising the currency stabilisation theory advanced by Sir John Findlay last week, expressed the opinion that the member had enlarged on the evil's of the present system without explaining clearly how the index number principle was going to Temedy it. Mr. Payne frankly scofl'ed at the idea of stabilisation of prices and the cost ot living being etlected by the application of Professor Irving Fishers scheme. He contended that adjustments under it would not have any other eilect than to enable traders to reap more profits, i "'like scheme is based on the false assumption that gold is the basis of credits," he declared, adding, caustically, i '•No one but a banker would have the impertinence to assert that gold is the foundation of our credit system. We Snow that when war broke out. holders of notes rushed the banks, and the Government had to come to the rescue and closo the banks and the Stock Exchange for three .'lavs. Over :t hundred millions was issued in State notes to the Bank of England, and that isi-ue of "State notes saved the whole industrial anJ commercial fabric of the British Empire. At that time there was not enough in the Bank of England to pay the public sixipence in the pound/ Mr. Payne proceeded to contend that the only way to remedy the cost of living difficulties was to lessen taxation, and that eouid be effected by the nationalisation of banliALREADY FLY-BLOWN. Dr. Newman was also severe on Professor Fisher'e scheme, which, he exclaimed, was a very clever one, but had been proved 03- experts to have nothing, in it. In short, he said, it is already flyblown. (Cc-neral laughter, and loud cries of "Hear, hear" from Mr. Payne). '•This bill," went on t'ue doctor, "i" a good bill so far as it goes, but it deals only with future supposed criminals, or it may be real criminals. I do hope the Hwnse will not break up this session without doing some practical work to, deal with the cost of living, which is ! causing real distress to a large number of poor people in this country." Mr. Semple's remedy for stress of I living was summed up in the word*-. "A I new "oixlrr of society, based \ipon production for r;so and not for profit." Mi. Harris said in one business of which lip had knowledge, it was difficult to prove profiteering. Wiben a. line of tweed posting 10/ Ca. yard, made in New Zealand, was sold at only a email advanse on the pre-war price, yet very I similar tweed imported cost 22/6 in ! England, tCie landed cost being 40/. NO BOLSHEVIK HELP WANTED. The Leader of the Opposition expressed the opinion that the real root of the cost of living trouble was that some of the most productive areas in the world had been put out of production by the war, including nearly the ■whole of Europe, and consequently our food supplies had been drawn upon to an extraordinary extent, sending up prices. Had it not been for the action of the British Government ]in requisitioning foodstuffs and regulatI ing the exports, prices of many commodities in New Zealand' would have reached famine figures. Sir Joseph Ward proceeded to express the hope that the policy he had recently enunciated would be placed on the Statute Book if the people of the country approved it at the approaching polls. !At the <amc time he did not want to sec that policy placed on the Statute Book with the assistance and co-operation of men whom he viewed as dangerous extremists. He was not against agitators in the ordinary sense of the term, but he ! was very strongly opposhed to BolshevI ism and men who posed as Bolshevists. j His policy was, he believed, a good, j strong and economically sound policy, ,'but he did not want any Bolshevik as- ' sistance if the time came to put it on the Statute Book. Sir Joseph suggested that the theories of economists notwithetandI ing, he did not believe the sovereign I would get back its ordinary position in j . purchasing power until a normal condition , lof things returned, when the devastated ' countries were again able to feed their i own people. Until he knew the result ■of complete investigation by qualified ! experts regarding the scheme for stabilis- | , ing the sovereign by reference to the J value of commodities he was not going to accept any theory hurriedly. He regarded the bill as a warning to people ! who carried on trade that if anyone carj ried out improper, unfair actions there ; was an Act of Parliament to bring them to book.