£1 Today Worth 11s 8d

Bay of Plenty Times, Volume LXXVIII, Issue 15118, 29 October 1949, Page 2

£1 Today Worth 11s 8d

Comparison With Value In 1939 Mr Holland On Living Costs “Honest money should be the foundation of the country’s economy,” said Mr S. G. Holland, in his address at-Christchurch, “but today the ever-falling purchasing power c l money is on everyone’s lips. “Mr Nash, speaking at Auckland in March of this year, admitted that there was £166,000,000, or 83 per cent , more money in circulation in 1946 than in 1939, and 25 per cent, less goods for the people to buy. That points to a dangerous condition

of inflation, which is the direct result of the creation of new money and credit, without corresponding production of goods.” So long as (his policy was continued, so long would prices continue to rise, and Mr Nash, in the same speech at Auckland, had said that the present system of finance should continue for many years to come.

The effect of this inflation, according to the figures of the Government statistician, was that £1 today bought what 11s 8d would have bought in 1939—0 r it took £1 14s 4d today to buy what £1 would have bought in 1939. Thus the age benefit of £2 10s was today actually worth only 295. Yet Mr Nash said the present financial system should continue for many years to come, Mr Holland added.