COST OF LIVING.

Press, Volume LI, Issue 15268, 3 May 1915, Page 2

COST OF LIVING.

A COMPAKISON—IB7S AND 1915

INTERESTING FIGURES

(srECur. to "the -prksb.")

WELLINGTON, May 1

I Some interesting evidence, comprising the results of careful research, were given at the Arbitration Court by Dr. James Mclhvraith, 8.A., LL.B., D.L., upon the relative cost of living to-day I and in the year 1875. Dr. Mcllraitli i was called as a witness by Mr C. W. Smith, representative of the Union j Steam Ship Company, in its industrial I dispute with the Federated Cooks' and j Stewards' Union. Mr Smith's object was to show thr.t the cost of living was greater in. the year 1875 than to-day. Dr. Mcllraith said he had made a close study of the matter of wholesale prices of goods and the cost of living. Tho wholesale prices last year, prior to the war,'were not as higlV as in 1875, but wero about 5 per cent, lower. It was about the year 1875 that the wholesale prices of mqst commodities began to fall all over the world. Towards the end of a long period of prosperous times the retail prices, i.e., tho cost of living, increased faster than the f wholesale prices', but in a time like the present, wholesale prices seemed to increase much faster than retail prices. If any reason could be assigned for this he would say it was that towards the end of prosperous times people had money to spend and they were not critical of the retail prices but in a tiniQ like the present the shopkeeper was under the public eye more than the -wholesale dealer. One Australian opinion upon why. the cost of living had not risen as rapidly as it might under the war conditions was that rents tad been reduced. His Honour: Tliat is actually taking place? >■■'■'■• •:■■■.• Witness': Yes. . 1 understand house agents.have 5000 houses <m*their books,and: the reduction', in , ; rents over. these would amount roughly to about 10 per centv In some cases it would be ac much as 25 per cent. Mr Smith: Between June, 1911, and .August, 1914, did the cost of Jiving increase?—lt rose 3. per cent. In 1913, he added, the boom in wholesale prices was, reached, and they then began to fall, until the'outbreak of the war. Since that date the vise in the oos t of living was about 9 per cent. Wholesale;" prices had increased twice as rapidly as retail prices since tho war— 20 per cent, as against 9 per cent. Tho r.i.«e had been chiefly in i'arm produce. Its cost now -was as high as in ISGS. Before fheVwar brokeoutfarm produce had reached- the highest level since •1579. • . ... To Mr Carey, witness said the purchasing power of the sovereign had decreased since 1908 to prior to tho war by 9 per cent. , To his Honour, witness said that the decrease in rents since the war was attributed by house agents to the fact that people who had not paid rents had taken advantage of the war conditions. Some ;said , they could not now pay as much rent, though perhaps being equally as prosperous. There was also a feeling, no doubt, among landlords that the times called for a little feeling for their tenants. His Honour: Perhaps that feeling obtains elsewhere also? Witness: Yes, I. should say so. •