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Press, Volume LII, Issue 15603, 30 May 1916, Page 6

In tho Labour Department's "Journal" for May the Government Statistician continues his review of the movement of prices. If 1000 is taken as tho index number representing the average of prices during tho period 1909-1913, the index fo r tho quarter ending with March last was 1136. This is a slight decrease as compared with the index for the last quarter of 1915. In some of his tables the Statistician deals only with tho "three food groups" (groceries, dairy produce, and meat), and in some he also includes rent. Hi s most striking figures and illustrations, and those to which he gives most space, arc those which ignore tho cost of rent. This is rather misleading, because rent is as essential a part of the cost of living to most peoples as is meat or groceries. The index number for all the groups (including rent) was 1042 in June, 1914. For the March quarter of this year it was 1136, a rise of almost exactly 9 per cent. That is the average for tho whole Dominion. In sonic places the rise is smaller than that; in other places it is greater.

The fact remains, of course, that food costs more than 9 per ccnt. above what it used to cost before the war. But it is a fault of those ivho take some largo and abnormal rise in order to show how people aro suffering that the.v ignore what actually takes place when prices jump up abnormally. The sensible household docs not stick fast to its former scale of household expenditure. It buys cheaper things or substitutes other articles, as much as possible, for the very expensive ones. This is being done in many households that aro conH fortably enough established, and the householders do not feel that they aro suffering any hardship. How many people who listen to "tho friends of the people" ever learn from their guides that tho rise in the cost of living is far greater in Great Britain than it has been here? Of course, when the "friends of the people" hold that whilo the British workingman earning £3 10s a week should pay £7 a year in income tax and Is a pound duty on tea and lsd on sugar and 6d on cocoa the average person here should pay nothing at all, wo could hardly expect them .to admit that the silent courage with which a grievous riso in the cost of living is borne in Britain is a reason why the untaxed New Zealander should bear a rise which is trifling compared with that in Britain and in almost every other belligerent country in the world. - ▲ V

Not many pcoplo perhaps havo remembered that Germany alleged that she was attacked by France—in the shape of some bomb-dropping at Numberg— before sho declared war on France. It was fin obvious enough lie for which no evidence was ever offored. But it has evidently been believed in Germany; otherwise there would bo no point in the solemnity with which a German writer in a German paper furnishes the proof that the story really was a lie. It is natural that this should rccall to tho "Matin" the famous Ems telegram which precipitated tho war between France and Germany in 1870. Franco was opposing the candidature of Prince Leopold of Hohcnzollern for the Spanish throne and after the withdrawal by the Prince, Count Bencdetti was sent by the French Government to Ems to ask tho King of Prussia to affirm that ho would oppose any revival of the idea. Tho King refused to give any undertaking, and finally refused to seo Bcnedetti any more. An account of these proceedings, doctored by Bismarck, so incensed tho French Parliament and people that war became inevitable.

Tho inner history of this affair, as given by Busch in his memoirs, suggests that there need have been no war. Bismarck gave Busch this account of the way in which he "faked" the Ems telegram :—

•'I invited Moltkc and Roon to dine with me that evening, and to talk over the situation, which seemed to nic to bo growing more and more unsatisfactory. Whilst wo were dining, another long telegram was brought in. As I read it to them—it must havo been about two hundred words—they were both actually terrified, and Moltke's whole being suddenly charged. He seemed to be quite old and infirm. It looked as if our Most Gracious might knuckle under after Jill- I asked him (Moltkc) if, as things stood, we mieht hope to bo victorious. On his replying in the affirmative. I said: 'Wait a minute!' and. seating myself at a small table. I boiled down those two hundred words to about twentv. b:it without otherwise nlteror adding anything. Tfc was Ahoken's telegram, yet «omethi"c: d'A^-nnt— shorter, more determined. less dubious. I th"n handed it over to thorn, and n«kod: 'Well. !r'w dees that, do now?' ' Yr»s.' t)u w - ' i u-ill d" in that form.' And "WnltVo ir->rnrdir>t«lv T»o----cane quite yovng and frp«'» ag"in. He had ,T of l ,: s war. h : s tvado. the thing roil'v succeeded. Thf> French were feirfnllv anev.v nt tho condensed t.Hotr r am as it ,Tnr\n nrr <l the news-mrp-s. nod a r>P e'qvs later thev declared war asnir>«t us."

Tint there was anything to bp reorobated in thus unnecessarily destroying the prospect of a peaceful end to the dispute never occurred to Bismarck.