WAGES AND PRICES

Press, Volume LXXVII, Issue 23494, 24 November 1941, Page 8

WAGES AND PRICES

Sir,—ln reply to "Excalibur," every, man has the right to expect his "income to go as far in purchasing his: , living expenses as before the war." Also, where his purchasing power is • not up to standard, he has a right to have it brought up to standard. There is no good to the community in reducr ing the purchasing power of the masses. That means a reduction of internal' business, as was proved in the depression. Reduction in purchasing power to buy goods produced in sufficient quantities in this country creates two problems and solves none. With the gradual closing down of. public works, business is contracting on the West Coast. For men not to have sufficient purchasing power when goods are in plenty shows a failure of the business capacity of bankers and chambers of commerce. The Reserve Bank note, although only, paper, buys a pounds worth of goods and nobody can dispute the soundness of its value. With fixation of prices and rationing, where necessary, the purchasing power of the Reserve Bank note will remain. constant, and no inflation is possible, no matter how plentiful the issue of money is.—Yours, etc KAYE HOE. November 21, 1941.