BRINK OF DISASTER

Evening Star, Issue 17311, 26 March 1920, Page 7

BRINK OF DISASTER

BUSINESS MAX'S EVIDENCE, CREDIT AXD INFLATED CURRENCY. In a statement made recently before the Fair Prices Commission in Melbourne, Mr A. W. Relph, partner in the firm of Sargood Brothers, Flinders lane, said : _ " High prices have oeen brought about simply by the inflation of the currency and credit. During the war the Governments of all the countries that took part in it—including Australia—issued immense quantities of notes. This had the effect of largely increasing bank deposits, and thus attain- largely increasing credit. Immediately prices commenced to rise, and the people, having much more money to spend, the demand exceeded the supply, production havirw fallen off. The Government can fix prices or maximum prices till they are blue in the face; they will have no effect whatever, except- to increase the difficulties of merchants and traders. CANNOT FIX PRICES.

"It will not improve conditions for the people; it can onlv ruin individuals or drive away trade. The law of the land allows private ownership of goods and capital ; our trading system is built ur> on that. That being eo, you cannot fix prices. The one thing would be a direct contradiction of the other. It would be like trying to mix oil and water. If society wants clothes and food it must permit traders and producers to trade for profit, for this is the onlv stimulus to trade and production. The attempt to lix prices has been made several times in history and failed . utterl- The present Profiteering Act in England is a- farce, and 'is to-day the laughing stock of the people. In the best-controlled country in the world—in Germarn-—it has led to such a vast amount of illicit trading that the enactments regarding it have had to be withdrawn, and traders are now being freed from their shackles. FAMINE IMMINENT. "At the present moment we merchants in Australia are faced with terrible difficulties. There is everv nossibility of an absolute iamins in the near future, and although we are accustomed to bie dealings in finanr"' we are statrgered at the prices elsewhere in the world. we cannot consider prices; for the sake of the continuity of our businesses we have to ignore them, and consider only the question of deliveries and getting the goods. At this very time, when we -are burdened with these worries, this continual Government interference is becoming quite intolerable. Our associations have hitherto been taking no part in politics, but if this Government interference goes on we will take a hand, and see if wo cannot make our weightfelt,

"At the present time the trading and financial world is on the very brink of disaster, and instead of the Governments keeping their hands off and letting things settle down, as they would eventually, it looks as if the Governments and Parliaments are trying to nush the community over the brink and bring disaster and ruin to civilisation.''