RISING COSTS.

Evening Star, Issue 22383, 6 July 1936, Page 11

RISING COSTS.

TO THE EDITOR. Sir, —I suppose the most discussed topic in this city and elsewhere at the present time is rising costs, (in their relation to the restoration of wage cuts to 1931 level.) The one referred to in many cases is coal. This most necessary commodity has been increased in price, and it is a very • peculiar thing, but true, that when winter comes, up goes the price of coal. This time- the persons responsible say they have an excuse for this, namely, restoration of wages. When one looks back and remembers that practically every winter coal prices were raised for no apparent reason, one begins to wonder why. There appears to be no excuse but sheer greed. On this occasion, a prominent business man says his emare to blame as they are to get nack something taken away from them by our late Government. How nice it must be to be a director on some large juicy business, and I think this gentleman holds quite a few of these positions. All that he and his fellow directors have to do is to sit back and raise prices on the goods in the various businesses they control and bljfme wages for it. Considering the numerous firms .this band of men are interested in it is surely a paying proposition. If coal proprietors continue to exploit the public in this way, 1 for one hope to see the State coal yard in existence again in this city and probably this will help to show them the error of their ways. In your editorial the other evening you contended that increased employment could not wholly counteract the restoration of cuts, and you mentioned that many thrifty people would bank their money. In my opinion these would be very few. Taking the big majority of those who were in constant employment during the depression, and subject to all wage reductions, it would be many months before they could think ot banking. Taking my own case, it 1 was given £IOO to-morrow 1 could spend every penny in a very short time upon things of every description needed in a home, and Have very little to show where tho money had gone. The big majority who were in constant employment are in the same boat, and have had to do without many necessary things simply because they did not have the money. Give them that money now along with Beany 5,000 w’ho will be employed by Public Works, and will have their £4 a week to spend, and you will find that for many months this money will be spent in building up their homes to pre-depression days. This will naturally stimulate business, so that in a very short time many firms will have to increase their staffs, reducing unemployment figures and generally increasing the consumption of practically everything. Many business people realise this fact, and I only need to refer to an article by Mr Kelliher, a prominent Auckland business man. I think that by co-operation with the Government in this matter and the curtailment of this raising of costs, which is entirely unnecessary, this country of ours would experience the return to prosperous times for all such as prevailed a few years ago.—l am, etc., ~ July 4. nic.