FRIGE FIGURES

Hokitika Guardian, 21 March 1940, Page 6

FRIGE FIGURES

STATEMENT BY MINISTER.

(Per Press Association —Copyright). ' 1 f- / -f. ■> ■ i WELLINGTON, March 19. An announcement that in spite of increased costs Overseas and increased costs of shipping the all groups price index for January, the latest month for which figures are available, was only 1.3 per cent, higher than that for the last pre-war month', iugust, 1939,' was made by the Minister for Defence (the Hon. F. Jones) in an address to the annual meeting, of the Wellington Chamber of Commerce to-night. • ' * V '• ‘J ' ! ,r L''' J • ’. •” *! f(' y Jtlhis; figure compares very favourably with fhe-United Kingdom figure, ' which has |atoly shown a tendency to, rise '.to aljarming ievels,” Mr Jones said. “The) value of the Price Tribunal is further seen in tile fact that whereas prices have risen only 1.3 per cent, in five months, in the corresponding five months following the outbreak of war in 1914 prices rose by almost 9 per cent. A further reassuring factor is that while the early months of the Great War showed an unbroken rising tendency, the early months'or tins war show that prices are responding to control. Prices remained very steady up to October, with a 'slightly rising tendency. A sharp rise in November was followed by a drop in December and a further sharp drop in January.

“This gives one to hope that- tlie war psychology of 1914-18 which gave rise to that odious term ‘profiteer’ has changed to some degree, anil has been replaced by a higher standard of business morality. Some increase of prices we must have—that appears inevitable

--but what we must’ avoid is that dreadful spiral of rising costs to industry. A few may gain bv this process; but the majority must suffer.”

Mr Jones said it was a sad reflection on human nature that after good men had risked their lives in ships bringing merchandise to our shores some men—and he thought they were in the minority—would use that same merchandise as a basis for making an unfair profit. A fair rate of profit was difficult of definition ; but every man knew in his own heart when his profit was excessive. The commercial community could make a definite contribution to the war effort'by avoiding the war psychology that prompted, people to take advantage of the strong demand existing side by side with war scarcity.' The Price Tribunal bad done much to prevent prices from rocketing ; it had acted as a steadying feature. It could do even better work if it received the co-operation of the Businessmen of the country.