THE COST OF LIVING.

New Zealand Herald, Volume LII, Issue 16072, 11 November 1915, Page 9

THE COST OF LIVING.

SUPPLY AND- DEMAND. LOCAL AND EXPORT PRICES. VIEWS OF FARMERS' UNION. The cost of living with relation to the supply of, and demand for, the produce of New Zealand, was a matter discussed by the Auckland executive of the New Zealand Farmers' Union last night. The chairman, Mr. A. A. Ross, said there had been an undercurrent of feeling among consumers, who felt that the retail price of food should be hied independent of the export price. If there were an undue margin between, the two prices steps could be taken to prevent exploitation. Mr. J. C. Allen said it wes being dinned into the ears of the people in town that the farmers were doing well. He said last season was anything but a good one. It was true that this year the season was better. He considered it was better to leave the matter alone. Mr. R. Duxfield agreed with Mr. Allen. Any effort to interfere with the prices would, he said, result in chaos. It had been tried before in Australia and New Zealand, and had proved unsuccessful. Mr. Duxfield moved. "That this executive is of opinion that any interference with the natural law of supply and demand is most dangerous, and is not in the ! interests of prosperity and the welfare of any community. Mr. J. L. Montgomery said that if the prices of foodstuffs had not been fixed last year, there would have been a meat famine in Auckland. Mr. A. Schmitt pointed out that the people of New Zealand had to pay the highest retail price in a country which was noted for its productiveness. Mr. Allen : The reason why the prices are high is that only the best cuts are in demand. All the poorest meat is tinned. Mr. J. E. Mak<rill : That brings up the question, " Are the consumers prepared to economise and buy poorer cuts of meat?" • Mr. Schmitt said he was of opinion that the prices obtained in New Zealand from the Home Government were very fair. J.he local prices were higher because of the demand. \ The motion was put and lostr only the mover and seconder voting for it. The chairman then moved,- and Mr. Schmitt seconded : " That, if it is found upon inquiry that local consumers of farm produce are being exploited by retail prices being fixed at an unduly high rate [in proportion to the export value, this executive would be in favour of the Government, during war time, taking over at the export price for local consumption ; a sufficient proportion of the output and disposing of it in such a manner as would keep the local retail price within reasonable limits." Mr. Maktjill said the proposal opened up a great question. He was not pre- ! pared to vote for it. Other members also : opposed the motion on the ground that , the ' scheme was impracticable. j Mr. Ross said he wanted a scheme that I would protect the consumer without inter- | ferinct wi'th the law of supply and demand. He said the law was frequently 1 interfered with by " rings" and combines . without legislation doing anything. ! The potion was lost on the voices, the chairman and the seconder only voting ' *