SUPPLY AND DEMAND.

New Zealand Herald, Volume LVI, Issue 17269, 19 September 1919, Page 4

SUPPLY AND DEMAND.

Sir, —There are two very interesting articles in the Herald of 17th inst., and 1 am sure the thinking community will read them with pleasure. They are: " Control of Prices " and " Gold and its Value.' Fixing prices by legislation has always failed, and will continue to do so till the end of all time. Possibly during the war it was necessary to adopt some such measure as regards foodstuffs and wool, but unfortunately the prices of labour and other incidentals contributive to the cost were not fixed, and when the demand arose for the necessary factors, up went the price of same, leaving many producers without adequate profit for their expenditure. Regarding the production of gold. That, like every other commodity, is surely entitled to its market value, and to say it must be sold locally at a price less than its cost to produce is absurd and means the shutting down of many mines and throwing men out of employment, To-day India would buv standard gold at about £6 an ounce for the purpose of jewellery making. The quicker the open market is open to the producer the better for all concerned The law of supply and demand will then, 1 am sure, assert itself.

M. Woodruff.