RECOVERY FACTORS

New Zealand Herald, Volume LXXIII, Issue 22538, 1 October 1936, Page 7

RECOVERY FACTORS

STANDARDS OF LIVING IMPROVEMENT IN BRITAIN INCREASED COSTS LIKELY Thfi continuous improvement in the standard of living of a large proportion of the population of Britain is considered by a writer in the latest issue of the Westminster Bank Review to Ik? one of the most powerful causes of reeo very.

"Estimates in the changes in real income—that is, money income allowing for alterations in prices—over the past 11 years have recently been published,".he states. "Expressed as a percentage of the 1924 figure the aggregate real income rose to 116.2 in 1929, fell to 110.3 in 1932, rose again to 123.8 in 1934, and is provisionally estimated to have risen further to 129.5 last year. Meal income per head of population, after rising to 114 in 1929, fell to 106.8 in 1932, and then rose to 118.8 in 1934 and to 124.3 (provisional figure) in 1935. It is stated that these figures must be used with some reserve, but the trend of real income has clearly been.upward. "This is even more strikingly seen in estimates, prepared by Mr. Ramsbottom, of the Ministry of Labour, of changes in the average of real wages of manual workers up to the end of 1934. These figures refer to real wages assuming full employment, and they cannot be regarded as an exact measure of wages actually received, but they suggest that for workers in this class the standard of living roso almost consistently from 1928 to 1934. The following table shows the index of real wages (with the 1924 average as 100) at tho end of recent years:—

1027 .. 104 3931 114 1928 .. 303 V* \ 1032 116 y t 1029 .. 3(>t 1033 .. 110 1030 .. IX2 II.V/a

There is reason to believe, on the basis of Mr. Ramsbottoin's figures, that the real income of manual workers — who form the bulk of Britain's population—was at least maintained during the depression." The article explains that the improvement in real wages was duo not to a rise in money wages, but to a fall in prices. Wages were actually lower, but the fall in prices of foodstuffs was much sharper. The writer proceeds to point out that the Ministry of Labour's cost-of-living index fell from a monthly average figure of 164 in 1929 to 140 in 193)3, and rose only to 143 last year. In tho same period the retail cost of foodstuffs declined from 154 to 120, rising to 125 in 1935. At the same time Professor Bow ley's index of average weekly .wages declined slightly from 3929 until the early part of 1933, and was then stable until a slow advance began toward the close of 1934. At the lowest point the fall in wages was no more than 6 per cent of the 1929 average.

But the period of cheap food, says tho writer, appears to be passing, and real wages now definitely appear to be falling, since tho rise in prices has exceeded the rise in money wages. The result to industry is higher costs of production. The writer, indeed, suggests that the possibility ofa serious increase in the cost of living cannot be ignored.

TIN PRODUCTION MINERS DESIRE CONTROL STABLE PRICE BENEFITS "A further period of the control of the output of tin is desired by tin miners the world over and also by the Governments in countries producing tin ore." said the chairman of the Tin Producers' Association, Sir W. Harry Peat, at the annual meeting in London recently. The advantage that it had been to all tin-mining companies, hesaid, was so obvious that it was not necessary to point it out. Consumers of tin had had the benefit of stable prices, and this was of great assistance to manufacturers using large quantities. Shares in tin-mining companies had not responded in a proper manner to the prosperous conditions existing in the industry. This was due to the feeling of uncertainty as to what would happen if a further "period of control were not arranged. In effect the periods of control in the past had been far too short to establish firmly the confidence that was necessary. The association was of the opinion," he continued, that the next period of control should bp for not less than seven years. The chairman considered that, the trouble about 'Siam was due to the liberal manner in which she was treated in regard to the quota allotted her in the first agreement. He felt sure that if it had been anticipated at that time that the demand for tin would have fallen to the low figure it subsequently did, the quota then given to Siam would never have been agreed to. If the matter were referred to the tin miners in Siam, the Government of that country would find that there was an overwhelming majority in favour of accepting the terms offered by the International Tin Committee, sooner than face the terrible consequences that would* inevitably liefall the tin-mining industry in that country if international control were not renewed at the end of the year.

C. J. GREEN'S MONTHLY REPORT

C. J. Green, stork and sharebroker, reports the following sales for September: —Government securities, Bonds, 15/4/46-49, 4, £lO5 15s, £lO5 10s; stock, 15/1/ 37-40, 4, £lOl ss; 15/2/43-46, 4, £lO3 ss. Debentures: Auckland City, 4J, 1/1/44-52, £104; Auckland Transport Board, 4J, 1/4/52, £lO3 10s. Miscellaneous: Auckland Gas. 235, 23s 2d, 23s Id; Bank of Neiv Zealand (7), 39s 6d, 39s sd, 39s 7d, 39s 6d, 39s 3d; 395, 38s 7d; Broken Hill Proprietary, 74s 9d; rights, 2s, 2s 3d, 2s 4d, 2s sd, 2s Bd, 2s 6d; Claude Neon (Sydney), cum div., 51s, 51s 3d, 51s 9d, 52s 6d; Consolidated Brick, 9s 6d; Dominion Breweries (old issue), 30s, 31s 6d, 31s 7d, 31s 9d, 325; (new issue), 30s, 30s 6d, 31s; (rights), 6s 6d, 6s 9u, 7s; preference ; 29s 9d; 32s 6d; Farmers' Co-operative Auctioneering (£5 paid), 82s, (£1 paid), 13s 6d; Farmers' Trading, I,Bs 9d, 10S Bd, 18s 6#, 18s 8d; C preference, 20s; G. J. Coles, 79s 10H, 80s, 795, 80s, 79s 6d, 795. 80s 6d, 82s; Mort's Dock, lis 2d, lis 6d, lis 7d, lis Bd, 12s, 12a, Id, 12s, lis lOd; National Insurance, 18s 2d; National Tobacco, 63s 3d; New' Zealand Breweries, 535, 52s lOcl; New Zealand Perpetual Forests, 595; Nikau Bacon (o.\ bonus), 50s; preference (ex bonus), 32s 6d; Renown Collieries (cum div.), 13s lidj Selfridges (Australia), old issue, 255, 24s 10>}d, 255, 275, 27s 6d, 28s, 27s 7Jd» 27s Ba, 27s lid, 27s 6d; (new issue), 24s 9d,.25s 9d, 275, 27s 3d, 27s Id, 27s 3d; (5s paid), lis, lis 6ci; (7s 6d paid), 12s 9d, 15s 3<l; (10s paid), 18s; Wilsons Cement, 36s 6d; Woolworths (Sydney), £5 6s, £5 7s 9d, £5 8s 6d, £5 9s, £5 9s 6d, £5 9s 3d, £5 6s; first preference, 39s 6d; socond preference, 25s 9d, 25s lOd; Woolworths (New Zealand), £5 4s, £5 Is, £5 Is 6d, £5 3s, £5 3s 6d, £5 3s 4d, £5 3s 9d; Yarra Falls, 41s. Mining: Emperor, 14s lid, 15s Id; Golden Crown, 4s 3d, 4s 6d, 4s 9d, ss, 4s 9d; King Solomon, lid, lljd; Mount Morgan, 13s, 13s Id, 13s osd, 13s 2d, 13s 3d; Mount Lyell, 28s lid, 29s 4d, 29s Bd, 29s 3d, 29s sd, 29s 6d, 30s 3d; Waihi Grand Junction,'3s sd; Wellington Alluvials (is paid), 3s 4Jd, 3s. j