PRODUCTION AND COST OF LIVING.

Otago Daily Times, Issue 17940, 20 May 1920, Page 4

PRODUCTION AND COST OF LIVING.

PRIME MINISTER URGES OAUTION.

(Pun United Press Association.) WELLINGTON, May 19. borne interesting references to the publio finance were made by the Primo Minister at the annual dinner of the New Zealand Dental Association to-night. Mr Mas&ey said ho did not wonder that there was today a great clamour for public expenditure Development, improvement, and expansion were wanted in every direction, and each of tho claims was in itself good, but Now Zealand had only a certain amount of money to spend, and that point could not be emphasised too strongly. "It will take us all our tim e to avoid a wave of depression, ' said tho Prim© Minister. "Wo do not want depression, and I believe that it can bo avoided, but it can be avoided only by oare, economy, and' industry on the part of the people of this country. Wβ must curtail the extravagance that has been going on in the town and the country for a long time past. Money had been plentiful in New Zealand, more plentiful perhaps than in any other part of the Empire. Ihe people of the dominion concentrated during the war on doing everything they possibly could to supply the' heart of the Empire with the products it required for the use of its people, and for the army and the navy. The consequence has been that money has poured into this country in a way we had never experienced before. But a change is coming over the scene. You will have seen from London that already there has been a drop in prices. The commandeer of our produce is coming to an end, and we must not expect to receive for our principal products the prices that we have been receiving. There is no question about :t that some people will see consolation in the reduction of the -cost of living. W e all want to see the cost of living reduced; but, remember, that we are not likely to have the amount of money to spend that we have had during the last few years. That is why I wish to impress upon the publio of this country the necessity of being careful."