PRICES AND PROFITS.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 12017, 25 March 1920, Page 6

PRICES AND PROFITS.

THE DOMINANT TOPIC. London, Feb 19 ■ The publication of the ofSoial wool, cotton, and tobacco reports, concurrently with the admitted failure of the Profiteering Act, has given an irresistible impetus to the discussions on the oppressive coat of living, which includes a 135 per cent increase in staple foods. It is the dominant popular topic of the hour, in conjunction with immediate demands for higher wages in numerous trades, which, it is estimated, if conceded,« will cost £4,000,000 weekly. The inquiries regardng tobacco and sewing cotton do not convict the manufacturers of taking the fullest advantage of the world scarcity of raw materials, or their opportunities of fleecing consumers, but the progressive increases and the enormous net trading profits remain, the Times points out, a source of popular provocation. This gives the social revolutionaries an unexampled chance to promote unrest, and is injurious to the whole structure of private enterprise. The Labour Party is concentrating on the wool and cotton reports as examples of the attitude of traders throughout the country, which they contend is responsible for the interminable rise in prices and wages. They demand that the Government shall immediately strengthen the Profiteering Act. Mr Adamson, leader of the Parliamentary Labour Party, in an interview, points out that ever since tne reports have been published Messrs Goafces and the Tobacco Combine have further increased their prices. He suggests that the Goverment ought to be forced to make profiteering a criminal offence. Many newspapers support the Tobacco Committee’s suggestion that the Government should compel all big businesses to publish exact details of costs and profits. The Westminster Gazette, however, suggests that the Labour Party will be better qualified for the criticism of monopolists when they avoid monopolism themselves, especially by the exclusion of exsoldiers from membership of the unions.

Messrs J. and P. Coats, Ltd., decline to comment upon the Profiteering Oommitee’s report. The Times regards the disclosures as a test ease, and states that the effects of mono < poly must be prtoed to the bottom. The point arises whether it is permissible for any private concern to leave the pu biic dependent upon its goodwill. There is also the question of the effects of Messrs Coats’ dealings upon our friends and allies overseas.

The Labour Party has decided to start a whirlwind campaign throughout the country to compel the Government to legislate to stop manufacturers and wholesale merchants from profiteering. Mr Clynes says that it is futile to penalise small grabbers. The big fish must be caught and their profits sharply cut down, otherwise millions of workers will demand more wages. The position has become exceedingly serious. Mr Appleton and other moderate Labour leaders declare that-strikes and further wage increases are useless. They claim that drastic and anti-profiteering legislation is the Only remedy. The Evening News understands that the position is alarming the Government, which has decided to continue the Food Ministry in- \ definitely.