PRICE LEVELS

Southland Times, Issue 21854, 3 November 1932, Page 5

PRICE LEVELS

DOMINION’S POSITION. “MUCH WORSE THAN BRITAIN.” (Per United Press Association ) Wellington, November 2. In his presidential address at the annual meeting of the Employers’ Association, Mr Mitchell said that in the matter of price levels New Zealand was in a much worse position than Britain. Taking the price levels for the years 1928-29 as 100, he found the British price level down to £67 to 47.5 gold, but the New Zealand price level was down to £4B and 34 gold. In terms of New Zealand pounds it was £53. Mr Mitchell went on to show that fanners’ costs, like other costs, must be reduced. While the export prices were 21 per cent, below the 1914 level, retail prices were still approximately 31 per cent, above the 1914 level. There was however a definite downward move of retail prices, since the level above 1914 was 56 per cent, in 1930, 44 in 1931 and was now down to 31. The disparity between export and retail prices had the effect of stagnating internal trade and there was a necessity that they still further apply themselves to the problem of reducing internal costs.