CAUSE OF HIGH PRICES.

Sun (Christchurch), Volume VII, Issue 2051, 10 September 1920, Page 7

CAUSE OF HIGH PRICES.

INFLATED CURRENCY.

A LABOUR INVESTIGATION.

Bu Ctble. — Press Association. — Covi/right. (A. A- N.Z.) LONDON, Sept. 8.

The interim report of the committee appointed by the chief Labour 1 organisations to inquire into the cost of living deals with the effects of the inflated currency, which the committee regards as the main factor of high prices, and not a shortage of commodities, as the world's production of goods has not fallen more than 20 per cent. The report states that the gradual deflation of the currency till the depreciation in terms of gold has been eliminated will reduce the general level of prices about 20 per cent., but a drastic dellation would cause widespread unemployment, and probably a fall in wages. Development of the world's productive capacity would result ultimately in a substantial fall in prices.