TRADE AND POLITICS

Taranaki Daily News, 28 August 1930, Page 2

TRADE AND POLITICS

WRECKING OF MINISTRIES. EFFECT OF FALLS IN PRICES. '. “Time after time a fall in prices wrecked the Ministry,”, said Dr. J. W, Mcllraith, .ip . Wellington last week, when he lectured, upon the effect of price movements upon the social and industrial development of New Zealand to the combined Historical and Eco-J nomic Societies. I ,‘lThe people are • n;di; naturally keen students of economics) and if times are bad they consider that the Government' is to blame. They give the Government a certain time to right the matter, and if it is not mended the Government is ended, for the time being. The slump must have had something to do with our last change of Government.” Tracing the history of prices in the Dominion, Dr. Mcllraith took the nineties’ index as basis 100. On that basis the price level in 1865 was 225, and from there to 1870 prices fell rapidly, and after the Franco-Prussian war rose rapidly till 1875 to 160, and after that it tell almost uninterruptedly until 1896, when occurred the greatest slump in the history of New Zealand. From then to 1900. prices rose am] to 1912 or; 1914, at an increasing rate of rapidity/ After that' they rose almost perpendicularly to 260, and by 1925 were down, to 192 and last year to 177. The lecturer dealt with causes underlying .(me various movements, and said that the length of time winch the present depression would last was "in the lap of the... gods.” • : ■ . !i.-' ,i < : ' ■ . '• .:< .i'U-h !