COLD PRODUCTION AND THE COST OF LIVING.

Wanganui Herald, Volume XXXXV, Issue 12983, 26 January 1910, Page 4

COLD PRODUCTION AND THE COST OF LIVING.

The present exploitation of the people Mr the United States by the Beef Trust, ■> a consequence of which a large number ; are boycotting the Trust under a pledge to abstain from meat, has raised the tjue#» tion of the effect of gold production upon ' the tost of living.' ’ihe world’s gold pj»duclkm has enormously increased. And M gold is, in many countries, fixed arbitrarily as the standard for currency, an increase in gold production means an increase m money. Consequently, as there is mom money to spend, the holders of it are wilting to give more for the purchase of any article than they would give if money wem scarce. lu other words, wanting as » tide, they are prepared to pay a higher, price for it, and they generally do pay s higher price. With a falling off in gold production, there would he a less amount of money to spend, consequently less would be given for purchases, and prices would be lower. The result of a metal standard is fictitious values, and as a medium of exchange it is less Mi able in maintaining a just balance between seller and pur* chaser than would be a State paper currency.