BRINK OF DISASTER.

Western Star, 6 April 1920, Page 2

BRINK OF DISASTER.

BUSINESS MAN’S EVIDENCE. CREDIT AND- INFLATED CURRENCY. In a statement made decently before the Fair Prices Commission in Melbourne, Mr A. W. Relph, partner in .- the firm of Sargood Brothers, bunders Lane, said: High prices have been brought about simply by the inflation .of the currency and) credit. During the war the Governments of all the countries that took part in it—including Aus-tralia-issued immense quantities of notes. This had the effect of largely “.creasing bank deposits, andi thus again largely increasing Credit. Immediately prices commenced to’ rise, ami the people, having much more money to spend, the demand exceeded tlie supply, production having fallen off. The Government can fix prices or maximum prices till they are blue n V t]ie faC0 5 they will hare no offset whatever ,except to increase the difficulties of merchants andi traders. —Cannot Fix Prices.'— “It will not improve conditions for the people; it can only ruin individuals or drive away trade. The law of the land allows private, ownership .of goods and capital; our trading system is built up on that. That being so, you cannot fix prices. The one thing would be a direct contradiction of the other. It would* be ive trying to mix oil and water. If •society wants clothes and food it must permit traders and producers to trade for profit, for this is the only stimulus to trade and production. The attempt to fix prices has been made several times in history andi failed utterly. The present Profiteering Act m England is a farce, and is to-day the laughing stock of the people. In the best controlled country in the world—in Germany—it has led to such ai vast amount of illicit trading that the enactments regarding it have had to be withdrawn, and" traders are now being freed from their shackles. —Famine Imminent.— . “At the present moment we mer- ( chants in Australia are faced with terrible difficulties. There is every possibility of an absolute famine in the neair future, and although we are accustomed to big dealings in finance we are staggered at the prices elsewhere in the world. To-day w© cannot consider prices; for the sake of the continuity of our businesses we have to ignore them, and consider only the question of deliveries and getting the goods. At this very time, when we are burdened with these worries, . this continual Government interference is becoming quite intolerable. Our associations have hitherto been taking no part in’ politics, but if this Government interference goes on we will take a hand, and see if we cannot make our weight felt. “At the present time the trading and financial world is on the very brink of. disaster, and instead of the Governments keeping their hadflb off .and letting things settle down, as they would eventually, it look® as if the Governments and Parliaments are trying to push, the community over the brink and bring disaster and ruin to civilisation.”

In view of the high prices l ruling for building material a local purchaser of one of the Wa 1 deck ‘ sections coiitcmpates erecting a hungalow with mud walls and thatching it withrushes. A few of the houses which have,, stood the test of Southland's climate for many years are in evidence To-day. Quite a large number of visitors arrived at Riverton last evening for the Easter holidays. All the available accommodation has been booked some weeks ahead.