H.—lB

XXVI

It will be seen that the general level has risen less since 1890 in New Zealand than in any other country. It also fell lower during this period in five other countries than in New Zealand, the New Zealand averages generally showing a higher degree of stability. 3. The next table gives a comparative view of the changes in price from (a) the average of the period 1890-99 and (o) the average for the year 1896 to the year 1910. It shows clearly that the New Zealand price-level has not risen to anything like the degree observable in most of the other countries.

1890-99. 1896 to 1910.

Table 14.—Changes in the General Price-level between (a) 1890-99 and (b) 1896 and 1910.

4. The years 1911 and 1912 show a further upward movement in all.countries of which we have seen records. Sauerbeck's index number for the United Kingdom advanced from 118 in 1910 to 121 in 1911, and for May, 1912, stood at 130, while the New Zealand index number advanced from 103 to 107, and at the end of June of this year stood at 109. This continuing upward movement abroad is shown in the next table.

1911-12.

Table 15. —The "Economist" Index Number, showing Price-movements in the United Kingdom in 1912.

A rise occurred between December and July in every group except colonial produce. 5. It will be shown later in this chapter that the comparatively slow rise in the general level in New Zealand is partly due to the small degree in which materials have risen. The New Zealand index number is open to the criticism (see page 304) that it does not contain certain articles which have risen considerably and therefore does not measure the real fall. Your Commission has accordingly included in the index number five articles—viz., tin, copper, cotton, hides, and leather—taking their English prices for the period 1890-99 and the year 1911, and assuming that the New Zealand prices varied with the English prices. 5 ! The result is to increase the New Zealand index numbers forjmaterials for 1911 from 105 to 118, and the general index number for that year from 107 to 112, But the real rise in the index number for materials is not so high as 118,

(a.) (b.) Country. 1890-9. 1910. 1896. 1910. Inited States .. fermany ianada 'ranee Inited Kingdom ielgium few Zealand 100 100 100 100 100 100 100 134 125 128 101 108 100 100 100 100 100 100 100 145 142 135 131-5 128 127 108 104

Date. Cereals and Meats. Other Poods. Textiles. Minerals. Miscellaneous (Rubber, Timber, Oils, &c). Total. Percentage. iasis (average 1901-5) ind December, 1911 .. January, 1912 .. February, ,, March, „ April, „ May, „ .. June, „ .. 500 600 6071 619 6181 6351 633 6421 300 407 405 411 400 3851 379 3731 500 5391 561 573 578 581 570 5791 400 460 4681 493 608^ 5121 4931 5011 500 5801 571 571 586 5881 61l| 608 2,200 2,586 2,613 2,667 2,791 2,693 2,687 2,705 100 1171 1181 121 127 1221 122 123