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Mr. Yon Dadelszen, ex Registrar-General, framed the following index numbers of money wages and their purchasing-power over food between 1895 and 1907. They have not been continued after that year : —

Table 36. —Showing Changes in Nominal Wages and Real Wages in New Zealand, 1895-1906 (Von Dadelszen).

Whilst the former table shows a rise in real wages of 9 per cent, between 1896 and 1907, the latter shows it to be only about 3. The difference is partly explained by the fact that the latter takes into account food-prices only, which have risen faster than the prices of commodities in general in New Zealand. Between 1896 and 1907 both index numbers show the money wages to have risen from 21 to 25 per cent. The information on which these numbers are based does not appear to allow of a precise estimate of the rise in the purchasing-power of wages. All that can be said with certainty is that wages and prices have pursued almost parallel courses, and that over the greater part of the last twenty years the rise in wages has been sufficient not only to preserve the old standard of living at the increased prices, but to add considerably to the comforts and common luxuries consumed. In other words, the improvement in the standard of living has been due to the rise in wages having relatively cheapened cost of living at the original standard. The improvement of the standard of living is, therefore, not a cause of the " cost of living " as defined by the Commission, but has been made possible only by the increase in that cost having been outrun by the increase in income. But for the last two years the accelerated rise in the prices of food and some other necessaries has probably made it more difficult to maintain this higher standard, for incomes do not appear to have risen in proportion, the wages lagging behind prices even more than has been usual. 8. The movements abroad have been similar. The per-capita consumption of the common articles has increased greatly during the period of rising prices, and both the money and real wages have also increased. The following table shows the trend : —

Standard of living abroad.

Table 37. —Wages and Prices Abroad (Hooker). (1890-99 = 100.)

The conclusion drawn from the figures on which the above table is based is that " during the past two decades the rise in wages, in those trades for which we

. Year. Wages. Food-prices. Beal Wages. .895 896 .897 .898 899 900 901 902 903 904 905 906 907 * •■ ! * ■ 85 84 85 89 88 90 90 93 97 99 98 100 105 84 86 86 87 84 86 90 106 100 99 102 100 103 101 98 98 102 105 105 100 89 96 100 96 100 101-5

United Kingdom. France. United States of America. Wages. Prices. Wh f e - \ Retail Food. | Food - Wages. Prices. _ .. Prices. w time Wh ° ,e - Retail g6S ' Earn " ™"** Retail sale -„ , mes. sale „ , Food. Food - | Food. Food ' .890-94 895-99 900-04 905-09 910 .. " i 95 97 103 105 106 109 99 101 105 110 97 103 107 111 94 98 102 107 110 Ill 101 100 104 107 112 104 96 89 96 94 94 106 117 I 97 96 104 113 105 91 109 119 131 | 95 105 114 I