Dear Sir,

Bay of Plenty Beacon, Volume 11, Issue 56, 21 July 1947, Page 4

Dear Sir,

Letters to the Editor-must be clearly written on one side of the paper only and where a nom-de-plusne is used the name of the writer must be included for reference purposes. The Editor reserves the right to abridge, amend or withhold any letter or letters. STRIKES AND TAXATION Sir, —Apparently the objective of the worker to satisfy his need for more purchasing power (wages) is by striking; which is a fallacy! The high cost of living can be traced directly and indirectly to taxation. Price control and other controls contribute towards crippling produc-. tion, as all producers can testify. - High taxation is one of the major systems of control, being used to cripple production, and maintain shortages. Shortages allow the bureaucrats to continue their planning. What would the people think if the Government announced that it was going to take £lO out of every £IOO, held by the people in the form of war bonds, savings certificates, or bank deposits? But such a statement, in effect was made by' a Government authority only a few weeks ago, when it was announced that a higher basic wage and a shorter working week would result in the cost of production increasing by at least 10 per cent. s This cost will -have to be passed on .in increased prices, which will automatically depreciate the value of the people’s savings. Every strike for higher wages must result in more shortages, and if the higher wages

are obtained, higher "prices for goods and services. It is about time that Union members learnt that there is a way to increase incomes without inflating prices. Production means credit, and credit means exchange for goods and services. And finance (cash) is the means of exchange; and should be faithfully distributed by Government on behalf of the people, to enable the producer andconsumer to equate their demands on goods and services, without the resort to foreign finance, which is crippling sane production and moral effort, through shortage of purchasing power. The Government is your servant “or ought to be,” not your master, as agent for the International Banker. You pay the piper, but foreign finance calls the tune! Yours etc., W. BRADSHAW.