STILL UNSOLVED

Evening Star, Issue 22142, 24 September 1935, Page 5

STILL UNSOLVED

TRAGEDY OF UNEMPLOYMENT RESTORATION OF WORLD TRADE THE CURE “ The tragedy of uncmploj-ment is far more serious in the case of young people than any other,” said the Hon. W. Downie Stewart, in touching on the subject of unemployment in the course of his address at Burns Hall last night. “ The problem cannot be solved by the Government alone, and I think an appeal should be made to all employers in every centre to see whether they can stretch a point to each take on even one or two extra youths, whether strictly needed or not.” Mr Stewart considered that the unemployment problem, while it was lessened in intensity, still constituted the most urgent and tragic problem of the day. It transcended, or ought to transcend, all party divisions, and if any individual or party could present a simple and sound and quick solution the proposals ought to meet with universal support. Unfortunately, neither in New Zealand nor elsewhere, so far as he knew, had any Government— Liberal, Conservative, or Socialist—been able to offer a satisfactory cure, unless it be Japan, which was hardly in point owing to different standards of living. Ho did not think the problem could bo fully solved until world international trade- was restored, so closely were all modern . countries linked together and international trade would not be fully restored until currencies were stabilised on some basis that would make trade no longer a gamble. “ So far as I have observed all efforts to cope with the problem by distributing increased consumers’ purchasing power have met with little success, as under this process prices rise more rapidly than wages,” continued Mr Stewart. “In fact, Ido not think we can rectify the position by any of the means which seem so alluringly simple. But it is gratifying to see that the Budget proposes a substantial expansion of public works, which will absorb many unemployed at standard wages. This is the right time to expand public works in order to stimulate recovery. Experience in America, England, and elsewhere seemed to show that in the depths of the depression even many millions spent on public works proved of little use. The forces of the depression were too great to overcome by that means at that stage, and the effort was abandoned in England; but it seems equally' clear that once the tide has turned then public works expenditure, with low capita] costs, helps materially. It is true that it is difficult to find public works that will eatn interest and not become a burden on the taxpayer, but it is far better and less demoralising to give the unemployed work on jobs that may indirectly benefit the country than merely pay sustenance. The unemployed themselves would prefer this.” Mr Stewart said he thought the expansion of public works, housing, and further assistance to industries should make a material improvement to the unemployed position in the near future, and it was estimated that over £1,250,000 more would be available in the coming year. The proposal, however, to reduce the tax from lOd to 8d was ■open to criticism. Before any reduction was made ho thought it would have been better jto exempt from the tax the men on a very small wage. He did not think any citizen objected to the tax when lie know that some of his less fortunate fellow-citizens were on the bread line. (Applause.) A Voice; Cut the tax out altogether. Mr Stewart: Ido not think that would be wise. Most people to-day agree with the principle of paying as we go in a matter like this. This led him to say that, viewed from a national standpoint, the Agricultural Commission dealt with only one feature of national life, certainly by far the most important; but if the future of farming exports was in jeopardy, and if they might be forced to employ people on further expansions of manufacturing industries in order to provide them with a livelihood, then he thought the Agricultural Commission should be expanded into a National Economic Council, so that all aspects of the future national policy, whether in regard to primary or secondary industries, could be studied as a whole, and properly co-ordinated; otherwise they might be concentrating intensely on one phase of the national economic life, and if that was curtailed or broke down, they would have no plans prepared for alternatives or substitutes. 0