Hokitika Guardian & Evening Star WEDNESDAY DECEMBER 15th. 1920 WAGES AND PRICES.

Hokitika Guardian, 15 December 1920, Page 2

Hokitika Guardian & Evening Star WEDNESDAY DECEMBER 15th. 1920 WAGES AND PRICES.

, A statement has been issued by the • Federation of British Industries which dtfnls with the vital question of the future of wages and prices. The Federation find that the three chief changes in the economic siuation which have been brought about by the war are: (1) The extreme shortage of capital due to the enormous destruction which took place during the war, and to' the espem diture by the Government of the new savings of the people , during the same period; (2) a considerable reduction in the supplies, of peace time commodities available for consumpion, due to the withdrawal'of a large portion of labour and to the submarine menace; and (3) the increased buying capacity of the public owing to the Government’s method of artificially increasing the supply of money in order to finance the war. Particular emphasis- is laid on the neces sity for increased production as an antidote for the present high prices. “The only effectual means by which prices can be reduced and the real wages of labour improved is by working the existing instruments of production at their maximum pressure, and so increasing, as rapidly as possible, the mass of commodities to be bought.” The present-day industrial worker would do well to understand that “cn* canny” and similar methods not only fail in their objects, but, by causing a rise in prices, actually reduce the purchasing power of their present wages. Further, it is pointed out that th o work-ing-classes cannot expect any immediate improvement in their standard of living; “they have, indeed, more reason to fear the reduction of it.’’ The position can only be restored and fresh capital obtained by working to their maximum capacity “the few instruments which the war has left us.” It appears that the Federation consider the Government responsible for concealing the true position by means of subsidies and inflation of the currency, but, as pointed out, although theso methods are being discarded and the Government is attempting to rjestrict existing credit, the workers are still pressing for further increases in money wages. Much as the indu's trial world desires peace, it is difficult to see how this can be accomplished while workers are “obsessed by the vain dream that it is possible to obtain additional purchasing power simply by increasing the number of units in which their wages are reckoned.” While this is the position in England, it is interesting to note that wages are being reduced in the United States to save unemployment. In New Zealand we are still burning the candle at both ends and also in the middle, for wages are being increased by bonus, Government are paying out subsidies which enhance the cost of food supplies, and the currency is being unduly inflated with extra paper issue. With these conditions prevailing, both wages and prices must remain high, the public will continue to pay the piper till saner methods of administration are brought into vogue