The Guardian AND EVENING STAR, With which is incorporated " The West Coast Times.” TUESDAY. MAY 31st, 1921.

Hokitika Guardian, 31 May 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated " The West Coast Times.” TUESDAY. MAY 31st, 1921.

UNEMPLOYMENT AND WAGES. There are soinc remarks in an economic journal just to hand irom the United States, which interpret the situation there in regard to wages in relation to production, which are applicable in a great measure to the situation developing in New Zealand. In America, of course, trade and industry are on a more vast scale, but the positions seem to he wonderfully parallel in their ultimate effuct on tlv economic development. It will he of interest therefore to quote a portion of the article as follows:—“It is a not uncommon remark that employers are taking advantage of the state of depression and unemployment to force wage inductions. It is an ill-advised comment. calculated to cause had feeling and indicates a want of understanding of the actual requirements of the situation The fact is that depression and unemployment exist because th c industrial situation is out of balance, and there is no remedy except by such readjustment of wages and prices as will restore the balance and enable the various industries to exchange products on a fair basis. It is impossible when onehalf of the people of the country hare lost approximately one-half their purchasing power for the other half of the people to g° on without taking note of it. The depreciation of money which resulted from the war was not a natural or permanent development. Nothing of the kind has ever happened without a readjustment afterward, ail'd it Is always the case that the sooner that adjustment is accomplished, so that normal relations ar e restored between the industries, the better for everybody. It is of no advantage to the workers in any industry to have costs maintained upon a level which prevents the sale of their products. Somebody must have the sagacity to attempt a restoration of the conditions under which an exchange of products is possible. The compensation of workers in the various branches of industry—which means their purchasing power—must he brought back into equilibrium. Whether it wjll take a long time or only a short'time depends upon the rapidity with which the public comprehends the situation, and remarks of the kind referred to do not promote an understanding.” The article then branches into a phase of the question which more directs applies to this district at the present juncture, when there is the slump in the timber trade, Here in New Zealand there is no need for “a, vast amount of house-building” as in the United States, but for the same reasons as exist in America, so here nL-o, the industry is held up, and those engaged in providing building material are out of employment—or trending to that, unfortunate position. The American comment continues: —“There is opportunity for a vast amount of house building over the country which' would give employment to thousands of skilled

mechanics in the building operations, and many thousands more in all ths building material industries, and which would bring about a general reduction of rents and improvement in living conditions. Such a revival of house-build-ing would cfuieke.n all the trades and industries and go far in tiding this country over the period of depression which the world is hound to experience until Europe recovers from its state of prostration. But there will he no general revival of house-building upon the present level of costs, because the public cannot pay rents upon that level of costs. And that is only one of the dislocations which must be overcome before there can be a general revival of industry. It is sakl in opposition to wage and price reductions that the _fnil decline in raw materials and foodstuffs lias not been reflected in retail prices. Of course, it has not, when at every step between the producer and consumer an obstruction is raised. Cotton cloth does not reflec t the full decline of raw cotton, because mill wages, rents, freight charges, price ot coal, and other charges which enter into the cost of making doth all of which consist for the most part of labor, have not been reduced correspondingly. Then* will be no loss to labor in bringing them all down together: on the contrary, labor will be the chief gainer, through lower living costs, full employment and stable conditions.