Prices and Wages.

Hokitika Guardian, 27 February 1922, Page 3

Prices and Wages.

EMPLOYERS DISCUSS REDUCTIONS. WELLINGTON, l-Vh. 24 A meeting of representatives of business and manufacturing trade associations convened by the New Zealand Employers’ Federation for thto purpose of bringing about an immediate and general reduction of prices in the event of the Arbitration Court deciding in April that a reduction of wages was justified, was held in tlb Chamber of Commerce this afternoon. There was a record attendance troni all parts of the Dominion. A series of resolutions, designed to give effect to this object, was unanimously carried. Many delegates explained that the organisations they represented had already at their own instance made the necessary preparation. In some cases it was pointed out that owing to the extraordinary slump prices of certain services and commodities had already fallen below tlie cost of production and that any decease in wages paid would not counterbalance this. In these cases it was felt- that the general reduction in prices of services and commodities brought about by giving effect to the above policy would inevitably tend to minimise such loss and would hasten reduction in these cases also.

All present concurred in flic view that a universal reduction in prices was the only way to ensure re-cstab-dishment of trade on a safe and prosperous footing and obviate unemployment. It was emphasised that reduction Of prices would mean that-no reduction in the money rate of wages would he felt, nor would it entail any loss of purchasing power.