WELLINGTON NEWS

Hokitika Guardian, 12 January 1927, Page 4

WELLINGTON NEWS

UNEMPLOYMENT. (Special to “ Guardian.”) WELLINGTON. January In. In tlie four chief cities the menace of unemployment, threatens and this is much to he deplored. At this time of tim year there is always a quiet period in certain trades, hut this year the position appears to he abnormal. The creator number of unemployed are apparently unskilled workers or labourers and the number lias increased because the Public Works Department havings completed certain works lias been forced to discharge men. ft seems incredible that in a young country like Now Zealand there should he so much unemployment. No doubt the “waster ’

element is a factor. There are some men who will not work, and there are others again who prefer idling in the cities to working in the country. It the facts were really known it would he found that there is plenty of worlc availahle in the country districts, hut not at award wages. It is really not the lack of work hut the high wages demanded for inefficient services that is the cause of unemployment, and it is obvious that the current year will see a good deal of unemploymnet, which will involve many tradesmen and shop assistants as well as labourers and unskilled workers. It is an economic problem and must he solved on an economic basis. It arises Irom the fact that the income of the community has been very greatly reduced. The latest available figures show that the exports from New Zealand for the 11 months to November 30. 1.92(1, amounted to C4l .0 13.877. while for the corresponding II months of HIT), the amount was C50.6(8,781. Thus it will he seen that in 102(1 the income of the country was less by L 0.000.000 as compared with 192-1. that is to sav wo had so much less money to spend. Ibis is not all for we have been over-importing. Tints while our exports for the 11 months of 102(1 totalled £II ,(1-13.877, our imports during the same period were valued at £45.501.4(17, and our imports wore thus €3,857,100 in excess of our exports. This is a very unsatisfactory state of affairs, and it stands to reason that normal conditions cannot he expected under such circumstances. 01 course it should he stated that the borrowings by the State and the local authorities in London and Australia lias enabled us to meet the interest payments on our foreign indebtedness and to leave a margin to account for the increase in imports. Hut such a state of alFuirs cannot be allowed to continue. Adjustments must lie made, and economies effected, till of which will be very distasteful. There must be it tapering off of borrowing, production must, he increased on farm, factory and shop, otherwise wages must come down. Die “ go-slow ” policy ol labour must he abandoned, and every man give ol his best and up to full capacity. There will he no need for reduction ill wages if production is increased. Without an output of plenty, plenty cannot ho enjoyed. The total production apparently changed last year, and as the award wages are above the economic rate fewer people could remain in employment to get it, LOW PRICE LEVELS.

As production increases the tendency is for prices to fall. 'This was noted in respect to tho butter market. In June. 1921. am! in 1921, while Europe was struggling to increase her production Australia and New Zealand obtained very high prices for their outputs. Last year there was a substantial increase in the European output and the price of butter declined. This process will continue and therefore we may expect to see a lower range of values. In the latest Year Book the Government Statistician gives an interesting table showing the values of our principal exports as recorded and as

computed on the basis of values tor tho year ended June 30, 1911. The items taken comprise about 93 per cent of our total exports, 'thus for the year ended -Tune ,30. 1920. the recorded value of our exports was £12.112.203. while the value at ilic 1911 prices was C 23.381.337. so there was a price gain of £11.030.371. In the preceding year the price gain was £23.2(18,(181. which shows the steady drop in values. Me must expect a continuance of this and meet the situation by increasing the production, otherwise we will be forced with economic problems of a very serious nature.