WELLINGTON NEWS

Hokitika Guardian, 8 February 1927, Page 4

WELLINGTON NEWS

MEETING THE SITUATION

(Special to “ Guardian.”)

WELLINGTON, Kebruar.v 0. During the past few days the air has hern think with complaints regarding the economic situation and remedies for same and quite a number of prominent men have voiced their views. While there is scarcely any difference ol opinion respecting the unfortunate economic position there are a variety of opinions regarding the remedies to he applied. Among those who have aired their views on the subject are Sir Harold Beauchamp and Mr W. .T. I’olson, Dominion President of the Farmers’ Union, and the views of hotjri are entitled to a great measure of respect. The cause of the present depression is that the customers for our products such as meat, butter, cheese, etc., are impoverished by the great war and the coal strike and are unable now to nay the prices they formerly did for such commodities, and furthermore there- are other countries endeavouring to supply our regular customers with goods, and to do so they arc offering these at lower prices. We are suffering therefore from lessened purchasing power and increased competition and the latter is likely to increase in intensity. As the General Manager of the Bank of New Zealand remarked 'recently, we are in for lean times. That fact must lie accepted and it is our dutv to face it. The restricted

purchasing power of our customers is being reflected in New Zealand where the spending power is contracting. Sir IT. Beauchamp suggests there should he economy, individual and national, which is very good, hut how is it to he brought about. For a great number of years the tendency has been for national and individual extravagance, and it will lie very difficult to get the people to change their ways. Stern necessity will force them into increasing economy, lmt the necessity has not yet arisen. It is coming. Another suggestion advanced bv Sir IT. Beauchamp is the adjustment of laud values. The adjustment is going on at present, and it will he accelerated liefore. many months pass. Then again the same authority suggests reductions of costs which lie declares involves research into our industries, and research into the question of tariff and wages. The word “ research ” has come into very great: use in recent years and has acquired the same meaning as camouflage. There is really no need for any research. Our industrialists say that they cannot pay current award wages and carry on and therefore demand further protection. They desire foreign competition minimised or better still abolished, and thus enable them to carry on. Sir IT. Beauchamp also suggests tapering off in national and local body borrowing. Advice as to excessive borrowing has been given again and again but it is never heeded. Loan expenditure has so many political uses, and for that reason always lias a tendency to expand. The President of the Fa rni.ers’ Union suggests that the farmers should he protected and quotes the success of the Paterson plan in connection with dairy produce. Most of these suggestions or plans arc .worthless for they miss the fundamentals. Cheapen commodities by increasing the production seems the safest

way. With our lessened income we must have cheaper goods or go without ; tariff restrictions and research will not help us. The struggle to-day is between the farmers on the one side and the protected .secondary industries, and the workers employed in the same on the other. The farmer cannot go on paying present costs and make a living, even if land values were adjusted to please the most fastidious. There is a maladjustment between the primary and secondary industries and that is the root cause of the trouble. The manufacturers if they could see means of reducing costs would seize upon them. But they are in a peculiar position. On one side is the Arbitration Court with its fixed wages and conditions which hind the employer. Wages cannot he touched. The manufacturer has thus only the tariff to look to- Naturally he wants it raised, and should it he raised the Arbitration Court will he forced to give the workers a cut. and up will go the wages. The Arbitration Court is the formidable harrier to economic adjustment. Oct rid of the Arbitration Court and the chances of restoring economic equilibrium in a reasonable timo will lie greatly inreeased. The Court will lie abolished, or its powers greatly curtailed not at the instance of the employers. hut on the insistence of the workers.