WELLINGTON NEWS

Hokitika Guardian, 9 April 1927, Page 1

WELLINGTON NEWS

FXPOUTS AND IMPORTS. (Special to “ Guardian.”) WELLINGTON, April ti. The trade figures of New Zealand for January and February ol this year give very little scope for comparison which would he of any value, still there is ti certain amount of comfort to he derived front them and certainly this will he useful to hurl at those who v. i'.h to take a pessimistic view. The exports for the two months of the current year were valued at d().220,09i, as compared with L'9,JG9,2()S in the corresponding two month.-, of last year, there was thus an increase of t'8J1.223, which on the lace ol i! was satisfactory as it indicates that there has been a larger volume ol exports, lint if a comparison on a seasonal basis is made the position appears in (piile a different light. Thus to the end of February live months ol the current produce year have ended, and the exports for that period totalled CIS. I !<>.•_' IC». as compared with C20,-'U!o.-p-„M in the corresponding live months

of the previous season, a decrease ol !_'2.2;-(>,(>7- eipml to ll.l*o per coni. Turning to the imports the value for the two months of this year was C7.JtW,t)7U. against 28,051,427 ill ihe corresponding two months of ]!)2t>, showing a decrease of C1,(*17.577, but if we take the live months to the end of February the contraction tit the imports was much greater, the actual figures being I'll).(112.7)09, against e2J.1T2.i97. a shrinkage of CJ.o2!).(iJ2. Cfitml to about I A.2.“ per cent. For the two months of this year the exports at 210.220.P0l show an excess over imports of C 2.910,921, while in the corresponding two months of 1920 the excess of imports was only e 11X021. This year’s figures are very enroll raging in so far as they tend towards adjusting the trade balance, hut there cannot, lie any good effect on domestic trad.. 1 . 'lhe continued shrink-

age in imports implies Thai the purelmsing power of the community having contracted, less merchandise is reouirrd to meet Ihe demands, and with less goods to handle, turnover must decrease and profits shrink, and it is hardly to he supposed that traders wilt be satisfied to maintain current overhead charges with shrinking profits. They must endeavour to effect reductions in those overhead charges, and when those reductions are made the shoe will pinch. However. The figures for the two months are encouraging and warrant a certain amount of optimism. Il exports continue to ox, panel and imports are held in cheek tho economic' outlook should change for the better. THE ARUITRATrON COURT. Within the past few months there have been many attacks on tho Arbitration Court and the farmers in particular have been .somewhat persistent that, it should he done away with altogether because the awards of the C ourt are passed on, leaching the primary producer who is tumble to pass on liter increased costs. There are many oilier arguments that could be brought forward in condemnation oT the Arbitration Court. The ActT creating the Court was passed in 1894, amt it is somewhat singular that with the exception of Australia no other country in the world hits seen iil to adopt our compulsory arbitration system. The Court was established primarily to settle hours and wages, hut if. has become'. a regulative body for tlic adjustment of all industrial conditions in New Zealand. ft is too clumsy for the regulation of industry lor il has introduced a dead level of uniformity. And !ms encouraged the idea that wages depend on the judge's tint., and not on the economic situation. il breed-- a liligons spirit and turns union secretaries into industrial barristers. It assumes as a basic principle that mas ten- and man are fundamentally at variance until a dispute arises. It prevents the parties from exploring other channels of industrial harmony and kcc]>s their noses to the grindstone of controversy. It nuisi in the- long run lead to State fixation of rent, interest and profits. "ee all the dis-

tributive shares ;iiv connected. and tins intNiiis Socialism. It can never be final because the utmost the employer can concede tails short ut what the worker will demand. The existence <d a weapon of industrial coercion in the background will always he a temptation to men. on whatever side, who think the circumstances of the moment n.*o jn their favour. Productivity is the fundamental determinant, of real wages. Higher rates of wages unaccompanied by increased production are cancelled out by increased unemployment or higher cost of living. Labour is paid not for its exertion hut for the value it produces. Our Arbitration Court by fostering the idea that real wages depend on the judgment of a court and not on the productivity oi industry lias fostered inefficiency and raised the cost of living. As iar as possible industrial conditions should he won by struggle. That makes the loon tougher in fibre, more responsible, and more practical.