WELLINGTON NEWS

Hokitika Guardian, 6 July 1927, Page 3

WELLINGTON NEWS

’III K .MAIN CAUSES. (.Special to ' Ciliarilian ”.) AY ELL! NG'l ON, .Ju.'y i. Thoughtful men, while sympathetic with chons being made to relieve unemploy nielli. and the consequent distress. nevertheless regret that steps are not being taken to ascertain the cause of unemployment which happens to be more severe and intense than fur many years past. The problem that has to lie lined in this: If every mail now out of work were placed in employment immediately, is mere under present conditions any guarantee that a similar

situation, equally acute, will not arise in another eight or ten week-. Il the cause of unemployment is to remain fully operative, then il is very questionable whether the Government or llm local bodies arc justified in asking tlic public to eontrinuto towards mere expedients designed simply to postpone grappling with the real evil. It may he optimistic and very soothing to express the opinion that there will he a change for tile better when the spring comes, hut is there any real justification for sueii an ns-amption. No doubt it' is the wish of everyone that the tragedy of unemployment will soon eiui. but it is folly to nur.-e a wishbone where a backbone is needed. Simultaneously with the relief of unemployment there shuttl'd he a searching investigation into the cause or causes of unemployment, and flic country should insist upon such an investigation being made. There arc many points that will stand close investigation, for instance from wlmt source do the hulk of the unemployed comer 1 Are the various seasonal occupations a primary contributory cause? Is al least a partial reined v to lie found in t lie ,

institution of employers' or workers’ insurance or both, in these parlictilar occupations:-' Is the immigration policy primarily to blame r Dors the trouble lie in the tendency to drill to the Cities, or in the unequal disproportionate distribution ol popm'atinn between the North and Smith Islands? AY hat. is the effect of the existing inflation in land values, and ol inflation of the currency:-' Should Government and local body lairrow ing be rest riclcil. or extended:-' Is the action of the State trading departments detrimental to public welfare:- Is tiie position mainly due to the [all in value of our primary products, and il so. to what extent, if any. is the policy of control to blame fur that tally AA mild the further protection ol local’ industries lie beneficial to any appreciable extent ? Should the restrictions on the employment of apprentices be abolished? Are the Trade Unions and the Arbitration Court responsible in any degree lor the existing state of affairs? To what extent. if any, has the reversion to the gold standard, and the consequent steady corrections ill the dispersion ot prices of various commodities adected the primary producers? Is the tall ill produce merely a correct valuation In terms of money of the difleront tonus of effort y Can produce prices he forced up by any feasible method? Ax’hnt stops must he taken to increase production:- And the number of questions can he extended indefinitely. Unemployment is an efleet, and it would he money well spent to search for the causes, hut the search must he in the hands of competent men. XEAA' ZEALAND BANK RATE.

ln the .Monthly Reveiw issued by the Alexander Hamii’ton Institute the billowing relerenee is made to the recent advance in the haul; rate: “ In view of the general improvement in hank credit;, it, is perpaps a little difficult toi understand the increase in the deposit] and advance rates. The New Zealand hanks appear to have acted rather belatedly in the matter. It is true that speculating trading should he curtailed as far as possible, hut there are ways other than raising the hank rate ol doing this. It can scarcely he deemed in the best interests ol recovery that a drag such as high-priced hank accommodation should he placed on it at the outset. In view ol the' increase In deposits and the reduction in the advance.-. in the March quarter compared with the December quarter, and in view also of the more than proportionately great improvement in the cash resei ves. the reported assertion of a New Zealand financial' expert that the increased rates were necessary to attract deposits seems to lack substance. Improvement in trade will increase the deposits, not abstention from necessary spending in order to get the hem-, lit of the extra half per cent. On the other hand, an increase in the advance rates, small though it may he. is approximately 15 per cent increase in the cost nt that particular item ol illcl Us -