The Guardian And Evening Star, with which is in corporated the West Coast Times. THURSDAY, OCTOBER 20, 1927. SUPPLY AND DEMAND.

Hokitika Guardian, 20 October 1927, Page 2

The Guardian And Evening Star, with which is in corporated the West Coast Times. THURSDAY, OCTOBER 20, 1927. SUPPLY AND DEMAND.

In the thought for the times to-day there is a quotation from a press correspondent alio gives liis views on the economic aspect of supply a\u\ demand. This is a very Vexed question, much canvasser! at each and every financial crisis. Agreement is lacking in opinion as to the cause, but there Is no doubt as to the general effect prevailing upon trade and intercourse generally. Remarks on the subject by tbe President of the New Zealand Employers’ Federation at the recent annual meeting are having some attention just Uo\V. It is interesting to note that the gentleman in question, Hon T. Shniler-Weston, was a pupil of the local State School where he received his primary education. Air Weston lias risen to considerable public prolnin-

cnee, and Ins annual remarks at the Employers’ Federation, year after year are usually considered with a geod deal of public interest. In his latest address he gave a large amount of useful advice to his audience, particularly in regard to the necessity for closer cooperation between employers and wage-earners with the object of increasing production. But it is more in relation to the Arbitration Court to which it is intended to refer to-day. He declared strongly against the proposed abolition of the arbitration system, stated that the Federation’s Advisory Board is opposed to the suggestion, and assured his hearers that, as the destruction of the “Court will not remove the present depression,” therefore it “is not the appropriate remedy.” This definite view is of interest, coming from the source it does, representative of the employers, and it will he of some interest to follow out the argument- for the retention of the present system. As to how far it is responsible for the present state of supply and demand will

be a matter for general opinion, but Mr Weston’s remarks may be -welcomed as showing that, in spite of the opinions entertained by some individuals, the official organisation of New Zealand employers takes a just and ra-

tional view of the present economic situation. Mr Weston maintains with great force that, though the trade unions have sometimes abused their powers, the cause for the present widespread industrial depression must be sought elsewhere. He holds that “the present agitation against the Act is due largely to one award,” and that the effect of this award has been “grossly exaggerated.” Of course all the employers will not Be in agreement with the Federation views, but that at least, is a composite organisation, and its opinions must have weight. In a general way it is often a charge that the Arbitration Court is to blame solely for the general difficulties prevailing, and which are most apparent in unemployment. For instance there is the argument in the thought for the times that supply and I demand alone should govern wages. I That is the reactionary view expressed I

since the curliest establishment of the principle of arbitration. Admittedly supply and demand must be taken into account, but it is not the only aspect. The result reached by arbitration is the judicial vieyv, as it yvere, after taking into account all the governing factors. Wages, yve are advised, have risen in America because the supply has increased. That is, production, as a result of organisation has grown and the article is produced cheaper, and the cheapness creates the demand, and so trade jumps ahead. And that must be the underlying consideration—lo produce more and cheaper, and so inciea.se trade, which means n higher demand. Then to provide the supply conditions of employment as to work and pay must be better. Tn that way the economic difficulties will be overcome.