WELLINGTON NEWS

Hokitika Guardian, 30 May 1929, Page 2

WELLINGTON NEWS

COAL IN NEW SOUTH WALES,

(Special Correspondent.)

WELLINGTON, May 28

The owners of the Northern coalfields of N.S.W. who have suffered and are suffering from incessant strikes, have issued a brochure setting forth the position. There is no criticism in the 28. pages of the booklet which deals .With events from 1915 to date. In 'August 1915 the workers demanded 20 per cent increase in wages for miners and 26 per cent for surface hands. After considerable negotiations an agreement was reached which was to be in force for three [years from January •1, 1916. In October 1916 there was a fctrike as the miners wished to work under their log. But this is all ancient history, for. strikes have occurred every year since 1914. Hie smallest number of strikes was 99 in 1918, and the most strikes occurred in 1921 when there were 529, according to the statistical records of the Department of Labour and Industry of New South Wales. The declared selling price of coal in 1916 was fixed at 12s per ton for Newcastle. On January 1, 1917, the price was raised to 15s »aml’.it is now: 25s per ton. The price Jhad to be increased to meet new conditions imposed by authorities either Government itself or . else a board, a commission, ; a court or a tribunal. Increases ; injwages are by no means the only factor which directly caused increases in the selling price. Bailway charges have more than trebled, and there have been various additional taxes and new imposts by Government departments. Side by side with increases in direct-" charges jthei e have been increases in indirect " costs. By far the most serious oif these have been first, limitation of output by the miners; and, second, the undisciplined acts of the, miners themselves in the shape of innumerable petty strikes and persistent absenteeism. It was made very clear last year that not only Was Australia losing most of her foreign coal trade, but that cheaply produced coal from abroad was invading the Australian market.. Gradually depression settled on the»industry. Under normal conditions! there ‘ .hye’, • approximately .60 collieries working on the northern field,, protlming approximately 40,000; Kofi's’ ‘pev my. l *v • u 4 ’ " ; - ’ The closing of practically the majority of the northern collieries came into effect on and after March 2, 1929. Since then about 33 collieries, the majority very small, have been in operation, • -producing- approximately. -5000 tons per day.' These collieries employ about 2000, whilst those that have closed have rendered 1000 idle. It is claimed by the owners that to stimulate consumption in Australia it is necessary to reduce the price of coal by 4 s per ton, and to compete in foreign markets the price must be lowered by 5s per ton. The colliery owners declare that they have no objection whatever to higher rates of pay, so long as wages are actually earned, hut there can be no real prosperity s<p long as the worker is restricted in his output by union conditions, such as., are the rule in the coal trade nowadays. The owners are willing to resume operations on conditions (1) The owners must in the interest, of discipline insist on the right of dismissal and free selection of employees. ’ (2) That all restrictions on output must he removed. (3) That all contract rates he reduced by 20 per cent. (4) That day wage men he reduced by Is 6d per day. (5) That hoys be paid for actual job instead'of wage scale. Certain representatives of the miners have been in New Zealand holding out the hat for contributions,, and it is believed that some unions have contributed notwithstanding that we have our own unemployed. ; Unemployment in Australia and New Zealand; must continue so long as costs'remain unadjusted.

MARKET OUTLOOK. Business men .would be well advised to closely watch |lie movements in the money market, and especially the trend of affairs in the United States. The share gamble on the New York Stock Exchange has been prolonged with occasional breaks-when call money went skyward. In'March last there was nearly a panic when the call rates went up to 20 per Cent. Trouble was averted by some df the New York leading banks coming to the rescue. The credit situation is now rather stringent and will- probably become worse. The re-discount rates of all the Resetve Banks is .now 5 per cent, and the Advisory Council of the Federal Reserve Board lias suggested that any Reserve Bank desiring to do so should he allowed to rfise the rediscount rate to G per cent. Jf New York Reserve Bank raises its rate as suggested money will he dearer in New York, dearer in London, and the effect will he that all loose funds will gravitate to New York, furthermore, Americans will withdraw from Europe what credits they can and per- ' haps sell such shares as they hold in European joint stock companies. The transfer of credit from Europe to the United States will fall mainly on Loudon, and sterling exchange is bound to drop and gold may leave England. The

Bank of England has boon preparing

lor eventualities, but notwithstanding that, it may he necessary to raise the bank rate to G.V per cent. Such a rate

would cause a drop in commodity prices and the effects will lie felt everywhere.