WELLINGTON NEWS

Hokitika Guardian, 28 February 1930, Page 7

WELLINGTON NEWS

WHY UNEMPLOYMENT. (Special Correspondent.) WELLINGTON, February 24. The winter is yet many weeks ahead, but already the cry of the unemployed is heard. The number of worless promises to be greater than usual this

winter, but N.Z. is not singular in that respect for Australia is similarly I circumstanced. It would be a difficult matter just now to find a single country that is not confronted with the unemployment problem, except perhaps France. But it must be remembered that France is still continuing to maintain a very large standing army and is also owner of a powerful navy to say nothing of its air force. These tliirea defence organisations must absorb a great many men, and this probably accounts for the fact that there are few if any unemployed in France. Unemployment may be •said to be general, if we exclude France, and yet there is an over production of many commodities, that is to say the supply exceeds the demand. Practically allj foodstuffs' and many raw materials are in excess supply and this should mean lower prices. These no doubt are lower than they were but they are apparently too high for the masses whose purchasing power has been greatly impaired through slack trade everywhere.

But producers of commodities are trying various schemes to arrest the onward course of prices, but they are not meeting with much success, Since the close of the war most countries have set out to produce and export but not to import, that is to import as little as possible, and with the aid of high tariffs this is being accomplished. This one way trading scheme is no doubt to a large extent responsible for so much unemployment in the world, but high tariffs, while restricting the interchange of trade, is much to be deplored, and if moderate tariffs existed it would be better for us all, but with every country seeking to manufacture for its own markets high tariffs are'inevitable. But this is . not the main cause of unemployment for there must, be some other contributing cause. Soviet Russia is to-day a parish ainong nations, for she is heartily distrusted and she is pactically penniless. Russia , poss-essese normous resources, and if she were not in the grip of mad men he would be in the comity of nations.. The question is does the absence of Russia as a trusted trading country affect the position PObviously it does, for if Russia were doing her full share of trading there would be larger business for everyone and more work for all. Russian trade, such as it is, and it is mostly imports, is‘being financed with loot from the late Czar’s palaces and loot from the various churches. The .Soviets believe in a Godless campaign. when they need more funds for their world revolution propoganda, a world, revolution thqt refused to materialise,- and for foodstuffs and materials. When Soviet Russia regains sanity and takes its place in trade with other nations, unemployment should become less pronounced, AMERICAN WOOL CONSUMPTION. The use of wool in the United States showed a substantial increase in 1929. During the ten months ended October 31 tire quantity consumed totalled 141,300,00011) showing an advance of '"0,800,0001b on the figures for the same period of 1928. From the Australian standpoint the chief reason for gratification, is the fact that merinos ranging from 64’s to 80’s quality showed the greater increase, the advance run r irig into 47,400,0001 b. ' Consumption reached its - highest point in October, totalling 52,900,000 11) being 8,200,000 lb above the same month a year before. The recent levels at which wool has been bought in Australia will make the position difficult for American growers, despite the recent increase in the tariff and may lead to decreased production in that quarter. With the great increase in industrial activity and high wages in the factories in the States, the cost of growing wool has increased enormously. Probably for that reason sheep owners were successful in getting the traiff increased from 15* per lb on a clean scoured basis to 17d, though manufacturers strongly opposed the rise. With the crop in prices for the raw material growers are in a worse position than they were before. If the situation results in less wool being grown, competition from America for the Australian clip will benefit; Such a development, will rectify the situation seen for some years, in which imports of manufacturers from America have so vastly exceeded in value tho'exports of the products of the Commonwealth to that country.