WELLINGTON NEWS

Hokitika Guardian, 10 June 1930, Page 5

WELLINGTON NEWS

UNEMPLOYED HEM EDI US

Correspondent.)

WELLINGTON. June 7

The remedies for eliminating iinemployinent are many and varied, but they have not finished, and it is doubtful if we have reached the iast of them. At the annual meeting of the A. and P. Society the President, Mr .James Bugg, attributed many of to-day's remedies to the shortage ol gold. .This to some extent is quite true but it does not wholly account for the adverse conditions. .Mr W. Dowuie Stewart, in dealing with this problem directed attention to the position in the United States. It is true that there is an abundance of the yellow metal- in America, but wluit .Mr Stewart overlooked is that the Federal Reserve system sterilised a certain proportion of its stock of gold, thus (.musing an appreciation ot tlio precious metal from 40 per cent to about (jO per cent, and tin's movement, according to Professor Gustav Cassell, was responsible for the world slump of 1920-21. There was a recovery from this crisis, and perhaps all would have gone well if the .Federal Reserve system did not- set about breaking the speculation on. the New York Stock Exchange. It is not the function of a central bank to uiuJertako such a task, and if that wild gamble was allowed to run its course it would have broken itself. But the Federal Reserve system in its self-imposed task pushed up the discount race to G per cent, and caused a 10 per cent fall in the price of commodities, It must always he kept in mind that the money market is now controlled by the United States and American bankers are lacking in world experience. They have made mistakes and will continue to do so. Professor Cassel contends that it is llie American misuse of it powers and its mistaken monetary policy that is responsible for the distressing economic conditions. There is, however, nothing to be gained by searching for the causes of the slump, the slump is here, as it is in other countries, •and the sooner we face the position the sooner will we overcome the difficulties. Other countries ar e taking strong measures to deal ' with the situation, and the one that succeeds first will reap the benefit. Air Stewart referred to the Arbitration Court which he described as the second greatest handicap the farmer had. The rigid fixation' of wages was not only dertimental to farmers but to the whole community and it may he said that it is detrimental because it is opposed to economic law. ’ iM'r (Stewart admitted that it was the cause of much of the uuem'ployment fin ! the cities. Air Stewart was of the opinion that the Labour Unions and Secretaries knew of the work available in the country, but they could come to no arrangement with the farmers because of the Hiatus between what farmers could pay and what the workers asked. In effect the workers desired to sell their labour at a price above the market level, and they are no doubt fortified by the fact that the rates fixed by the Arbitration Court are also above the market level.

Mr Stewart believes that the complete abolition of compulsory Arbitration would be found to be a less effective move than was popularly supposed, The abolition of compulsory arbitration may be discussed as a practical question for no politician, and for that matter, no Parliament would tackle the subject, Furthermore, to take such action would he to play into the hands of the Labour Party who would be certain to have a majority after the first election held after compulsory arbitration is abolished. The first step in dealing with the Industrial Conciliation and Arbitration Act is to abolish preference to unionists, which is neither just nor right, and against the inherent right of the individual. Everyman has the right to sell his labour to the highest bidder, and the employer has the right, or should have the right ot engage the best and most efficient labour in the market without regard to his position as a unionist or to his religious or political creeds. Preference Ip unionists put very extensive and autocratic powers in the possession of secretaries and some of them use jthat power vindicatively. If this objectionable feature of the Arbitration system is abolished the best workers will withdraw from the unions, and they would earn more because they would he free to do their utmost and’ earn as much as possible.

Preference to unionists is beneficial to the indifferent and incompetent workers and is hurtful to the community because it is uneconomic and wasteful.