WELLINGTON NEWS

Hokitika Guardian, 6 January 1931, Page 3

WELLINGTON NEWS

FACING REALITIES

(Special Correspondent). WELLINGTON January 3. There have been, and no doubt still exist a good deal of pessimistic talk about the slump. And this futile chatter disclosed most by men who begin their talk with the preamble “I’m not a pessimist,” and forthwith express the most pessimistic opinions. Everyone knows all about the depression, the number of unemployed, the slackness of trade and all the other formidable things that make up the

stock-in-trade of the pessimist. Con-

stant repetition of the slump and its effects can do no good ; on the contrary it is bound to do a great deal of harm, for the psychological effects will in the long run be very harmful. Lt would be , very detrimental if people got into the habit of being depressed or believing that an economic depression is a settled affair. We must drop all reference to slump

and think of recovery. There are silver linings to tbe dark clouds, even those painted by the chronic pessimists. Depression after all is a matter of adjustment, that is to say we have to adjust ourselves to the new economic conditions, and those adjustments are actually taking place at a time when the, calamity howlers are loudest in their bowlings. The Government has taken a step in the right direction by appointing an Economic Advisory Committtee. People will regard the composition of the committee as 1 udi-

"1 oils, for which they can scarcely be blamed. 'there is need for such a committee at the present time, but that committee should be composed of the best brains that we have in the country. Even the committee of politicians appointed by the Government can do some good, although much must not be expected. The Government will soon discover that something stronger and better is needed than the committee it has set up,and as the Ministers are just as keen as anyone else in the community to deal with the subject in the best interests of the community we may trust them to enlarge their efforts and call in outside assistance to further their objects. The worst things that we have Jo contend with are the foolish examples that are being set by the Labour Government of Australia.

The farmers have begun their “rallies” and several have yet to be held. At their first rally, at Hawera the chief speaker,- Mr W. J. Poison, M.f did not appear to be very particular about the accuracy of his statements, and file resolutions carried were not dear enough as to what the farmers needed. That there should be reductions in the Civil Service beginning with the salaries of Ministers and members of Parliament, and rationalisation of departments is the general opinion. The one big obstacle in tin? opinion of many of a good many people is the Arbitration Court and its awards and preference to Unionists. . The farmers desire to see the Industrial Conciliation and Arbitration Act repealed, while in. Australia, and especially in N.S.W., the Labour Governments are endeavouring to strength on the power of tbe unions. It must not be forgotten that compulsory arbitration originated in New Zealand, and for over 30 years we have worked under the system, to abolish the system would.raise a great many new and difficult problems which may prove more difficult of solution. In advocating tho repeal of the Act the farmers are not doing themselves or the community any good.

The Act is by no means perfect, but in reality has not been fully tried out. .It lias often been said that the Act has proved more or less acceptable ;o Labour because the Court has consistently raised wages. If the farmers and employers operating under award consider that it is necessary now to reduce wages and to bi iug them into relation with costs of production it is their duty to appeal to the Court for revision of awards. Until that is done in a general way it would scarcely lie fair to condemn the Act. It may lie that we may ultimately have to adopt the course suggested by the British Economic Commission to Australia and institute a compulsory conciliation system instead of compulsory arbitration. The farmers who demand reduction of interest on overdrafts and mortgages and at the same time they require cheap credit. Money or credit, like wool, butter, rubber or copra, has its price, and this depends on the old law of supply and demand. Just now the demand for credit is greater than the supply and so interest rates remain stiff. The farmers have already done them selves harm by suggesting a moratorium. Capital is. very timid, and the word “moratorium” scares capital. At one time in the history of the Dominion broad acres were regarded as first class security for- a mortgage, nov the mortgage of farm lands is a difficult business because capital is not altogether confident of the security. Moitgages and overdrafts are oidinaiv business«deals, and the State should not he asked to interfere. Money "ill cheapen here later, for it is at present very cheap in the chief monetary centres of the world: :