The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 1, 1931. THE INDUSTRIAL AWARD

Hokitika Guardian, 1 June 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 1, 1931. THE INDUSTRIAL AWARD

* i!>• Dominion will bo greatly mtci ested in tlio industrial award published throughout the country to-day, under the authority of the Arbitration Court, making a general reduction in rates of remuneration, including time and price wages and over time and other special payments, of ten pei centum. The employers in their appeal for a reduction asked for a drop of twenty per cent. In the close discussion of the claim by Judge I a*ei, the- application for the higher sum has been refused, and ten per cent, fixeo on, as in the opinion ot the Court a fair adjustment. The decision is sure t-o be greatly canvassed, hut it must he admitted that on the lace of it the reduction is equitable in all the circumstances. The Memorandum wvoring Judge Fraser’s views is very comprehenisve. ai.d various phases m the general situation are examined. The Judge has given very full weight to all arguments pro and con, and finally reached a decision which will .he nrroptc l, in the minds of the majority as fair in the present condition of the country, and to that extent an equitable decision. The position of trade within XmV Zealand is certainly disturbing. Every businessman must be feeling the contraction of trade now, and this may be traced • in the first instance to the fewer people now employed. If wo look round our own district, it js a fact tlmt far loss money i s in circulation, because of lessened employment, There is a degree of general stagnation which enables traders and producers to do with less hands; as the reduced income calls for economy if the weekly wage bill, is to be met, apart from the ordinary claims of the business. A revision of the wage sheet, reducing weekly expenses where a staff of any dimensions is concerned, should be heirful in creating more employment with the money saved, and that in turn will assist production, and should enable a drop in commodity priee s to follow. The Judge urges employer’s to pass on for the benefit of consumers any. saving effected in the reduction of wages, and if this he done, and consumption increases, then, more employment will be created. The figures regarding the national income on which reasons are based for making the ten per cent, reduction, are certainly impressive,. The drop in values affecting exports means a great deal to the general prosperity. In two years there has been a fall of seventeen and a half millions in the value of the exports, and in that substantial decline may be read the first cnu;le of the present stringency. The income of the individual farmer must be seriously affected, and the drop in producing value naturally affects his farm .values. Hi s holding must depreciate in consequence hut he still has to pay (when a mortgage exists) the same volume of interest and repayments. Here is hi R great difficulty, and at once arises the demand for reduction of interest. Money carries its own value for those who possess it, and applicants may borrow onlv at rates to suit Hie lender. But where the borrower already has his loan, and is unable to pay. there is the opportunity for mutual ncliustment. Through the Dominion there must to day be many farms on which loan pnvmonts lag. It, is not possible to realise at remunerative prices, aim willy nilly borrower and lender must come together and make the best arrangement possible to carrv on in the ho’-e of better times reviving. That state of affairs is verv general all over New Zealand to-day, so that the rate of interest in such cases in just what the borrower can pay, and not what ho has contracted to pnv. People of means who have their funds invested in mortgages will he havi"*" a difficult times while the present stringency continues, but with monev values falling in this way. it is not surprising there has been the demand foi wages reduction. The situation of New Zealand is going to call for a great

deni of sacrifice'. Wo do not know that any will escape the penalty, and in Home respects the sacrifice's will still have to he greater. Those in einp'oyment. ami not the employers, are the better off to-day. and if a balance could 1)2 struck all round the ten per, cent, “cut,'’ js far from being the heaviest sacrifice borne to-day. Spreading the sacriliie however is an equitable action, and those who have had already the direct cut, will be move satisfied to find others in sheltered occupations, also being called on to hear a share in the national burden. Soon there will be but a fortunate few who are a scaping the effect, of the present stringency, and they indeed will he few in number.