The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, SEPTEMBER. 30, 193l AMERICA’S DIFFICULTIES.

Hokitika Guardian, 30 September 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, SEPTEMBER. 30, 193 l AMERICA’S DIFFICULTIES.

The world has been accustomed to envy America her wealth and isolation, ana Americans have been wont to pricre themselves on having reared a superior civilisation away from the effete confusions of Europe. But America has been affected by the economic storm that has swept over the world, and the problems of wages, prices, taxation and relief that have agitated Britain and Europe have sprung up in American life. For a long while there has been a sharp controversy over the question of wage-cutting, and arguments familiar in New Zealand and elsewhere have been used. At the head of those who would not reduce wages is the President himself, comments « northern writer. As a Republican, he stands for what has for so long been the chief asset of his party, prosperity; the standard of living of the masses must not be lowered, and therefore wages should not be touched. But capacity to pay high prices is based not on an unalterable law of nature, but on economic conditions. The latest development in the long argument in America is a substantial reduction by several of the greatest industrial corporations, which is a serious setback for the Hoover school. What the conditions have been that have led to this decision may be guaged from the balance-sheet of the Steel Corporation, one of the reducing concerns. In the second quarter of this year steel earned less than in any quarter since the end of 1914, and it was only by selling an asset and reducting depreciation allowance that the company was able to pay a much smaller dividend. It was stated in July that although the (industries represented! at the president’s wage conference two years before had, without exception, maintained existing wage scales, some were faced with the alternatives of closing down altogether and thus creating more unemployment, or seeking temporary wage reductions. -The reduction movement seems now to be an full swing. Meanwhile, little or no progress seems to have been made in framing a national policy to deal with unemployment; Tt is not even known accurately what is the total number of workless men; estimates range from six to twenty millions. The President and liis school are still frightened of anything that savours of the '“dole ” and even, without incurring additional expenditure in

this direction, the Federal Government faces p. enormous deficit. Viewing the approach of another winter, and reflecting that the Government still has the huge army of unemployed clamouring at its gates, the average American will feel very anxious about the near future