“PALPABLE ERROR”

Hokitika Guardian, 15 September 1932, Page 8

“PALPABLE ERROR”

'SALARY AND. WAGE. REDUCTION. IS OPINION OF MR H. ATMORE. CHRISTCHURCH, September 14. “I am convinced ■ that the reduction of wages and salaries stands to-day as a palpable error, and that more purchasing poxyer must be given to the people of the world, so that the power of consumption will balance production and retrieve unparalleled poverty from existing side by side with unparalle.ed plenty.’* : ' y ) Ibis stateiheilt was made]to-day by My H. Atmore, Independent M.P. foi ifelson arid < former Minister of Education: iri : the Uiiited Cabinet;* who is engaged in' 1 a Dominion-wide campaign on the curren'ey reform question.

■ In: ail interview Mr Atmore said he believed that the trouble iri the world tb-hinyywas almost entirely dub tri the iriadeitiady and out-of-date nature of thA currency and monetary systerii genprrilly, and with the recognition of the urgentAfabcessity , for, reform iii these matters he had begun a Dominion caihpaign. He had already''addressed a, humbfer of. meetings in ' the North. Island, including one in the Wellington Town Hall,: ai which 2000 'people bai iiecl'a fekolufion ! affirming the riecebsity for monetary reform.

Non-Party Standpoint. Mr Atmore said that at his meeting on Fridriy evening it was his iriteiition to deal with the economic situation and the recent legislation, not froth tire viewpoint of Rarty politics, but treating them as broad national issues. He' would make inference to the'resolutiotts of the Ottawa Conference and also to the foolish: policy pursued by the Government in imposing excessive' itaxdtibri which to-day was being paid largely drit of capital. The reduction of wages and salaries, he declared, had still further reduced the purchasing priwer of the people at a time when greater production and 1 increased purchasing power was 1 necessaty. 1

'“No inedibal practitioner,” said Mr Atmore, “would prescibe more bleeding as a cure for pernicious anaemia! but the Government, by its excess taxation and deductions of wages and salaries, is'certainly practising bleeding on a country that is suffering from financial anaemia?’

The rbsults of the reductions of wages arid Salaries last year, he eontiriued, should have convinced exeryone that that xvas not the way back to prosperity. Einstein, the great scientist, who gave to the xvorld a nexx conception 'of the universe in his :thcory of relativity, had dealt with fhb present depression in the folloxving words:—-“We must see tliat the priVchriMftg potver of'dhe'people is distributed by salaries "arid xvages which must never fall below the value of aggregate' production.’’

National Currency. 'f‘Xhe question has been raised as to whother one country can help itseli out. of--the present trouble,” said Mr Atriipfri,' .“but as every currency in the World is a national! eiirrehcy; there ho reason why a bettering of our .conditions should not'take place. Some of’ thb. leading economists of the xvorld have ’ : declared that there is no need frir ariy country to xvait for international actioii. It is* significant that Winston Ohrirrihill, who, as Chancellor of the Britisji Exchequer in 1925, hailed 'with' delight the return to the gold standard, ,-rioxv states that gold has sabotaged ex-cry form of human effort and has depreciated every service xve can render oul'seFves.

“Many other authorities could he quoted to shoxv the revulsion of feeling agkinst the domination of gold, and it is higfaificant that ih‘ the United States, wliere over one-third of the gold in the 1 world is held, the percentage of unemployed is giteatir thari in almost any otlier corintry. The purchasing poxver of;the people riiust 1 be' as it is only through increased consuihption. that xVe can reach prosperity. “Arthur Kitsori,' fli'e well-known xvriter on currency subjects, state's: — ‘Those who are waiting for a trade rexdval before alloxving an increase in the x'oiume of currency xvill continue to wait until Doomsday! Demand induces supply, and money in the hands of those’ needing goods’ constitutes demand? . ’ ‘ ' ■

“It is interesting to note that the eminent .Professor Gustave Cassel, of Sweden, has sta't'ed that the present depression is not due to the xvorking of sponstaneous causes bevorid oiir control, but to the xvorking of a policy deliberately framed for the purpose of loxveririg prices so as to enhance tlm vaTrie of t|ie monetary unit.” Asked xvhat he thought of the prospects ‘of the present Government enn--tiriumg in office for its" fnh term, Mr Atmore said that he was convinced that before the end’of next year there would be 'either a realignment of parties or a general election. He did nr, think there ! was any prospect .o p the present Parliament running its full term.