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Hokitika Guardian, 21 November 1933, Page 4

CoNcrj'DTNG mi article? on the adjustment of industrial costs appearing in the October issue of the re dew of Barclay’s Ban!', a writer says, “ft may be said that- the measure of success which industry has seemed in its efforts to re-establish a more equitable balance between the various factors entering into production and to re-establish a- profitable basis for its operations has in many ways been remarkable. Even in such matters as

taxation and wages there have, of late, been savings which, although they may not have fully realised expectations, have nevertheless made a definite contribution toward the improvement in the outlook. At the same time, it lias to be recognised that, in spite of every effort, the severity of the decline in prices during so short a period and the reduction in the volume of business have made it impossible for many firms to cut their costs to a level at which loss can be avoided, and in the circumstances there can he no doubt that the situation would be greatly eased if a general rise in prices were to take place. Fortunately, the trend of prices in recent months has been steadily upwards, as shown by the sterling index of the Economist, which has advanced since April 5 by approximately .10 per cent, and if this movement continues it should help to overcome many of the obstacles which hitherto have seemed almost insurmountable, provided the improvement in prices is not immediately made 'the ground for further demands for wage increases or additional Government expenditure. Such demands might easily frustrate the whole process of readjustment and prevent the re-estab-lishment of industry upon a sound basis, which is the essential preliminary to ally improvement in the standard of living. Before an adequate Case could be made out for higher wages prices Would have to idse Considerably above their present level, while taxation Is already so onerous that it is difficult to conceive of cir* eumstances in which any course, save a reduction in public expenditure, could ho justified.”