AUSTRALIAN FINANCE

Nelson Evening Mail, Volume LXIV, 14 January 1931, Page 2

AUSTRALIAN FINANCE

NEED OF WAGES ADJUSTMENT SIR JOSIAH STAMP’S VIEWS LONDON, Ist January. “Australia must realise that she cannot get rabbits out of a hat. Unless there is some immediate adjustment, the position will rapidly grow worse,” said Sir Josiah Stamp in an outspoken interview. Sir Josiah Stamp, besides being a director of the Bank of England is head of the London, Midland and Scottish railway, the directors of which recently cut their fees 25 per cent, as a lead to trade generally. “There has never been such a rapid change in values,” he said. “The whole price structure is crumbling. There is_ no alternative but squarely to face the issue. Either credit must be put on its proper basis or we must resort to charity. As long as wages remain up unemployment will further increase.” Asked about the possibility of Britain’s assisting Australia, Sir Josiah answered: “We can only help people who help themselves. Australia must balance her Budgets and adjust the position generally before she can look to Britain.

“Australia can only follow the wise but extremely disagreeable plan and be prepared to swallow the bitter pill. It is imperative that there should be a more rapid movement of wages to meet the situation, which is the same with all democracies throughout the world. “The gold-standard nosition is like being at sea. We would like the sea to be smooth, but we cannot have it. Therefore, we have got to adjust our ship for rough seas. Moreover, it must be remembered that there are two sides to the question. Our job and the rest of the world’s job are one. One side cannot be adjusted without the* other.” Asked whether his directors’ lead was influencing the position generally, Sir Josiah Stamp replied: “Ours is a mere drop in the sea. but the succession of reduced dividends shown bv the latest company reports will probably lead to other reductions in the near future. Britain is beginning slowly to awaken to the need for reducing wages. Perhaps there is more awakening lire than in Australia, where people are further removed from the realities.”