PRIVATE ECONOMY

Otago Witness, Issue 4028, 26 May 1931, Page 64

PRIVATE ECONOMY

NEED FOR REDUCED CHARGES APPEAL TO BUSINESS MEN. At the monthly meeting of the Council of the Dunedin Chamber of Commerce last week, the president (Mr A. C. Cameron), in opening a discussion upon the need for economy, stated that he wished to remove an impression which was held by a large section of the community—namely, that the civil service and the trade union workers were the only classes of the community which were being asked to accept reduced salaries and wages. “ From what information I have.” he said, “ there are few businesses in this city that have not reduced salaries by 10 per cent., and many have bad to make heavier reductions in t!ie case of higher salaried officers. I have heard of many reductions of 25 per cent, and some as severe as 50 per cent. In many firms the partners are getting no return for the capital employed and are taking out of their business a bare living wage. In many companies the directors have agreed to accept considerably less remuneration than formerly, and in some companies the directors are not drawing fees until things improve. The number of small retailers in difficulties speaxs for itself —their businesses have suffered more than a 10 per cent. cut. The professional man in the city is no better off than the business man. The other day I asked a leading medical practitioner how things were going and got the expressive reply—“ Rotten.” Upon crossexamination I found that his income had dwindled considerably and that in numerous cases he was not rendering bills owing to the depressed state of tbe finances of his patients. Legal firms are having a very ‘thin’ time—even oldestablished ones having little work to do of a remunerative nature, and most of them are making a reduction in their charges. A lawyer remarked to me the other day that they ought to get the credit for reducing their charges, and he felt that the Law Society should advertise the fact. Much has been said in this chamber regarding the sarious plight of our farmers. I say advisedly that very few farmers can reckon on making wages this year for themselves and their families at the Arbitration Court scale, let alone getting interest on the capital they have sunk in the land and stock. Most of us present here know their position, and so I need say no more, except that I trust that the farming community will realise that the majority of men engaged in business in the city are suffering acutely and will continue to suffer until conditions improve for the farmer. I have been giving much consideration to the Prime Minister’s appeal for all sections of tbe community to study economy and to help to reduce the cost of living. The executive has discussed this matter and has considered the effect of a general appeal to all business and professional organisations urging them to make reductions in charges, fees, etc., but in the face of the position, as I have outlined it, I think you will agree that the economic situation is bringing, this about without any urge from tbis chamber. In many cases tenders are being accepted, jobs being done, goods being sold to-day at prices which show no profit, but serve to keep men employed and to reduce stock. With a full knowledge of such things as ■ I have mentioned, I appeal to everyone to reduce charges wherever possible and to give considerate treatment to those in difficulties. I appeal to employers to keep men on as long as they can possibly do so —to those who are in the happy position of having assured incomes to give employment to men by having work done which will in the normal course liave to be done sooner or later. And. finally. I appeal to the civil service, to the farmer, and to the worker to realise that we are all going through extremely difficult times and to realise that we must all tighten our belts and accept reductions to enable the country to weather the slump. Someone has said very aptly that ‘ this slump can’t be talked off, it must be worked off.’ Let us all work together in a harmonious spirit. If we do this I have no doubt as to the future of tbis country.”

Mr J. Couchman said that Mr Cameron’s statement should have a good effect indeed if it brought about the feeling for the necessitty for economy in the minds of the community. He thought that most of the business firms had faced the position, and he knew that some firms had made reductions two or three months ago. The statement should have the effect of bringing home to the worker that he must accept reduced wages and to the employer that unless he reduced his costs he must accept reduced profits. The president said that there appeared to be a feeling abroad that civil servants in being asked to accept a “ cut ” were bearing one-third of the country’s deficit. This was not so, as the country’s deficit was £20,000,000, of which the community was bearing £18,500,000. Mr Cameron's statement was approved.