The Otago Witness WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, JUNE 2, 1931.) THE WEEK.

Otago Witness, Issue 4029, 2 June 1931, Page 45

The Otago Witness WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, JUNE 2, 1931.) THE WEEK.

“Ntinquam allud natura, allud sapientia dixit, •* -JUVSNAL, "Good nature and good sense must ever join.”-• Popb.

The Wage Reductions.

The general order issued by the Arbitra-

tion Court reducing by 10 per cent., save for certain exemptions, the

wages paid under awards and industrial agreements contains no surprising features, unless it be the fallibility of the reasons advanced by Mr Monteith, the workers’ representative, in support of his dissention front the judgment. One looks in vain in Mr Monteith’s memorandum for any cogent argument that would support his vague contention that the depression—the existence of which he cannot deny—is “ caused by a maldistribution of national income.” The phrase is sheer Socialistic flummery—an interesting subject for academic debate, but useless as a contribution to the subject that the Arbitration Court had to consider—namely, present economic conditions in the Dominion. The facts are plain—that our national income has fallen by many millions, that unemployment is unprecedented, that the activities of every branch of industry are being curtailed and even their continuance threatened by high costs. The remedy is transparent, though admittedly severe—the reduction of these costs. Certainly the spending power of the worker will be reduced by the order, but not, the court is satisfied, to the point of inflicting hardship, and the effect that a reduction in spending power may have upon the shopkeeper and the manufacturer should be counteracted by the reduced wages they will have to pay. Nobody, it is safe to say, welcomes the wages cuts, but there can be no use in kicking against the pricks. It must be remembered that these pricks have long since burst New Zealand’s bubble of prosperity, and that with our income from overseas reduced w r e have to make an adjustment within the lower level of income, or else drift into a position similar to that in Australia, where the recommended wages cuts are not 10 per cent., but much more.

The Progress Inquiry.

The conclusions reached by the court

of inquiry which investigated the circumstances of the wreck of the Pro-

gress at Ohiro Bay a month ago have not resulted in a whitewashing of those who were concerned in the disaster as responsible persons with a duty to a vessel in obvious distress. On the contrary, the court has censured gravely the master of the tug Toia for the lack of initiative shown by him, and the master of the Terawhiti for the lack of a sense of duty. The difficult nature of the task of the vessels can probably only be appreciated by those who are familial- with the coast on which the Progress went on the rocks, but_ the court, by visiting the scene, made itself familiar with conditions, and its strictures will be upheld by the public. The most amazing feature of the wreck was the action of the Toia in abandoning the Progress in daylight, and the court has referred to this incident in no half-hearted manner. It is only just that this criticism should have been made, for it would not appear that all was done that could have'been undertaken for the salvaging of the Progress, and that it is on this account that a tragedy was enacted which cost four

lives. The whole affair was, indeed, something of a tragedy of errors, commencing when the captain of the Proegress refused a tow from the Opawa after. the. loss of the vessel’s propeller. The inquiry will have served a useful purpose if, by its necessary though regrettable findings, it impresses upon New Zealand mariners the obligation resting upon them to give of succour to vessels in distress in no unequivocal manner.

Australia’s Need.

The conference of Australian Premiers

is perhaps the first definitely encouraging move that has been

taken in Australia for a long time to check the appalling drift of Commonwealth finances. The political activity in the States, under the inspiration of Mr Lyons and other enemies of the policy of laissez faire has doubtless been a powerful stimulant to the Federal Labour Government and the New South Wales Labour Government, which realised that their days were definitely numbered unless something were done to restore public confidence, and the other State Governments have been anxious for months to reach some finality as to the future. At the time of writing, the conference is more remarkable for the spirit of unanimity that is revealed than for anything that has been definitely accomplished, but it appears that there is every likelihood of the recommendations of the committee of experts being approved. The acceptance of the principle of a 20 per cent, cut in Government expenditure would, no doubt at a great sacrifice, do much to restore stability in public finance, and the interest reduction proposals, though they have not found favour everywhere, commend themselves to attention. It has to be recognised that a desperate illness requires drastic remedies, and the position of the Committee is indeed approaching the desperate. What is done cannot be judged by the standards of prosperous times, or even of what is advisable in New Zealand, where conditions are so much better.

The Hauraki Result

The Hauraki by-election, which pro-

voked most lively interest throughout New Zealand, provided a poll

that would make it difficult for the political forecaster to speculate upon the result in its possible significance in view of the coming general election. The constituency may be fairly said to be a “ representative ” section of the New Zealand community, and there is no doubt that the political leaders threw their -whole weight behind their respective candidates. The election might, from that point of view, be therefore regarded as significant. On the other hand, in spite of the attention that the by-election drew in other constituencies, many of the electors in the Hauraki district who voted in the last general election appear to have not taken the trouble to vote on this occasion, as the poll is considerably smaller. The result is most interesting, perhaps not for the return of a popular Conservative to the House, of which he can be expected to become a valuable member, but in respect of the positions of the candidates of the other parties. The substantial Labour gains indicate a reaction against the economy legislation that the United Party has sponsored, and suggest, incidentally, that there is no apathy among Labour supporters, while the very small number of votes cast for the Country Party candidate, who is president of the Auckland district of the Farmers’ Union, suggests that the farming community does not approve of their union entering the sphere of practical politics. The most useful ‘lesson that may be taken f’oin the by-election is, perhaps, the necessity that -when the general election is held the electors of New Zealand should make a point of recording their vote for whatever candidate appeals to them, else they may find apathy producing unfortunate results.

The Political Future.

The result of the by-eleetion. need not

be regarded as especially important, but it does serve to introduce an

additional element of uncertainty into the situation of the Government when the session commences on June 25. So far, through the alternating support of the Labour Party and the Reform Party, the Government has not only retained a precarious hold on office, but has accomplished most of its legislative purposes. With the assistance of Reform it has enacted the first part of its economy proposals to meet a decline in national revenues, but it now has to start operations as it were upon the other end of the see-saw, in order that a balanced Budget may be achieved, or at least approached. In other words, expenditure having been decreased, taxation must now be increased, the total to be thus made up being over two millions. Mr Holland has now expressed a tardy determination to vote out the Government at the first opportunity, forgetting that his party actually kept it in office for nearly two years, and Labour may be expected to find the Financial Statement proposals scarcely less acceptable than the wage reduction legislation that was so bitterly opposed, for it is evident that direct taxation proposals, which Labour will doubtless welcome, will be supported by increases in certain Customs duties, and these will be resisted.

as tending to raise the price of living. The session, then, may be said to be enveloped in a haze of uncertainty, and the immediate fate of the Government must rest in the hands of the Reform Party.

Wheat Prices.

The proposal for a reduction in the

’ scale of protective wheat duties, which the Government is to submit to

the next session of Parliament, has brought forth a united protest from the main wheatgrowing districts—a protest, indeed, which deserves very earnest and, it might be added, sympathetic consideration. It is represented by wheatgrowers that it W’ould be disastrous to them to sell their wheat at 4s 6d per bushel, the proposed basic price, and unless the Government has reliable information to the contrary, this must be accepted as being the ease. Certainly it would be little short of disastrous if wheatgrowers were, forced into some other form of farming, or off their holdings altogether, as a result of the reduced duties. The present duties and the proposed duties are expected to give our growers adequate protection against foreign wheat, in order that New Zealand may not become dependent on supplies from abroad, and thus subject to exploitation. At a time such as the present, when there is a surplus of wheat abroad, this means that bread in the Dominion is dearer than it would be were the market wide open, but it prevents a recurrence oi such manipulation as we have endured in the past when wheat was scarce. It is desirable, even imperative, that the price of bread should be reduced, but jhe Government could still bring that about and accede to the growers’ request that the basic price should not fall below 4s 9d per bushel on trucks. So long as a bona fide ease is established, the Government should be prepared to meet this request.

“ Made in New Zealand.”

It probably would be safe to affirm that

the majority of Ne'V Zealanders are by this time in sympathy with the efforts of the manu-

facturers in the Dominion to encourage a demand for New Zealand-made goods. The advantages of keeping money in the country, for the benefit of the workers of the country, scarcely require elaboration. New Zealand secondary industries now employ close on one hundred thousand workers, and there is no doubt that many more can be absorbed who are at the present time a charge upon the community as added support is given to the industries. Such campaigns as have recently been conducted throughout the Dominion to educate the public to the range and suitability of New Zealand goods are valuable in creating a sentiment of goodwill, but there is always a danger that the actual results in a stimulated demand for local manufactures may be negligible unless the public have an occasional reminder. With this purpose the Manufacturers’ Federation is issuing pledge cards which those who recognise the benefits of supporting New Zealand industry are being invited to sign. All that is demanded of the signatory is an undertaking that he will give preference to New Zealand goods provided they compare favourably in quality and price with similar imported articles. It is not an unreasonable demand, and if the cards fulfil their purpose of keeping this resolution before the New Zealand public they will be performing a work that will benefit not only the manufacturers, but the people of . New. Zealand as a whole.