CONSTRUCTIVE ECONOMY.

Taranaki Daily News, 4 February 1922, Page 12

CONSTRUCTIVE ECONOMY.

PRICES AND WAGES TOGETHER. CONSULTATION AND CONFIDENCE. Our Dominion has had a good time of it. High prices and high wages and general high living was for a lengthy period the order of the.day. Now the time has come to “pay up,” and the trouble is on us. Whether we like it or not, the call is on the country to settle down and economise. It may well be asked, however. whether we clearly understand what economy means? There can be a cutting down of costs which will leave us ho better off because the Services are cut out with the reduction made in costs. To starve productive enterprise is neither constructive policy nor real economy.

The requirement of to-day is for well-thought-out plans of readjustment. (Before cutting out services those in control should be fully Satisfied either that are not essential or that the returns from all sources affected by these services are wholly inadequate.)

In his annual address, Mr. T. S. Weston, president of the Employers’ Federation, said: “How soon New Zealand is to pull through the present depression, the severity- of which cannot be doubted, depends first upon the co-operation of labor with employers.” With that statement we agree. Unfortunately we have not always found the employers willing to co-operate with labor. Mr. Weston further says that “everyone should concentrate on a reduction of prices.” In this is conveyed the idea that only by the cutting of coSts can we hope to mak£ proper recovery in our financial circumstances. Philosophy is very well, but in the application We have to deal with the immutable factor of human nature.

Laborites say “lower prices but leave w’ages alone”; employers say “wages must come down but the prices of our products should be maintained.” If We could secus simultaneous change towards the lowering of wages and the price 'f the articles which labor requires there should be no ground for complaint. The owners of labor power and the owners of commodities for sale are both faced with the economic guillotine offering to cut off their necessities, whilst their mutual politeness of “you go first” i* really embarrassing. We are satisfied that just as there was an all-round inflation during the war so we cannot escape a general deflation of prices and wages. In the efforts of the Government (commendable in themselves) and the multiple* industrial and commercial activities directed towards readjusting values, both of materials and human services, the danger is that individuals may suffer severely by forced solutions lacking breadth of thought, due consideration of principle or allowance for proper consultation. If our memory, serves us right, some little time before the holidays it was suggested by Mr. Weston that a conference should be called for the purpose of considering whether simultaneous reductions of price*; and wages might not be effected. Hie plan, we think, is worth attempting. If representatives of labor, employers, producers, financial interests and the Government were brought together for candid consultation on these important questions the information that would be presented at such a conference would, we believe, have good effect both on tho.Se participating in the conference and the general public.

We have just read the official fepott of a most important, National Industrial Conference called by the Canadian Common wealth Government. This conference was fully representative of the employers, wage-earners, agricultural, public services, banking, the Government. and the general public. The report of proceedings shows that it dealt with vital issues in economies, trade and industry affecting the life of that great Dominion. With the serious financial and industrial problems that out Dominion has now to meet, our opinion is that a policy of the frankest consultation and full disclosure of the real facts of our situation is the wiseat course that can be adopted. Labor, the public servants and the public in general will face losses and work or with far greater confidence if appraised of the full faets and made cognisant of the justice oj the demands made ujoh them.

This session of Parliament is not o-oing to settle all our financial troubles, and °we urge that the Government should call together a representative conference of business and labor representatives to review the present situation with a view, if practicable, of steadily lowering prices and wages together* so as to ensure greater activity in the various fields of industry, trade and commerce. Much discontent ahd antagonism on all sides is diie to parties knowing one side only. We invite.the Employers’ Federation and labor unions to join us in urging this fuller consultation, as we are confident that all would leajn by it and the general welfare of our country be thereby advanced.

(Contributed by the N.Z. Welfare League.