WAGE REDUCTIONS.

Auckland Star, Volume LXIII, Issue 93, 20 April 1932, Page 6

WAGE REDUCTIONS.

As stated in your journal recently, any further reduction in the wages of the mass of the lower-paid -workers will probably lead to very serious trouble throughout the Dominion. There is no sense in reducing the wages of the masses of the workers, who are already on what may be termed the bread-and-butter line, for the result is simply to compel these workers to do without things which they now manage to purchase. This reduction in the purchasing power of the masses reacts upon trade, as the turnover is thus tremendously reduced, and consequently less profits are made, with the further result that more employees are thrown out of work. May I make the following suggestions? The public debt amounts to over £•260,000,000. Let the Government compel the lenders of this huge amount to accept one-half per cent less interest per annum. This would save £1,300,000 per annum in interest, and would be sufficient to pay the interest on a loan of £20,000,000 and provide a sinking fund as well. This loan would release the amount mentioned from the banks, and provide a fund for the Government at no expense to the country. As the cost of living has come down considerably, the lenders would be receiving as much in value as they did before, and they would he rendering enormous assistance in restoring trade and confidence. Surely _ it would be as wise for the lenders to be subject to such reduced interest as to have further taxation forced upon them. COMMON SENSE.