A CHRISTMAS HINT

Evening Post, Volume CX, Issue 147, 19 December 1930, Page 13

A CHRISTMAS HINT

ADVICE TO EMPLOYERS FACTS MUST BE FACED

The following Christmas message to members of the New Zealand Employers' Federation is issued by its president and vice-president:—

"The close of the year 1930 finds the Government and the people of New Zealand facing greater difficulties than have been experienced for many years. It -would bo wrong to exaggerate the difficulties and foolish to minimise them. The- facts must bo faced squarely and courageously with calm confidence in our collective ability to work out our economic salvation. A simple statement of our present difficulty is that owing to a fall of prices in our export commodities in keeping with the worJd-wide fall in commodity prices, our income from exports has been reduced in the last two seasons by a total of about sixteen million pounds. The significance of the fact that the fall in prices is world-wide must not be lost sight of. If the prices of our own export commodities alone had fallen -while prices of other commodities had been maintained, the future prospects would have been gloomy indeed, but all commodities the , world over having suffered^ a proportionate price reduction indicates that the fall is due to causes other than over-pro-duction. The index number of -world commodity prices now practically corresponds to that of 1913. With the single exception of wool prices all our own exports are on that level or a little higher. Wool is lower for the time ■ being, but an improvement in wool prices is considered by authorik's to be practically assured. The significant point is that with one exception which may bo only temporary New Zealand export prices bear tho same proportion to world prices of other commodities as they did in 1913. Further, world prices in 1913 were the peak prices of thirty years. The wffrld in 1913 was prosperous.

"A return to these prices was expected to result rapidly from a. return to the gold standard. It has been longer delayed than was expected, but when it did come about it came with such suddenness that the proportionate and inevitable reduction of costs laggad far behind prices. When costs are brought into line with prices we shall be prosperous again. One most important factor in costs is interest chargeable for money. Money in Australia and in Mew Zealand is dearer than it should be because the Governments borrow so largely at comparatively high rates, and spend borrowed capital upon non-productive works. A cessation of such works and reduced borrowing by the State is an essential part of the reduction •of costs. In the meantime our external trade is showing greatly reduced returns, internal trade is racting to the same influence, and one of the most regrettable and at tho same time tho most logical" results is increased unemployment. In order to. effect essential adjustments between export prices and internal costs> cciv tain difficult and unpleasant things must be done by the Government, by financial and business organisations, and by individuals.

"The Government must cease all borrowing except for State Advances, for Public Works that will be definitely reproductive when finished, and, of course, for'conversion purposes. Also, the Government must effect all practicable economy in internal expenditure with a view to easing taxation. Business organisations of all kinds must take steps to reduce the costs of production and distribution within the I Dominion so as to bring internal prices more nearly into line with export prices. Individuals must help by cheerfully continuing lo give their best services in their own particular jobs. In politics party interests should be forgotten, and all parties should cooperate for the national welfare, sharing responsibility for decisions. There should also be -co-operation between those responsible for the administration of public affairs and those controlling business undertakings, especially as regards' minimising unemployment. Unavoidable taxation should be so arranged as to react as little as possible upon trade and business. Employers' organisations and workers'.organisations should get together for frequent discussions of their common problems, and as far as may be possible should co-operate to remove all unnecessary obstructions to industrial progress and development. , "New Zealand has faced national difficulties courageously/ in the past, and has won through. Her national resources of climate and soil still remain. Her productive- capacity is steadily increasing. There is reason to believe that prices have reached bottom 'and a comparatively small rise will have a wonderful c'ffect. After all, our commodities are finding a market, and not pimply accumulating as in some other countries. If facts are faced squarely and with courage, if all employers will pull together, if, regardless of party or individual interests they will assist the Government to do the difficult and unpleasant, "but necessary things, tlie Dominion will emerge from her present troubles with trade and commerce established on a firm and lasting foundation, and with an enhanced prestige throughout the Empire." The appeal is signed by T. Shailer Weston, president, and . W. D. Hunt, vice-president, and dated 18th December.