INCREASED WAGES & PRICES

Evening Post, Volume CXXIV, Issue 70, 20 September 1937, Page 8

INCREASED WAGES & PRICES

<To the Editor.)

Sir—l noticed a report of the speech of Mr. Treadwell at Rongotai in Saturday's "Post" in which he says, referring to the increase in wages and salaries: "It would be recognised that it had been possible to do this solely because of the increase in prices received for our primary produce overseas and prosperity brought about as a result." Now, Sir, in the first place the prices received for dairy produce at present show a deficiency in the Dairy Produce Purchase Account of £650,000. So that is just one little item that has been overlooked. Again, the wool and meat farmers are a very small proportion of the population, and because they have had extra good prices does that greatly affect the spending power of the rest of the people? No doubt they will spend a bit more on their personal requirements, which is all to the good, and the balance goes into the bank or on overseas trips. How is the surplus to be distributed? Surely only by income and land tax, which is fixed by the Government. Did Mr. Treadwell forget this? Then again the housing scheme which is employing thousands of workers in all building and hardware trades is being carried out with fresh capital loaned by the Reserve Bank at a low rate of interest and on excellent security. Perhaps Mr. Treadwell thinks that this also arose as the result of wool and meat prices, and the Government had nothing to do with it.—l am, etc.,

EQUITY,.