WAGE REDUCTIONS.

Evening Star, Issue 20720, 17 February 1931, Page 7

WAGE REDUCTIONS.

TO TUB EDITOR. Sir, —“ Advocate ” seems to infer that tho workers should believe all they are told by persons whoso interests are directly opposed to their won. A deliberate attempt is being made to persuade the workers that economic causes aro forcing a lower standard oi: living on the community. Tho writer states that wage reductions aro an absolute necessity if wo aro to promote or aid prosperity. It may ho asked, whoso prosperity? It is quite certain not the ■workers 1 . Tlio question. ot *'Uid low wages has been so often thrashed out that I feel it would bo useless to restate the overwhelming evidence in favour- of high wages aiding and inducing prosperity. “ Advocate ” refers to tho primary producer as ono likely to ho helped in his present trouble by reduced wages. Mr W. J. Poison, M. 1.. president Dominion Fanners’ Union, as reported in tho ‘ Evening Star ’ of July 23, 1923, under the heading ‘ Labour Costs,’ said; “The average farmer, is firmly convinced that tho chief cause of his troubles is the high cost of labour. A closer investigation, however, reveals the fact that labour in the ay oregate represents a much smaller proportion of tho total costs of farming expended on tho farm than most people imagine. And I have pointed out elsewhere that a 10 per cent, fall in Jam wages would nob moan anything like a 5 per cent, fall in farm costs. A 10 per cent, fall in wages would have a tragic effect upon tho standard of living? which as a result of a century of struggle the workers have built up for themselves. •, A fall of 10 per cent, in the purchasing power of tho workers would immediately react upon tho rest of the community. Trade would fall off imports would bo affected, taxation would bo affected, and there would be a general dislocation far greater than tho amount of relief tho fanners would obtain. In any case attempts to drastically reduce wages would result in serious consequences to tho whole community.” 1 think the above extract should settle tho question as far as tho primary producers’ interests arc concerned. „ , . “Advocate” refers to tho larger mercantile firms as having been compelled to cut wages, I have heard ot several who have done so but in cveiy case the savings have been used as extra profits to make up for poor business. Practically no reduction has been made in prices of commodities to the “ Advocate ” seems to think that the workers should meekly take what is given them. They should be like the serfs of tho eleventh century, glad to get what is thrown to them He grieves over the millions which lie sa\s tho workers spend on amusements A “ coolio ” standard of living would he good enough for them,in his eyes. In conclusion 1 would point out that bo did not mention tearing about the country in motor cars as ono of the extravagances of the worker, perhaps ho would nob be believed. I hero has been no attempt made to show that the present or a higher standard of liiing could nob he maintained. Our productive facilities are capable ol much greater expansion, so it seems that it is our out-of-date present system that prevents humanity getting,any rca benefits from improved industrial technkine.—l am.„ etc.. February 17. TO TUB EDITOR.. Sir,—Your correspondent “ Adyocato 3J may lio ((uito capable or ionmng an opinion about the need of wage induction to restore prosperity, yet hare ly qualified to prove who is capable or who is not capable of performing what is clear thinking upon such a question. lb would perhaps bo quite reasonable to assume that we all might agree that something is wrong somewhere in our economic system. Something is laetinm and the majority try to find ecusolution in tlm thought that the (picstion is nob onlv national, but international, and apparently beyond tho powers that be to find a solution. Iho Labour representatives believe that the problem can bo solved and will bo solved when tho majority of tho community give a greater display of de»u thinking. Of course this is the rub, and the point whereby wo, must decide who is most capable of giving a display of clear thinking Let ns take just a few ot tho questions which confront ns to-day. The Prime Minister has declared that there aro in this dominion to-day, or were a fortnight ago, 17,000 to 18,000 unemployed' Is this tho result of clear thinking? There aro thousands of young boys and girls to-day with no hope of obtaining work oi any kind. Is this tho result of clear thinking? There arc simps and warehouses, packed to overflowing‘with all tho essential needs of life, while thousands lack essential needs oflifc. Is this clear thinking? I think that 1 have enumerated sufficient to indicate to tho average intelligent person that instinct, more than reason, is the greatest factor in tho battle of life. The motive for reducing the wages is to reduce the standard of living, or, in other words, to reduce the consuming power of tho people. Scarcity, not abundance, of wealth might justify such action. Now wo find, in the Year

Book, 1031. page 02G, that the people of this dominion have created, per head, tho greatest record that this dominion lias ever known in wealth production, 28 per cent higher than has ever becu attained before, for which, in no small measure, credit is duo to tho workers. Unfortunately, tho legal owners of this wealth have not realised from tho foreigner tho price that they hoped to realise by twenty million, so wo are told, which may or may not ho true However, the owners of this wealth cry out for a national sacrifice, tho simple' minded say it is inevitable, it lias got to come. On the other baud, tho communities that have obtained that produco have received their first wave of prosperity; they will convert tho raw material into manufactured articles and return them bade to tho dominion at a price that will allow the wholesale and retail associations to say “ Behold tho cycle of prosperity.” ’ Tho wago worker will _ attempt through industrial organisations and Arbitration Court to obtain his share of that prosperity. There surely is some madness in our reason.’or perhaps, reason in our madness. Time alone, however, will prove that tho blind Samson of labour who is to-day called upon to undergo needless suffering will arouse from his slumbers and shako the pillars of society and demand from tho people u far greater display of clear thinking toward* the question of a more equitable distribution of tho wealth produced.—l am, etc., 11. Haiuusox. February 17.