THE ULTIMATE TEST

Grey River Argus, 20 November 1946, Page 8

THE ULTIMATE TEST

(To the Editor) Sir, —I ask space for a few lines in regard to the coming elections. I listened in to Mr W. Sullivan’s address at Timaru a few nights ago, and he said he was a believer in the late Mr Seddon’s Liberal Government. Can a leopard possibly change its spots? In Mr Sullivan’s words “ultimate socialism” represents people having different views to him, I wish to say here the Seddon Government was one which used “ultimate” socialism, not only with the railways, schools, post office, pensions and advances, but also with a bank. That Government socialised railway and other works between Brunner and Springfield and between Brunner and Reefton, having stepped in on a British company who did not fulfil their obligations. This company had boys working for 2s 6d per day and prime men from 5s to 7s per day—9 hours per day. I would say: Young voters, your parents and grandparents appeal to you on November 27 to give support to the Government that has given "ultimate” success to, and human treatment for, the aged, the blind, the invalid—men, women and children of God’s Own Country! I am, etc., NEW ZEALANDER.

PAY ENVELOPE.

(To the Editor) Sir, —The National Federation of Labour is at present giving consideration to the necessity of a general increase in wages to meet rising living costs. It is less than 9 months ago that the Arbitration Court sanctioned an increase of Ils 8d per week in all awards for th’- -cry same purpose. Prior to this we had two 5 per cent, cost of living bonuses, one in 1940 and the other in 1942. It is evident that, as the present inflationary trend progresses, further wages increases will be demanded at more and more freqUent intervals and is a clear indication of the futility of.the operations of the Price Investigation Tribunal and the Economic Stabilisation Committee.

Unfortunately for the wage-earner, wages always ]ag behind rising costs. Employers, loathe to increase wages because they know that further production costs will result, hold off the demands of their employees until general dissatisfaction forces the issue. The wage-earner soon finds that any increase in his pay envelope is, wijthin a very short time, nullified by corresponding increases in prices of consumer goods while taxes on his pay envelope add to his dilemma. Any working man who pauses to think will realise that wage increases are not a cure for this exasperating problem but merely a sedative that allows the disease to

spread under a cover of scorning prosperity. Each increase in wages causes a considerable increase in the amount of money in circulation and, without a corresponding increase in production, prices must rise still further. '

Under our present financial set-up, not only the privately-owned trading banks but also the politically-con-trolled Bank of New Zealand are permitted to push million after million into circulation without any due regard to the exigency of equating money with goods so as to ensure a stable purchasing power in the community. There is a practicable and simple solution to this problem and one that the Federation of Labour would be wise to consider: “That statutory direction be given the Reserve Bank, or currency authority to use all its powers to control over the money system to maintain a stable pricelevel for commodities, thus ensuring that the money in the pay envglope is kept stable in purchasing power.” If this suggestion is adopted, any future wage or salary increase will not be for the purpose of meeting increased cost of living but to raise the standard of living of the worker and at the same time protect his earnings and savings. «

If the electors want to ensure .the sanctity of the pay envelope, they should insist that the candidate thsy vote for in the approaching general election is pledged to support this vital reform.

C. F. COUTTS, General Manager, Dominion Breweries, Ltd. ’ November 14, 1946.