CASUAL COMMENT

Hokitika Guardian, 14 December 1935, Page 2

CASUAL COMMENT

PASSING EVENTS

(By Observer)

The Labour Ministers are getting into their stride, ail being eager to excel. The Labour policy v'as a budget of promises, but it is found already they are not to be too easy of realisation. That is just as well. All the good things arriving at once might be too much for the best effect. If overseas folk saw New Zealand suddenly developing into a Utopia, there might be such a rush to the country that it would be impossible to make all the good things in store go round. Nevertheless, some of the Ministers are setting out on promising lines. The attention promised to the gold industry by the Minister of Alines will be pleasing to Westland. After all this district did for the rest of New Zealand in drawing thousands of population to the country by way of the early gold rushes, there is a debt of obligation to search further for the hidden treasure which science has indicated still remains to be worked. A mining revival would be a great aid to the progress of the Dominion again.

There is rather concern in some places as to how Labour is to find all the money required to honour its promises, particularly if certain income collected easily and automatically at present, is dropped or reduced. There was quite a good hint in a London cable dated December 7, which said : “In a trade review city business men agree in paving a tribute to the amazing skill of the British Government’s financial operations whereby, despite the unfavourable international situation, it issued the Treasury bonds at an interest charge lower than the cost of printing currency notes. The bonds are welcomed on the money market as Treasury bills and are at present yielding a bare half per cent.” This suggestion to avoid issuing paper currency, and realising the bogey of inflation, is quite a. good one, and would even be a good substitute for a capital levy, which might be in the offing later. To borrow money at a lower cost than one can print currency, is some indication of the strength of the British financial administration. That happy state of affairs suggests that the Labour Government here should keep in close touch with the British Treasury policy to ensure sound finance. The transfer of bank funds to New Zealand as indicated by the Reserve Bank returns will he a useful aid to credit in the Dominion up to a certain point, a,nd should afford a. degree of elasticity for Government expenditure within proper bounds. There is, however, the point to be considered of the cost to the Government of the exchange premium now being availed of ■as a. business matter by the banks. The financial situation grows interesting. It is here perhaps where the banks may get some of their own back complained of in respect to the gold transaction. The new Minister of Finance has a delicate situation to deal with regarding the manipulation of the exchange rate, because all factors, including the position how Australian trade would be affected, arises. However, the country’s trading is to lie helped also with the better wool sales to foreign countries, supplying new money in considerable volume, even if there, is the premium to be taken into consideration. The sum of these monetary transactions should place more credit at the disposal of New Zealand, and if the wave of better times rolls in, there will be the money. available to take advantage of the new openings offering. The Christmas bonus for the unemployed is estimated to run into a quarter of a million cash. This is certainly a very generous gesture, and show-' the i strength of the fund, which was built up by the late policy. There is just the fear that with so great an outgoing. : bv way of gratuity, the treasury chest will be rather bare thereafter, and there may he some scratching to keep up relief pay in the immediate future. The Labour Government appeared to decide to be generous before first considering how the finance was to work out. It would appear more will have to lie raised by taxing the wages paid, if a higher level is to he maintained, and all commitments to be honoured. Finance is to he the crux of the ability of Labour to govern. The Minister of Mines gave some hint of that when he favoured repealing the gold tax, but he said it was a financial question tor ilic .Minister of Finance to determine. y that Minister is to have the power of veto on the generosity of his colleagues, -om'e of the promises will be hard to discharge very readily. Borne was net built in a day, and new Governments cannot create in fhe twinkling of an eye.

The situation in regard to the war i,s perplexing. On the battle 1 routs excepting for the a’.r raids in regald to which Italy has much mechanical mastery, there is practically a stalenun. Does it portend an early peacer Negotiations are proceeding, and Britain laid almost a first-c'ass political crisis this week, due to the rumours going about. liTven Mr Jtden’s clear statement, and Mr Baldwin’s cryptic remarks, p.ou’.d not avoid a decision. But something is transpiring behind the scenes, and revelations will come in due course, if folk will have patience. 'lt should be worth a good deal to stop the mad action of Italy, and Britain may surely be credited with doing what is thought best in all the circumstances. Britain lias become greatly involved actually. The leading part played has lost the friendship of Italy in trade and intercourse for the time being. There is the cloud, too,

over Egypt due to the anti-British party seizing the present state oi affairs for disquieting action Britain, too, desired to do the right thing for Abyssinia, and at the same time must temperise with France so much directly involved with Italy. It is a very ticklish situation for Britain, and her statesmen must be given time and support to work out the intricate problem.

There is another angle to Britain’s position in the matter in a recent review put forward by a German writer. He says quite frankly : “The new An-glo-Italian tension differs from the old in that the. entire problem has been deliberately brought about by the ltalianss. Until now good relations with Britain were still an unexpressed dogma of Fascist foreign policy, but during the last few weeks Italian newspapers have openly decried and ridiculed this dogma. They assert that Italy’s dependence on Britain’s Alediterranean supremacy no longer exists now that the development of aviation and the great expansion of the Italian air fleet have created a completely new situation. To-day Britain is at least as dependent on Italy as Italy is o-n Britain. Malta, for example, could be destroyed in two hours by Italian airships. What in previous years was the modest proposal of a rising entrepreneur to be allowed to participate in the trade of a well-estab-lished business man has now suddenly become an historically justified demand. Britain’s position in the Mediterranean is only a relic. This Italian viewpoint is supported by the idea of the ‘Mare J/atinum’—Franco-ltalinn collaboration in the Mediterranean with its spearhead necessarity pointing at Britain.”

The cause of the shipping strike is the objection taken by the Australian Seamen’s Union to certain clauses of the new Federal award which came into operation this month, is explained in an exchange. The union’s quarrel is with the Arbitration Court, not with the shipowners, and th e action of the seamen is therefore a challenge to the authority of the State, which the Federal Government was bound to deal with. The new award provides for an increase of £1 5s per month in the pay of the chief ratings, but certain work associated with the handling of cargo lias been excluded from the definition of cargo, and hence will not be paid for as extra work done by the seamen. Again, the overtime rates have been reduced from 2s 9d to 2s 3d an hour. The last award of the court was made ten years ago, when an agrceineift was entered into between the union and the shipowners. Lgter an interim award was made under which wages were reduced by 10 per. cent. Wages restoration since then has amounted to something under 2\ per cent. Broadly speaking the union under the new award has gained in some ways and lost in others. Whatever may be the rights and wrongs oi the matter, the question to be determined is one of principle. Should a union subject to an industrial arbitration system be allowed to please itself whether it accepts an award of the court or not? An individual woo defies the authority of a court of law is sharply dealt with, and deceives no sympathy from the community, which recognises that a principle—the well-being of the State --is at stake. A well-organised trade union assumes the right to bold up a key industry at great loss to the community—and to itself. Is that not also a challenge to law and order, a blow at the welfare of the State P New Zealand may be drawn into the trouble, and in any case in the midst of the busy seasonal trade will suffer loss. The tourist traffic promising so well, is likely for one thing, to be seriously dislocated. It can be realised this Dominion is so much concerned in the outcome as the Commonwealth. Both countries are in a very difficult position, dependent as are on ocean traffic.

There was none of the hundred thousand pounds feeling among the County councillors on Tuesday when the question of restoring part of the wages cuts to the indoor and outdoor stalfs, came up for consideration. Actually Mr Dale’s proposal failed to find a seconder, and the employees have the honour of being the exception in the Dominion in that they of all state or semi-state workers, are. without favourable consideration. The negative action of the Council must have been a surpr'se, for it ~ » Ijeen the custom to applaud the work of the staff, and the condition of the country roads and finance. At the meeting in nuestion a visiting ratepayer t Id the members the rates' were too low! A > e'niibo r'nof council, i e sail, had a three-penny rate, another a ! four*penny 'rate, while Westland jogged along with a penny rate! Still it must have been the spectre of irate ratepayers which caused the inaction of the Council. It seems to be rather an anomaly that a workman for the State, doing precisely the seme work as a County employee, is hang paid two or three shillings per day more. If dissatisfaction creeps in, Die reason can be well understood.