King Country Chronicle. Thursday, December 4, 1930. THE UNEMPLOYMENT BILL.

King Country Chronicle, Volume XXIV, Issue 3238, 4 December 1930, Page 4

King Country Chronicle. Thursday, December 4, 1930. THE UNEMPLOYMENT BILL.

Now that the first instalment under the Unemployment Bill is due, those liable are beginning to think serious ly what the new measure actually means. The first instalment of the annual levy fell due on Monday last, and if this is not paid by the end of the month those liable lay themselves open to a penalty of £5 as well as a fine of 6d a month or part of a month for which the amount remains unpaid. This new form of taxation has been severely criticised in many quarters, coming at a time when taxation has been increased on all sides when the people can illafford to bear any additional burden in this way. The exigencies of the times, however, demand drastic measures. So far the country has not felt the full effects of the slump in prices for our primary products, and it will be several months yet before it is properly realised how the fall in prices on the London markets will affect the social and domestic outlook of every individual in the Dominion. Unless a miracle happens the unemployment problems during the coming year is likely to be more acute than ever before in the history of the Dominion, and this is not an age of miracles. It is no use blaming Governments or any particular section of the community for the present position. For years this country as well as many others has been living in a fool’s paradise by not paying attention to the inexorable laws of economics. The day of reckoning has now come, but even the most pessimistic never considered that this reckoning would be so severe. The situation is not hopeless, however. Far from it. We have a country rich in possibilities and a virile and energetic people with initiative powers and the will to make good. The first step towards rehabiliation must be in the direction of economy. Owing to several periods of boom conditions new standards of living were created and the people of all classes still cling to this standard, ignoring the fact that the general trading conditions of the country cannot afford anything in the way of extravagance. Money that was formerly spent in luxuries will have to be diverted to productive channels, and so help to foster the commercial activities of the Dominion. • Inflated values for land must be readjusted to conform to existing conditions. Business men, whether in a large or small way, will have to be content with smaller profits; public expenditure must be curtailed; and overseas borrowing cut down to a minimum. This country has prided itself on the fact that it has led the world in what is known as social services, but it is most questionable whether we can continue these in quite so generous a scale in the future. There must be a general cut in national as well as individual expenditure. This does not mean that there will be less money in circulation, or that there will be a diminution of commercial activities. It is not a sound proposition to allow money to stagnate —the position in the United States to-day is ample proof of this —but if les: money is used for luxuries and more diverted to productive channels it means a general increase in trade which will give a permanent return

not only to the individual but to tin country as a whole. The Unemploy ment Board'at its first meeting de cided to base its subsidy on a wag< of 14s a day. If this policy is to b< adhered to the Board will have th< greatest difficulty in carrying out it; objective of finding work for the whole of the unemployed who will b( seeking work next year. If the Boarc has half a million at its disposal foi relief works and pays 14s a day it will be able to supply 700,000 days of work; if the Board pays 9s a day to single men and 12s to married men it can provide 950,000 days of work, and spread the relief amongst onethird more of the unemployed. It has to be conceded that 12s a day, with the present cost of living, is a small wage for a married man, but it would be much better to spread the amount available for relief works as much as possible. The wages question in all industries- must come up for review in the general re-adjust-ment of our economic conditions. Wages are a big factor in the cost of production in this country. As in the case of relief work, there is only a certain amount of money to pay the wages bill of the Dominion, and that sum should be as widely distributed as possible. In the meantime those who have work are called upon to pay a levy to help those who are not so fortunately situated, and it is to be hoped that the response will be a cheerful one, -regrettable as the circumstance are that necessitate such a measure.