UNEMPLOYMENT.

New Zealand Herald, Volume LXVIII, Issue 20794, 10 February 1931, Page 16

UNEMPLOYMENT.

Sir, —Replying as briefly as possible to Mr. Simmons. The relative importance of interest, land values and wages in the development of land can be easily tested by the fact that it is quite impossible in New Zealand to break in new country at current trade union wages and under trade union regulations with the land given for nothing (which cannot be inflated) and using one's own free money (the interest cannot be too high). If Mr. Simmons thinks otherwise, let him try, and if ho wants me to answer all his questions with supporting evidence let him reserve a special issue of the Herald. As to the effect of speculation. Mr. Lamont probably referred not to legitimate speculation, but to the wild, insane gambling on the stock exchanges of the United States. I recommend to Mr. Simmons the study of John Stuart Mill's opinion on speculations, which is probably of moro value than that of the president of the J. P. Morgan Company. If Mr. Lamont did not mention uneconomic wages among the main causes of distress it shows his opinions to be valueless. It is untrue to say that my pet theory is high wages. I have always advocated the payment, of wages on the highest possible scale and have always fought for land values being kept down. But if we attempt to pay 30s wages for work worth 20s we shall inevitably become bankrupt. There is nothing sabred about wages; yet all politicians and most other people seem afraid to discuss the subject. I have said no word against the readjustment of our war debts—with the consent of our creditors. For a creditor to accept less than his due is certainly charitable and a debtor's necessities may humble him to accept of this charity; but it seems rather absurd to have to point out to my opponent the vast difference between that and his claim that it is our duty to look to the maintenance of our own scale of living " before meeting the exorbitant demands of unreasonable and apparently unscrupulous foreign creditors." I repeat that this is pernicious, dishonest claptrap. Moreover, it is bad business as well as bad manners to abuse our creditors. Mr. Vaile is certainly "one of those extraordinary people" who believe in paying their debts before looking to their own comforts. I would further point out to Mr. Simmons that what the United States is prepared to do in the matter of collecting its bad debts (while refusing to accept payment in the only way possible to its debtors) has nothing to do with us. We are not among its debtors. We went on to the English market, the Australian market and our own local market with our hat in our hand and borrowed from John Smith and Dick Brown and Bill Jones, as much as they would lend, and I say it is worse than impudence to turn round and call them names such as "unscrupulous foreigners," and demand that they shall accept less than they lent in order to maintain our own standard of living. E. Easle Xaixb.