THE New Zealand Herald. AND DAILY SOUTHERN CROSS TUESDAY, JUNE 2, 1931. FACING THE FACTS.

New Zealand Herald, Volume LXVIII, Issue 20888, 2 June 1931, Page 8

THE New Zealand Herald. AND DAILY SOUTHERN CROSS TUESDAY, JUNE 2, 1931. FACING THE FACTS.

To realise the expectation of the Arbitration Court's award reducing the rate of wages ought now to be the determination of all concerned. That expectation, in the words of the Court's memorandum accompanying its general order, is the giving of "an impetus to industry, where at present there is a distinct hesitation to make a forward move." Facts have been faced by the Court -—the economic and financial conditions affecting trade and industry—and its award has added another fact to these. What it has done under legislative authority it enjoins particularly manufacturers and traders to do—to face the facts, including this additional one —with a view to speeding the return of industrial and commercial prosperity, especially by passing on to their customers the benefits of reduced costs. Such action is rightly deemed an essential link in the process of recovery. Very much now depends on the reception given to the award. A united endeavour to make the utmost beneficial use of it will hasten economic recovery. "Temporising and failure to realise the needs of the situation," as the Court's memorandum emphasises, "are far more likely to have a lasting prejudicial effect on the standard of living of the community than is the adoption of prompt and efficient measures designed to bring about a, speedy economic readjustment," and "the sooner the readjustment is over the sooner we shall return

to normal conditions of prosperity, and the sooner will our industries be able to absorb a large percentage of those now out of employment." These points need impressing. In some quarters there is manifest a reluctance to accept the position created by the award. One of the workers' advocates before the Court suggests that an appeal may be lodged, on ground that is merely technical. Admittedly, he does so because of his- disappointment with the finding; had no reduction been made, he would have left others to find the alleged technicality. Something better is expected than such playing with a serious position.

It will be clear to all reasonable people that following the decision of the Court, their duty as members of a community in need is to give that finding 1 the fullest possible opportunity of achieving its purpose in. the! ultimate spreading of employment. The Court's injunction to manufacturers and traders to pass on the benefit of lowered costs is, in reality, an urging of them to take a step necessary to the imparting of an impetus to industry. To take this step will probably not be easy. It is conceivable in some cases that it will require very careful thought. But the obligation to take it, to the utmost limit of possibility, is an obligation. . It is suggested by those who speak for the Electric-Power Board and the Transport Board, that a lowering of charges and fares is beset with difficulty. That may be. Both bodies have responsibilities entailing development of public services on-a soundly commercial basis, and many things have "to be considered before announcing a decision. But a speedy review* of their positions in the light of the award is no less a duty than a care for the general policy of their enterprises. A new fact has entered, and might to be faced without delay. It is not enough to cite past or even ! recent financial difficulties, however I threat they have been : the award i looks to (he future, and is made in ' the expectation of imparting an ini- 1 petus To 1 co-operate in quicken-] ing that impetus has become a para-1 mount consideration in even the! most cautious of reviews. It is so' iilso, as the circular of the Employers' Association is framed to impress, with manufacturers and traders. Moreover, when the emphasis is placed, as it should be, on 'he expected impetus to industry and the spreading of employment, there enters also the desirability of sympathetic action by the banks. A lowered bank rate would encourage ion-owing for the development of nisiness, and thus contribute materially to the increase of employment and the raising of the purchasing power of the community

It is not to be expected, of course, "hat this impetus will be imparted overnight. These things take time. There is, as experience shows, a lagging in the movement of prices :*clative to wages, and of wages "dative to prices ; and this halting :.s apt to be very pronounced in connection with depressions. But that is no justification for refraining from effort to reduce the gap between the two. In the award there is offered an inducement to expedite the fall of prices, and this can lie done. It is not a movement to be initiated; it has begun. The cost of living, has been coming down appreciably for some time. In this is a reason for the Court's expectation of a reduced cost of living, commensurate with the reduction in wages, without any prejudicial lowering of the standard of living. The effect should be a stimulus to ;rade and a growth of confidence all round. That this may not emerge immediately, that many affected by the reduction will find it a hardship, ought not to be interpreted by any as an argument against the expectation held out by the Court. Unfortunately, this is a phase not to be avoided altogether, but the hardship can be mitigated and its experience shortened by wise co-operation on the part of all. The outcome in a recovery normal prosperity will be ample compensation and reward.