UNEMPLOYMENT SCHEMES.

New Zealand Herald, Volume LXVIII, Issue 20922, 11 July 1931, Page 14

UNEMPLOYMENT SCHEMES.

Sir,—l was quite interested in reading a letter from your correspondent '-'Not Spoon Fed." He seems to_ have grasped the position correctly. It is not the lower price of farm produce that is chiefly the cause of sp much unemployment, as the price now is about the same as it was in 1914. The trouble started when the Acts providing advances to settlers and workers were put on the Statute Book; also that curse, the Arbitration Court. The large sums advanced to farmers pushed up the price of land to an abnormal extent, so that anyone buying a farm was strangled at the start. Many millions have been lost by that foolish scheme. Then large sums were advanced to workers. That wild scattering of millions gave the Arbitration Court the chance to keep ojt raising wages until they were so high workmen became quite a luxury and only the wealthy could afford to employ them. If the present Government, when it first took office, had wiped the Arbitration Act off the slate, it would have done more good than all its unemployment legislation We are only keeping the wound open and it will get "worse every year. We must certainly give Mr. Forbes credit for the reduction he made in wages and salaries, but in many cases it should have been 20, instead of 10 per cent. The cuts made by local bodies are perfectly absurd. We must face the music and get down to a cheaper cost of production befoie any change can take place. Also Not Spook Fed.