ECONOMIC RELIEF.

New Zealand Herald, Volume LXIX, Issue 21116, 25 February 1932, Page 13

ECONOMIC RELIEF.

STATE EMPLOYEES' CASE. ALTERNATIVES TO WAGE CUTS. CONTROL OF CURRENCY. < [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Wednesday. The executives of the service organisations in the Post and Telegraph and Railway Departments have been giving special consideration to tlio general economic position, with its actual and probable future effects upon the State. Mr. W. F. Kent Johnston and the general secretary of the Post and Telegraph Employees' Association, Mr. J. H. McKenzie, to-day stated that for the past ten days a representative deputation from the four organisations, the Post and Telegraph Employees' Association, the Railway Tradesmen's Association, the Amalgamated Society of Railway Servants, and the Locomotive, Engineers, Firemen and Cleaners' Association, had unsuccessfully endeavoured to meet tho Prime Minister, the Rt. Hon. G. W. Forbes, for the purpose of submitmiting a number of proposals as alternatives to the wage-cutting policy. In view of their failure to secure an appointment, it had been necessary that certain delegates should return to their homes, and it had therefore been decided to forward a written statement to the. Economy Commission. Tho memorandum states that, in consideration of the efficient and useful services they render, any further inroads in f.lie economic position of public servants should be the last resort of a Government faced with difficulties in balancing the Budget. The association directed attention to the following points, which it contended would offer the Government temporary relief without the hardship of wage reduction : (1) The issue of Treasury notes as legal tendei to a limited extent not greater than the Budget deficit, or, preferably— (2) Control of currency by a central bank, and an Exchange Board having statutory instructions to use the recognised machinery of central banking in order to maintain our local price index within reasonable limits, such bank or board to be the only issuing authority in the Dominion. (3) Mobilisation of gold, State monopoly of gold purchase and utilisation of overseas gold reserves. (4) A closer land settlement policy. (5) Reduction of the Government's interest bill by the collection of income tax half-yearly. Should these proposals not find favour, the memorandum submitted alternatives which should more evenly spread tho burden of sacrifice, still without recourse to further wage reductions. (6) The flotation of a fresh internal loan at a lower rate of interest, to bo popularised to the greatest extent by the Government. (7) A conversion loan and the conversion of tax-free bonds to taxable bonds. (8) Reduction of interest rates and rents by legislative enactment. Air. Forbes stated to-day/ that the. organisations concerned made a request to him for an interview prior to tho opening of the session, but owing to pressure of business he was unable to accede to the request. He had advised the organisations to place their case before the Economy Commission, and at the same time offered them an interview to-morrow morning.