SALARY CUTS AND PRICES.

New Zealand Herald, Volume LXIX, Issue 21129, 11 March 1932, Page 12

SALARY CUTS AND PRICES.

Sir, —Wage and salary-earners in general will readily admit that real wages are of more importance than money wage*The economists report in favour of the extension of the wage-reducing policy would meet with little opposition fron workers, were they assured that all coss would fall proportionately with lessen money wages. From past experience know how little of the reduction in cos' is passed on to the consumer, who benefits little except in respect of tnos» articles which glut the market. gas and insurance premiums, etc., rcn>a> unaltered: the price of meat and ac ? D r !! out of all proportion to the amount ceived by the farmer for his stock, M bread remains, in effect, at the same pH in spite of the recent announcement 01 the master bakers. A reduction in.® tercst rates would confer very h'" o vantage upon the wage-earner, for little of the benefit would remain by to time it reached him. The rise M rate of exchange would _ inevitably accompanied bv higher prices, w sum of these 'matters, wage reduction., higher rate of exchange, increased tax and other turns of the taxations would bring dire hardships up° n . wage-earner, the landlord ana ' Treasury, but would spell nothing of ruin to the business section 0 .. community. We agree that is to be found along the w - ay of internal price levels, and are P re P.ji t to pnv our portion of the burden readjustment is being made but ® company higher prices witli 1 ..t.i taxation and greatly reduced to purchase, will react most dm all directions. Attention " aS of drawn i-o the fact that nothing unexpected has been incorpoiate economists' report. One feature nc(> might have been looked for is ],j to the utilisation overseas of ra . held in this' country. On a 9 w {th live basis New Zealand ranks _ Franco and the United States, the greatest gold hoarders ot Prominent, bankers and econoni j a referred to the profitable " se . tfeff P.ritain that could be made ) j n( Jed. Zealand Government if.it weie s Then, again, the hmise-to-hotise and purchase of gold in any sli. P { . , by private firms tor source of revenue the■ *- • t u se intf® ! t-iit 1 v unwilling to exploit, f Jf could effect a pain to "renter than that derived fiom servants' salary Secretary, P. and T. Employees