CUTS IN INCOME.

New Zealand Herald, Volume LXIX, Issue 21131, 14 March 1932, Page 12

CUTS IN INCOME.

Sir,—With " Straphanger's " criticism of the £IOO bonus to members we quite agree, but venture some comment on the Government's failure to " produce machinery to reach all sections of the community equally, so that the sacrifice is the same as a 10 per cent, cut in civil service salaries." " Straphanger" pos--sibly does not realise that practically everyone in this country whose earnings are not pegged by law has suffered in many cases far beyond a 10 per cent. " cut." This sacrifice has not required any machinery—it has been automatic. Certain sections of the community, such as the civil service and those under awards, have had their salaries and wages pegged by legislation. These are not affected by economic law unless that peg is removed, hence the need for Parliamentary machinery. When a private business is up against a falling income it must carry on within that income or close down. Its only course is to reduce salaries or staff, and the former course has been most generally adopted. In State affairs it is exactly the same. If the State's income suffers reduction it simply cannot carry on, any more than can a private firm, it must reduce salaries or staff, and it prefers the former. Let ua consider some of the other sections of the community who have not suffered any sacrifice according to " Straphanger." The farmer's income has disappeared, oi; nearly so. Banks and companies have reduced dividends and in some cases declare# no dividends at all. Investors have not only lost income but suffered grave losses of capital—compare the values of shares today as against 1929, for instance, D. and Co., £ls in 1929, £6 now; G.M. and Co., £2 10s in 1929, 19s 6d now: B.T. and Co: r £2 9s in 1929, £1 3s now, and so on. We could quote numbers of other instances, but the above will suffice- to prove what some wages men and civil servants constantly overlook, namely, the fact that other sections of the community have already suffered a greater "cut" than they have without any legislative in machinery. N.Z. Welfare League.