ECONOMIC CONDITIONS.

Otago Daily Times, Issue 21146, 2 October 1930, Page 6

ECONOMIC CONDITIONS.

TO THE EPXTOB. Sib, —Under the above heading I notice a letter in which the writer attempts to justify an attack on the Arbitration Court standard of wages. In fact, he sighs for the good old times when 8s a day was paidi to the unskilled worker, and £1 a week or less was paid to the farm worker. He fails to realise that economic condir tions have greatly changed since that period and that the purchasing power of money has declined from £1 to 12s Bd, which is approximately 40 per cent. This represents nearly 40 per cent, lower standard of living than the worker enjoyed at that time. The workers could consider that proposal when the farmer is getting the same prices for his produce as he received in those days. Your correspondent draws a dole'ful picture of the farmer’s, position and suggests that the only means of saving the country from ruin is a general reduction in wages. I would like to ask him how does he expect the New Zealand worker to buy his produce at the present rates if he has a further cut in wages. • At the present time one of the main reasons for high cost of factory production is that the manufacturer’s rate of profit is far too high. Factory production in 1010-1911, as given in the 1913 Year Book, shows gross output of £31,729,000, and amount per worker £564; in the 1930 Year Book the figures for 1929 are gross output £03,172,000 and amount per worker £lll3, showing over 100 per cent, increase per worker. .In the same time the average value added to the raw material had risen from £194 to £398. The average wage had risen from £99 (in 1910-1911) to £204 (in 1928-1929), a difference between added value and wages (in 1910-1911) had risen .from £95 to £194. So, while the cost of living his risen 60 per cent, or over, the employer gets over 100 per cent, more profit from each worker. Of course, he has to pay more for material, and owing to that fact, his capital has to be increased. But there is no doubt that for several years the rate of profit has been too high. During' the last few years it has been estimated that the New Zealand worker earns his day’s wages bn an average of less than four hours, leaving the other four hours for the manufacturer’s profit, so that in every £1 he pays in wages he makes £1 or more in profit, Coming back to the farmer and his present condition, is it not a fact that he used to be content in the old days with an outing say, twice a mpnth, now he spends half his time running about the country in his motor car, leaving his farm t to his men, or in other cases, neglecting to do necessaiy work. Not only does Jio waste money in unnecessary joyriding but he starves his farm to get enough to do so. Let the farmers consider this fact, that they, as a class are neglecting the railways, which, in the majority of cases, made them, for the motor car, which in the majority of cases will break them.—l am, etc., A. E.