THE WORLD-WIDE DEPRESSION.

Otago Daily Times, Issue 21200, 4 December 1930, Page 8

THE WORLD-WIDE DEPRESSION.

TO THE EDITOR. Sim—ln his reply to my letter on some Si ta ® the present depression, ■ B J r ,PL K- Wilkinson takes portion of my statement from its context and proceeds to ®uow, f rom quotations taken from the -Bankers Magazine, the effect a depleted gold reserve has upon the prices of giltedged securities. That the calling up of their advances by the banks makes trading operations more difficult is well known, and when this is stringent a wave of depresEion is the inevitable consequence. Lius is enhanced when these advances are used to bolster up our marketable commodities to fictitious values, and we have had plenty of experience of this state of things. It would be difficult to find anyone who would disagree with the view that the release of huge gold accumulations into channels of legitimate industry u x A.- ° r ' n ? prosperity in its train, but this can only be done by basing the product on world values, not upon wnat a chooses to pay for a home or upon what style he requires to live. We had an example of what is expected by some when a deputation of labourers recently waited on the Minister of Labour end urged-that the existing award should be overridden. The reason given was that of the men were paying as much as 108 Per week rent. It was evident the men thought there was nothing wrong in asking their employers to find the money, awards of the Arbitration Ljourt are based on an attempt to regulate the standard of living world values not being taken into consideration. Australia possesses great fields of industry lying undeveloped because they cannot be worked _ profitably at the basic wage. These the coal, gold, and base metal industries, and can anyone gauge what this loss means to that country? The loss of the flax industry alone in New Zealand runs into big figures, and the loss to tradesmen, rural workers, and others through the inability of settlers on the land and those intending to settle to path© wage demanded by the court is enormous; yet Mr Wilkinson says the abolition of the court and its awards would not he °f any assistance. He is not alone in this idea. We have it recorded that a judge of the Arbitration Court stated that an industry incapable of paying the rate of wages awarded by the court was better out of existence. While this feelmg prevails it is not surprising we have unemployment with its attendant evils I. regret that Mr Wilkinson declines to assist further in trying to pull us out of our trouble, but consider the reason given by him as trivial in view of the urgency of the subject and the long experience he has had in financial circles. Many good reasons can be advanced for adopting a nom de plume, although I think some of the letters appearing in the press should be signed by the writers. In the present case it is only my native modesty that prevents me from complying with Mr Wilkinson’s demand.—l am, etc., December 2. P. p. g.