The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, SEPTEMBER 30, 1930.) THE WEEK.

Otago Witness, Issue 3994, 30 September 1930, Page 45

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, SEPTEMBER 30, 1930.) THE WEEK.

The Imperial Conference.

“Nunquam allud Datura, all nd sapientia dixit. ’• -Juvenal. "Good nature and good sense must ever POPB.

The Imperial Conference, which opens in

London to-morrow, will be primarily a business meeting—that is the fact that is made most pro-

minent in the cablegrams relating to this gathering of Empire Prime Ministers. There are other important matters for discussion, including constitutional questions and foreign policy, but the consideration of the economic relations of the nations comprising the British Commonwealth, particularly the relations of the dominions with the Mother Country, will be the main task. It is possible, in reviewing these practical factors that go far towards preserving Empire unity, to discard sentimental talk. The loyalty of the dominions to Great Britain need not be brought into the question —it can almost be taken for granted. Loyalty to the king and the flag, however, is not sufficient—the dominions must be prepared to demonstrate their goodwill in a practical manner. Great Britain’s trade within the Empire represents only one-third of her total trade, and it is not increasing; has, in fact, shrunk sadly since pre-war days. The dominions are not patronising the British market as much as they could do, and that means that they are hardly giving the Mother Country a “ fair deal.” Take New Zealand, for instance, almost wholly dependent upon the markets in the United Kingdom for the disposal of her raw products, yet taking from the United States, which gives no adequate compensation, a considerable amount of imports. Great Britain is approaching the Imperial Conference almost as a suppliant, with the request that the dominions shall show practical sympathy with the depression in the country. It is regrettable that this should be the case when the part played by the Mother Country in developing her* possessions is remembered. Charity is not wanted, but a promise of real co-opera-tion in Empire trade. The dominions cannot do less than strive to meet the requests. The formation of a permanent economic secretariat is a suggestion that appears likely to give good results.

The Labourer and His Hire.

The deputation representative of influen-

tial farmers and industrial organisations which waited upon the ActingPrime Minister" and the

Minister of Labour to put the case for reductions in wages had forceful arguments to offer. That such a request would sooner or later have to be made has been recognised ever since prices began to fall, and it is as well that the matter should be given serious consid'ration at once. The most rudimentary knowledge of economics is sufficient to convince anybody, be he wage-earner or employer of labour, that when the proceeds from the sale of goods decrease, the costs of production of such goods must also be brought down. It is absurd to expect the farmer to continue paying his farm hand, for instance, the same wages for making butter to sell at Is per lb as when the butter was bringing Is 8d per lb. Similarly, the secondary industries cannot maintain wages in • the face of falling markets. The two alternatives were plainly stated —a reduced scale of wages or a reduction in the number of persons employed. Tn the case of the manufacturer the putting off of hands to swell the ranks of the unemployed is extremely undesirable, and in the case of the* fanner it is impracticable unless he is to allow a commensurate portion of his land to go out of production. New Zealand is still able to pay her commitments overseas, but increased taxation has been .necessary to procure this. If prices continue about their present level, or below (and there are no indications otherwise). the Dominion will drift into a position analagous to that in Australia unless production costs are decreased. The fact is unpalatable, especially to the worker earning a comparatively small wage, but it has to be faced. If costs are reduced all round—and it is the Government’s duty to see that they are—the hardship will not be great, and much more evil consequences may thereby be avoided.

Wild Promises in N.S.W.

New South Wales is the stronghold of the extremist section of

file Federal Labour Party, and in the State

election campaign, now in full swing, an attempt is being made to make the reality of tho depression in Australia an election issue against Mr Scullin, quite as much as against Mr Bavin. Thus we have the mildly amusing, if unedifying, picture of a party widely divided. The Federal Government has, perforce, accepted the strictures of Sir Otto Niemeyer upon the financial position of the Commonwealth, and has expressed its determination to cope with depression on the lines suggested, while Mr Lang, loud-voiced champion of New South Wales Labour, is attempting not only to discredit this determination to face the issue, but also to deny that the issue exists. There

is sufficient money in New South Wales, Mr Lang asserts, to finance public works schemes involving an expenditure of £200,000,000, and he is prepared to get it. Furthermore, he will make the railways and tramways pay, promote agriculture by costly measures, and maintain wages and hours of work at their old levels. Such an attractive programme could only be devised by a wizard, when Australia is in such a low condition that difficulty is experienced in raising a paltry seven millions in payment of outstanding debt demands. Mr Lang’s optimism should be an inspiration to the thousands of working men in his State who are finable to procure employment merely because there is no work for them to do. And the State will be delighted to know that he can wipe out a four million railways deficit with one stroke of the pen. The policy which Mr Lang has outlined is almost laughable in its naivety. Mr Bavin’s description of it as humbug is not ader quate, and it is almost inconceivable that it can influence even extreme Labourites.

The Publie Service.

That the State departments in New Zea-

land are over-staffed is a charge often made throughout the land. It

is usually accompanied by a demand for retrenchment. The allegation is, however, only partly correct, a fact emphasised by the Public Service Commissioner, Mr Verschaffelt, in his annual report on the activities of the employees of the State. Mr Verchaffelt makes a good case for the Public Service, his defence being that increases in personnel and in departmental activities are largely due to a public demand for further services. He states that this demand is “ ever-persistent,” and that it is only in times of financial tension like the present that complaints are heard. The net increase in the number of appointments during the past year has not been considerable—l4B, or 81 less than for the previous year, while classified salaries show a decrease of £6312. It is only fair that the public should bear in mind, as Mr Verschaffelt asks, that when a new service, particularly of a social or “ non-essential ” nature is inaugurated, this is usually owing to a public request. At the same time the departments must be made to appreciate, and must have continually before them, the necessity for an absolute maximum of efficiency at minimum cost in staffing. It is here, one is inclined to suspect, that a part of the fault lies, despite Mr Verschaffelt s denial that the enterprise of State workers is dulled by the non-com-petitive nature of their calling. There is a little too much bureaucratic government in this country, and it is only by keeping a very careful watch upon the Public Service that the people can be certain that this does not become magnified. Retrenchment has always beeii found to be possible in the past, and it is almost ten years since extensive cuts were last made.

Betting and the Bookmaker.

The Gaming Amendment Bill provoked

a fairly lively debate when it was introduced in the House of Repre-

sentatives last week. It did not .bring to light any new or striking comments upon the subject of gambling and the public, for these matters have been very thoroughly discussed many times and oft. What it did do, however, was to bring into prominence a glaring inconsistency in the laws of this country as they relate to horse racing. Because the public is not allowed to bet by telegraph on races held in New Zealand, the public patronises the bookmaker, and the bookmaker is a lawbreaker. In other words, a regulation aimed at discouraging gambling' has the effect of encouraging an illegal practice. Incidentally the Government, which has always found the totalisator tax an easy and profitable source of revenue, is baulked by its own legislation from de-' riving all the revenue it might from horse racing. With such bodies as the Presbyterian Assembly, which objects to betting on ethical grounds, manv people. are in sympathy, but it should hardly be necessary to point out that a Bill., authorising the transmission of bets by telegraph is not an incentive to betting when bookmakers abound in every part of the Dominion, and the wagers that cannot be made with the totalisator are made m default with these shy gentlemen. The other provision in the Bill, which seeks to give authority for the publication of totalisator dividends, has even less cause for opposition. It is common knowledge that the dividends on a race are known to everybody interested within a few hours —a few minutes, even —of the conclusion of a race. It will be admitted that totalisator dividends are news. The ban on their publication is irksome, tyrannical, and ineffective in its presumable object of curtailing gamb-.’ ling, and its removal should not .be delayed. At the time of writing the fate of the Gaming Amendment Bill is undecided, but if members vote according to their own views, it should receive a positive vote.

The Isolated South.

The Canterbury Executive of the New

Zealand Farmers’ Union has decided, though somewhat half-heartedly, to

support. the Southland branch in its protestation against the continued payment of a Government subsidy on the Melbourne-South Island steamer service. There is no section of , the community more competent to speak upon questions of this nature than the farmers, and their views must be listened to, but the conclusion can be drawn in

thia particular instance that the farmers’ organisations are rather short-sighted. A'regular and frequent steamer service linking the southern portion of New Zealand with its next-door and only neighbour is not a luxury, but an ordinary commonplace amenity demanded by progress. As it happens, the service has been run at a loss since its inauguration a few months ago, but the fact gives the Southland farmers no reason for assuming that it will continue to lose jnoney indefinitely. Indeed, shipments showed a gratifying increase, and it must be remembered that the service has beeri maintained according to original schedule scarcely at all; first, on account of a mishap to the Maheno, which prevented her taking up the running, and then through the loss of the Manuka. Even if the service continues to lose money its usefulness will remain. It is an encouragement to the tourist traffic, most of which is now diverted to the' North Island, and its value to South Island importers is immense. The Auck-land-San Francisco service is heavily subsidised, and its main benefits belong to the North Island—why should not the South Island receive a lesser privilege? The farmers’ only answer is that the subsidy on the northern service should also be discontinued. That would tend, to say the least, to place New Zealand in even more splendid isolation than at present, and is unthinkable.