The Daily News WEDNESDAY, AUGUST 27, 1930. THE NATIONAL NEEDS.

Taranaki Daily News, 27 August 1930, Page 8

The Daily News WEDNESDAY, AUGUST 27, 1930. THE NATIONAL NEEDS.

As president of the New Zealand Farmers’ Union Mr. W. J. Polson, M.P., recently addressed meetings throughout the Dominion on the economic conditions affecting this country. His purpose was, of course, to try to convince the people of the need for a readjustment of national and individual finanece with the object of relieving the primary producers' of an excessive burden of cost and taxation in order that they might be able to carry on* their big business in changed circumstances. The publication of Sir Otto Niemeyer’s report on Australia’s financial difficulties has afforded Mr. Polson an opportunity to repeat and emphasise the warnings he gave some weeks ago, and in a statement of his which the Taranaki Daily News published yesterday he has put the opportunity to good use. It would be easy to dismiss his really thoughtful survey of Sir Otto’s report with the comment that Mr. Polson is a pessimist; that his only concern is to make things easy for the farmer at the expense of the rest of the community, or that as a member of Parliament he is not doing a great deal to bring about a national practice of economy, that virtue which he so generously commends to individuals. But his remarks demand far more consideration than that. Thel great English banker who has been commissioned to advise the Commonwealth how to cope with its financial difficulties has pointed out that Australia has borrowed excessively, that she has made living excessively costly by sheltering industries, and . that she has raised her standard of living and her rates of wages to “a point economically beyond the capacity of the country to bear.” The remedy she has to apply is to adjust herself to the new world conditions—falling prices, which must be met by lower costs. Australia’s difficulties, as Mr. Polson has pointed* )ut, must have an effect on New Zealand, and this country, unless it takes warning, will feel the effect very seriously, since coalitions here are only some decrees better than in the sister Dominion. It is true that this country has but one Governnent while Australia has seven; Slew Zealand’s borrowing has not men on quite such a grand scale is Australia’s, and this Dominion las been spared the extravagance )f Labour Administrations. 'But f there is only one Parliament in ;his country there are 700 local mdies—to administer the public nisiness of a population numberng barely one million and a half, fhe local bodies have been active iorrowers, and when their debts ire added to those of the State he result is that each man, voman and child in New Zealand s responsible for more than £2OO if public debt. Surely that fact done indicates the gravity of his Dominion’s present position. U a matter of fact the debts of he Commonwealth and State Governments in Australia amount o a sum per head of population hat is almost identical with the iroportion per head of the New Zealand Government’s debt. On he score of indebtedness this ! )ominion cannot crow over the eighbour, nor is the position a reat deal better in respect of the ther conditions that have been tressed by Sir Otto Neimeycr. ’ailing price levels are just as eriously the concern of this ountry as they are of Australia, 'here is, however, a difference of ircumstances: Australia has be ome so ill that she has had to all in a doctor; New Zealand is bill able to apply a simpler emedy. If the Government will egin now to cut down public exenditure and the people will get jgether in an effort to reduce asts New Zealand will have othing to fear. A thorough of ideas is needed,

as was indicated very plainly in two telegrams that were published yesterday. There is a dispute in Christchurch over tramway workers’ wages and conditions, the employees seeking more pay and the employers replying that it is impossible to make the trams pay their way under the present award. In Wellington a deputation has complained that the proposed unemployment levy would mean a reduction of the wageearner’s wages—a reduction, forsooth, of nearly 7d a week. The same deputation has complained that foreign ships arc being chartered to do work which could be done by vessels manned by New Zealanders. The reason is not far to seek: the work can be done more cheaply by shipowners who do not have to pay the high wages under the New Zealand award. While prices are falling everywhere wages cannot be maintained. This country must face the fact that wages are beyond the ability of industry to pay. The costs of production must come down to meet the new price levels, just as the cost of government must be brought within the limit of the country’s financial resources. • If New Zealand is to avoid sharing Australia’s troubles readjustment must begin at once.