WAGE REDUCTION PROPOSALS.

Timaru Herald, Volume CXXXIV, Issue 18818, 5 March 1931, Page 8

WAGE REDUCTION PROPOSALS.

MASS MEETING IN TIMARU. ADDRESS BY REV. CLYDE CARR, M.P. The Rev. Clyde Carr, M.P. for Timaru, addressed a gathering of approximately 500 people in the Scottish Hall last night, the speaker dealing with the Government’s wage reduction proposals. The meeting was presided over by the Mayor (Mr W. Angland), members of the Labour Representation Committee also being on the platform. In introducing Mr Carr to the gathering, the Mayor said that he had been asked by Mr Carr to take the chair, and as Mayor, he held that it was his duty to do so, especially when the subject matter of Mr Carr’s address was most important, as it was dealing with such problems as wage reduction, standard of living, and purchasing power of the workers, all of which now confronted a large section of this community. He said that there were also other important problems to solve, such as the unemployment problem, cost of living, land settlement, cost of production, cost of shipment of produce to the Home markets, and high freight of produce to the North Island, which lessened the revenue to farmers and made the cost of living high to our fellow-citizens of the north. Again, there was the problem of the limited circulation of money and the restricted advances by the banks, and the high rates of interest charged, which handicapped mercantile firms, farmers and business men, and had helped to create unemloyment, and the distressed state | which all were now passing through. It seemed to him that there was something wrong when they took into consideration that the Bank of New Zealand had been making a profit of close on one million a year, and the other associated banks in proportion in a country like this, with a population of about only one and a quarter million people all told. It required the attention of Parliament to put this important matter right for the welfare of the people of this country. To his mind, the Bank of New Zealand should withdraw from the aesociated banks and- trade independently of them, as the people of this country, through their representatives in Parliament, came to the rescue of the Bank of New Zealand when it was threatened with closing its doors some years ago. Again, there was the problem of stopping so much money going to America each year out of this country, approximately ten million, which was draining the finance of the country dry, and America’s purchase from New 7 Zealand was only about three and a half million. He contended that this matter should receive the earnest consideration of Members of Parliament, and the people of the country. He hoped this special session of Parliament would solve some of the problems he had mentioned, and by doing so, he had no doubt but that it would assist the people of this country, and that once again New Zealand would be as happy and progressive as it was in the days of Ballance, Seddon and Ward.

Mr Carr’s Address. Mr Carr thanked the Mayor for his kindly introduction, but pointed out that the invitation to the Mayor to take the chair had been made by him on behalf of the Labour Representation Committee. Mr Carr then went on to say that protests had been crowding in on the Prime Minister, by deputation and letter, against the proposed wage and salary reductions. These would continue, and would grow from more to more. The Prime Minister had replied to one he had forwarded, saying that he had no alternative. This was a confession of failure, and a proof of ineptitude. He had said that Parliament would deal with the matter. He knows now that his policy would not be adopted at least without considerable modification. A wi-ier man would have thought of that before, and not have unnecessarily alienated the large mass of citizens. The Government of Japan formulated a similar policy, but had been forced to abandon it. Were the people less intelligent in New Zealand? He had heard of no organised protests yet in this country from tradespeople and farmers. Had they not yet realised that a curtailment of the workers’ spending power would knock the bottom out of the home market, and endanger their own livelihood? Nor would it end there. Other nations had followed our good example in the past, and with the help of such newspapers as the “Morning Post,” might yet be foolish enough to follow our bad example. This ■would inevitably mean a further blow to world markets and a further fall in world parity. Indeed, he ventured to say that the present low prices for primary products were largely due to the lack of spending power of the workers of the world. The machines of production were glutted; outlets were choked up. The barns were filled with plenty and the presses with new wine, all waiting to be burst open with a golden crowbar hidden away in a bank vault. If they now knew it, they had other means of doing the Job. The money power must be removed from a few private hands. There was a “stoppage on the line”; it was blocked and broken down with loads of gold and notes that should be commandeered and used to repair and extend it. There was no shortage of gold in the world or of notes in the banks. The amount of gold in the treasuries of the New Zealand banks, and hence the number and value of notes on issue, was no doubt, strictly limited. But what was the position in London? All through October and November there was over sixty millions of unused currency notes lying in the banking department of the Bank of England. The bank return for December 17 showed that even at that time of the year, when there was always an abnormal call on currency for Christmas buying, there was still forty-five and a half millions of currency notes lying idle in the banking department. One had only to remember how vast loans were rapidly over-subscribed in London to realise there was no shortage of money there for investment in anything but industry and. decent wages. The trouble was that it was in fewer hands and wrong hands. Even in New Zealand, the Hawke’s Bay earthquake had shown there was no shortage of money. But only a sudden national disaster could tap the hidden springs of wealth. Similarly, there was no shortage of money to fight the War, especially in the purchase of tax-free bonds of gilt-edged security. Why, then, the alleged dearth of wealth to-day to find work and wages for the unemployed, to help farmers, tradespeople and manufacturers?

“We conscripted our man power for war. Cannot we conscript our money power for peace—peace in industry?” said Mr Carr. "We shall not have peace in industry if the flat 10 per cent wage and salary cut and the suspension of awards take place. I believe both the political and the industrial wings of the Labour Party will fight this wicked imposition to a finish. The annihilation of the weakest may be the law of the jungle, but should have no place in a so-called Christian civilisation. To lower the wretchedly paid worker’s standard of living and leave rents, interest and profits to

take their own course, further iUustrates that under capitalism it is tne poor that help the rich. ’ Mr Carr went on to say that in tne v/orld to-day there were four million •laves, and that did not include wage slaves. On a big sheep station n< j far from Timaru, 25 miles long ana mostly Government leasehold, where 23,000 sheep were shorn, shepherds were being paid to-day £1 per week, and had to feed their own half-dozen dogs each to do the boss’s work. Rouseabouts were paid 15/-. They were men from 20 *o 30 years of age. There was a wheatfarmer in the Geraldine district who had been offering rtookers 9d per hour and found, instead of the ruling wage of 2/- cr 1 lOd. Did theee petty tyrants need a Liberal Government to give them a lead? He had read that the employees of a certain County Council were taking tlieir wage reductions well. (Laughter.) “But wait! Even a worm will turn.” said the speaker. “Strange to say, they thought it hardly fair that their working week should be reduced, as well as their wage per hour!” Mr Carr went on to say that if tne wealthy were taxed as they ought to be taxed, on a steeply graduated scale; if Company taxation were largely replaced by individual taxation; if unearned increments were taken, as they ought to be taken, by the State; if the big squatters were taxed on the selling value they placed on their estates; ' if all land above a certain area reverted on transfer to the State; if the Government representatives on the directorate of the Bank of New Zealand heid the balance of voting power, as they should do; if, without undue inflation of the currency. Treasury bonds were issued on the undeveloped assets of the nation as security, instead of mortgaging ourselves for all eternity to. the moneylenders of the Old World and the New/then farmers, industrialists and workers would have nothing to lose and everything to gain. Mr Forbes the advice of the ve ted inters ts, and knew no alternative to red 7 : wages by a flat 10 per centum in th~ Government service, whereby one-ninth of the wage earners of the Dominion was being asked to find one-third of the expected shortage of four and a half millions, as well as meeting their share of the £850,000 proposed to be raised by direct and indirect taxation. In addition he proposed to ask the Arbitration Court to break faith wdth the workers by a suspension of awards. The speaker went on to say that £63,000 had been advanced by the Pudlic Trust Office to finance the Tongariro Park Tourist Co., which was now Droposing to go into liquidation. Surely a better use for this trust money could have been found/ A Press message from London dated January 12 told how the “News Chronicle” editorially commended New Zealand’s action in paying the expenses of thirty-three boys coming here to train as sheep farmers. “And our own boys cant find jobs,” he added. Many of the unemployed were returned soldiers. Ye* ■.he Canteen Fund showed on February Ist total funds of £207,792 14/11. Last year £SOOO was spent on unemployment relief, and this year £3500 hid been voted; £2OOO was devoted to the Trentham Scholarship Fund, and this year the grant was £ISOO. He thought the Board could afford to be more generous. New Zealand had a national debt of £200,000,000. Meanwhile land values had risen £400,000.000, so that we had to pay interest to-day on £600,000.000. This interest must come primarily from the products of the soil. No wonder the farmer was up against it! But lowering wages would not solve his problems. The Liberal Government, the Sheep Owners’ Federation, the Farmers’ Union, the Chambers of Commerce, #nd the Employers’ Federation all joined in the cry, “Reduce wages; make the workers pay!” From him that hath not, shall be taken away, even that which he hath. But the workers of New Zeai land would not take this treatment lying dowm. (Applause). At the conclusion of his address Mr

)arr read the following resolution;— “This mass meeting of workers protests emphatically against the proposed flat ten per oent. reduction of wages and salaries in the Government service, that of relief wages to 12, 6 and 9/-. and the suspension of current Arbitration Court awards. We believe such action would only aggravate the position, that it is unnecessary and unjust, and insist that the State should exercise a larger measure of control of our National finances; also that existing exemptions of the wealthy from taxation should be removed, and a steeply graduated income tax imposed. Further, we pledge ourselves to support any and

every constitutional means that may be adopted throughout New Zealand in harmony with the spirit of this rr elution, to oppose the Government’s wage reducing policy and to effect the alternative proposals suggested above.” The motion was moved by Mr J. White, seconded by Mr D. Mills, and carried unanimously. A question was asked the speaker if he did not think that something morewas necessary than, the mere passing of a resolution.

Mr Carr asked the questioner to make a suggestion, and he replied: “Tell the bosses we are not going to take it, and there will be trouble.” Mr Carr said that he did not advocate anything in the way of a direct strike or hold-up; he certainly would not do so until every peaceable means had been adopted. (Applause). In reply to a question as to whether the Labour Party intended to adopt the same attitude next session as it did last session, namely, speak against every measure and then vote for it, Mr Carr said that the position represented by the question was not quite correct The questioner: “It is practically so.” Mr Carr said that a good many of the measures were put through with the assistance of the Reform Party. The policy of the Labour Party had been to support the United Party as far as it was in the interests of the Dominion, and at times they did so to keep Reform off the Treasury Benches. Mr G. T. Koller: “Is it not a fact that the goods we get from America are paid for by products?” Mr Carr; “Yes, either directly or indirectly. Our imports can only be paid for by our exports.” A voice: “Don’t you think one way to solve the problem would be to reduce the working hours by half?” Mr Carr said that it was his opinion that if the week consisted of 40 hours, most of the problems would be solved. Machinery was displacing labour, and the only escape was a shortening of the working hours. “Even if we only worked four hours a day, we could produce enough for everybody and to spare.” he added. On the motion of Mr Koller, a hearty vote of thanks was passed to Mr Carr for his address. A vote of thanks was also passed to the chairman.