THE Wairarapa Age MORNING DAILY. SATURDAY, APRIL 8, 1933. UNEMPLOYMENT FINANCE.

Wairarapa Age, 8 April 1933, Page 4

THE Wairarapa Age MORNING DAILY. SATURDAY, APRIL 8, 1933. UNEMPLOYMENT FINANCE.

Of late there has been a revival of suggestions that the present financing, and treatment of the unemployment relief problem might be improved upon by borrowing a substantial amount of capital on the security of the special unemployment taxation. On the face of it, these suggestions are well worth going into. The position at present is that, though the special taxation on Wages and on income other than wages has been increased heavily, the total available resources of the Unemployment Board have not much more than enabled it to keep abreast of outgoings during the summer. At the same time, there are many complaint., that the scale of relief is wholly inadequate and winter is now at hand. These facts and their implications certainly suggest that the question‘of endeavouring to make better and more effective use of the money that is available for relief needs practical consideration.

Of the loan schemes recently mooted, Mr. D. J. McGowan, of Wellington, has suggested that a sum of £lO, should be raised on the security of the unemployment funds at a very low rate of interest and expended on the construction of a system of permanent concrete roads. Mr. McGowan thinks that the loan could be repaid at the rate of a million a year, plus interest. The weaknesses of this proposal are more apparent than its merits. The financing of one loan of ten millions would absorb for ten years not very far from one-half of the present revenue of the Unemployment Fund, and is there any guarantee, or likelihood, that the possession of concrete roads costing ten millions would make the economic position of the Dominion much better than it is at present? A more elaborate proposal has been made by Mr. F. J - . Jones, ehairman of the Hutt River Board. He assumes that unemployment can be wiped out during a period of ten years and suggests the raising of a loan of £2,500,000/ to be added in the first year of operation to the proceeds of unemployment taxation. Mr. Jones assumes also that during the nine following years there would be a steady reduction in the volume of unemployment and that it would be possible, even with substantial progressive reductions in unemployment taxation, to provide for the diminishing total of unemployed and to meet charges on the loan. Any loan scheme worthy of adoption evidently must ensure a progressive redaction in the demands otherwise made on the Unemployment Fund. It would be allimportant that the expenditure of any loan raised on the security of the fund should be directed and controlled from this standpoint. Improvements to main roads might merely create a standing upkeep charge and do little to remedy or relieve existing economic disorders. A better case probably could be made out for spending some of the proceeds of a special loan in giving effective access to outlying settlers. The best use that could be made of unemployment loan money, however, evidently would be to establish people now unemployed as speedily as possible in self-supporting productive employment. A portion of the funds might be used very profitably, for example, in preparing good land in suitable localities for occupation in small holdings. State tree-planting also has claims to consideration. In this case the expenditure would create an asset and provide future, as well as immediate employment. Even more might be accomplished, in co-operation with private enterprise, in carrying out works that would facilitate and assist the reorganisation and expansion of secondary industries. A methodical examination of the possibilities of building up and enlarging the scope of self-supporting productive enterprise may show that the pro ject of borrowing on the security of the unemployment funds offers considerable advantages to the unemployed and to the Dominion. AN APPEAL TO HEED. In a statement which appears in another column to-day, the Mayor (Mr. T. Jordan) calls, in terms that should command attention, for a better response than he has yet received to the appeal he made ten days ago on behalf of the unemployed. Good grounds undoubtedly exist for the surprise and disappointment expressed by the Mayor and he is probably right in considering that if those who are in a position to contribute will only give some thought to the needs of their distressed fellow-citizens, the poor response thus far made to his appeal (except by a limited number of generous people) will soon be bettered. As Mr. Jordan observes, many among us are on the borderline of distress themselves and cannot help and to this it be added that some who are not in distress find themselves burdened in doing what is possible to help relatives and friends. When all is said, however, there must be a considerable number of people who could give something to the Mayor’s Belief Fund and have as yet abstained. The needs to be met are urgent and serious and all who ( can afford to give something should feel bound to do so. (Small contributions will be welcomed as heartily as those of larger amount and all 'are needed and needed badly.