A BANKER’S WARNING

Wanganui Chronicle, Volume 73, Issue 370, 13 September 1930, Page 13 (Supplement)

A BANKER’S WARNING

The chairman of the Ausralian Raifways Commissioners, Mr Clapp, speaking recently at a social gathering of railway, remarked that “all had to come back to earth in the matter of wages and salaries.” The people in the country, he said, understood better than those in the city what Sir Otto Niemeyer had said. That is because they have been the first to find their dividend reduced on account of the decline in the national income. So in New Zealand the loss of nearly eight millions of income in the first half of this year has fallen on the producers, especially the wool producers. In addition of the dividend to salary and Under these circumstances, combined with some difficulty in borrowing money from abroad to help to supplement the dividend, it must be evident to al] thoughtful people that one of two things must come about, either a reduction of the divideend to salary an<l wage-earners, or a reduction in the number of these and a corresponding increase in the number of unemployed. With the niarkets as they are the Dominion is living beyond its means; it must cut its clothes according to it* cloth; otherwise it will soon find itself in Australia’s position. With combined effort, on the part of all classes the Dominion might in a few years pay off its external debt and become the most prosperous and independent country in the world.—Taranaki Herald.