MONEY VALUE

Wanganui Chronicle, Volume 73, Issue 446, 11 December 1930, Page 11

MONEY VALUE

Sir, —The above subject we hear of very often these days, and on my few remarks I would like to be enlightened. France after the war overthrew her old- and built a new, currency. A franc, which was worth ten-pence in pre-war days, is now only valued at two-pence in English money. Now it has been said that low wages (sixpence per hour, and long hours (60 hours per week) is the reason why France is so prosperous and no unemployment. Now if a Frenchman’s wages is sixpence an hour in English money, and as above stated, a franc is only valued at twopence, then he must receive three francs per hour, the buying power of 'which is thirty pence in France. Therefore if he works sixty hours per week he must get a weekly wage of £7 10s (180 francs) in French money, but only valued at thirty shillings in English money. Also in his favour, the cost of living is about half what it is in New Zealand. Therefore the French with an hourly wage of sixpence in English money, but thirtypence French value, can buy 10 loaves of bread (which cost threepence) for one hours pay, and a New Zealander getting two shillings per hour can only buy four loaves at the most.

Sixty hours per week and working every day including Sundays for the wage of £4 Is per week, or Is 4 l-5d per hour, are the conditions in our dairy factories I say if long hours and low wages is tho salvation of industry, then our dairy industry should be prosperous.

The wool market is causing us a lot of concern at present, so let us compare the value of French and English money in reference to it. Wo know by our papers, that the continental buyers are buying most of our wool at present, and we will take the average price of wool at five pence a pound, Bradford buys the wool at that price and wc in N.Z. have to pay about £5 for a suit made by them. Now, the French buyer, to buy the same wool at the same price, has to pay twenty pence for it, which, according to our value is only five pence in English money. When the suit is made in France, wc find that it costs about half the British suit, and not five times more (twenty-five pounds), according to the value of the franc in English money. In my opinion the gold standard is what is causing our trouble at present, as I think that the only way to make a pound worth twenty shillings, is to keep the price of primary products down, and as we know, the land is the root of all questions in New Zealand. If wool can be bought at five pence per poud which cost ten pence last year, the purchasing power of a pound must be double now, than it was last year in regards to wool. The man on the land who is still producing as much, if not more than last year, is only receiving half the money for his products this year. No doubt the farmer will have to pay seven per cent, interest, and has to pay the same amount on half the income, which to me is doubling the rate of interest. Two things are required to produce, capital and labour, and if we reduce the labourers wages when times are bad, then shou-1 not interest suffer a reduction also? By reducing interest not so many would suffer, as would do so by reducing wages. When times are good, money is cheap, when times are bad, money is dear, I think if it was changed about, and money made cheap when times were bad, would help us to get over the depression quicker. I am only a common worker, so perhaps some student of economics, could enlighten me on the subject. WORKER.