MR. WESTON AND WAGE RATES

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

MR. WESTON AND WAGE RATES

Sir,—Permit me to add a contribution to the above subject. It would appear from the arguments pro and con by those who object to high prices, and those who object to wage reductions, that one wants prices brought down, to pre-war rates and the other, that wages should remains as at present, in order to give the wage earner the larger margin over his expenses. In the battle for “margins,” whether it is the worker whose only capital is his brain and muscles, or the speculator whose “margins’’ have been large enough to give him the cognomen of Capitalist. Your interview with Mr Phil Nathan, shows how the Customs tariff adds to tho prices of the breakfast table commodities, by a tax that costs 50 per cent, to collect. If this tax was removed, then in fairness to those speculators, and employers, a reduction in wages, could be made as real wages were not reduced, the purchasing power of the workers wages being enlarged. This correspondent found out the truth of this axiom on his visit to Australia when Sydney was under the regime of “Free Trade.” My wages went further than in New Zealand, and in a short time I was able to take up a Savings Bank account, which I had been unable to do here.

The agitation of employers in industries for support of same per a Customs tariff was tho breaking up of the free trade port of Sydney; 10 per cent, ad valorem came in under the “Dibbs Government” which meant 124 per cent, to the consumer. The N.S.W. Government under protection of industries is a standing example of the folly of taxing the whole populace for the benefit of the investor in secondary industries. One is inclined to agree with the suggestion put forth by yourself in a leader that granting a bonus to assist the establishment of the industry for a period of a few years, until the infant industry could walk on its own feet.—That I believe is the gist of your leader, instead of increasing taxation in the form of Customs tariff.

Your interview with Mr Phil Nathan, brought out the suggestion of raising revenue taken from “Mr Stephen Leacock’s sales tax suggestion.” The tax—as maybe agreed upon for carrying on the states business. To quote — “The onus of the collection of this per centage of sales tax rails upon the salesman who franks the invoice the same way a receipt is now franked. The Government therefore gets the full amount of the tax at a minimum of expense to the Government and the public. This suggestion would appear the most economic proposition and would open up a largo field from which to gather the needful money, as everyone who sells, whether it is his labour or products contributes to the revenue of the State. Thus, as Mr Natham states, '‘taking everybody according to their ability to pay” which certainly is just. The Hon. Weston’s righteous indignation against the Government pursuing a railway policy of construction of throe lines, whose interest bill is £735,000 . to be sympathised with, seeing motor transport is forging ahead and is a serious competitor. His suggestion is that it would be better to pay £3 per week to the* workmen for four years for nothing than continue with a losing investment. The same argument could apply to a certain industries supported by a tariff, why not have free trade, and revise our system of taxation and give the primary producer a fair go, as he has to compete in the world’s market, and should be abe to “buy in’’ on the “ground floor.” Why not advocate a gradual reduction in tariff? J.H.F.