WHERE THE DOLE GOES

Wanganui Chronicle, Volume 74, Issue 149, 26 June 1931, Page 5

WHERE THE DOLE GOES

REACTION ON TRADE FUTURE MARKET OUTLOOK FALLING PRICES FEARED AUCKLAND, June 24. 44 The great weakness of the whole prospective market position for New Zealand produce is the very serious situation in which Britain is placed as a result of the dole system,” said Air A. Bowlands, of London, whoso association with the firm of W. and R. Fletcher, Limited, both in New Zealand and England, gives his views on authoritative note. Air Rowlands is revisiting New Zealand after an absence of six years. 4 4 Every thinking person in Britain realises that the Old Country cannot possibly go on paying huge sums of money for the unemployment dole without getting any return in productive work,” said Air Rowlands yesterday“At the same time the dole disbursements have provided a very big factor in enabling the population of Britain to absorb New Zealand’s meat and dairy products during the last few years, and I am very much afraid New Zealand, Australia, and the other Do minions will receive a very serious jolt, when an amendment of this system has to be brought about, as it must within a very short time.

4 4 Although probably the British working man will quickly realise his true situation—that he is in competition with keen workers in other countries and must, get down to work on a basis that will enable the manufacturer to produce at a profit in competition with Germany and the United States—there will be a gap to bridge between the stopping of the dole and the building up of employment throughout the industrial areas. During that interval the New Zealand producer must be prepared to face a serious set-back in prices unless it all synchronises with poor seasons in the other countries producing the primary products in competition with us.

44 1 t is unfortunate that this situation should be Government-created,” said Mr Rowlands. 4 4 The overseas dominions have had some benefit from it, but they have not had it all. It is they who will feel the worst brunt of the reaction. There is a tendency, even in New Zealand, for everyone to run to the Government to put right everything that seems wrong. Alany think ing people feel that it is just this tendency and its results that have aggravated the present world slump—too much Government interference by tariffs, taxation, control boards and trading. A Government is too slow in its decisions and too widespread in its operations. The world is beginning to realise that companies and individuals make their mistakes in business and create hardships, but they are nothing to the hardships that are created when a Government tries its hand and makes a mistake.

4 ‘We have an illustration of the false economies that grow where a Government conducts trading in the case of certain Government undertakings in countries not very far from us. When the traffic or income to railway, postal, or other trading department declines, does the State do what a firm has to do, that is, cut its expenditure to suit its income and go out after increased business by every manner of means? No; it simply increases the charge for its service and aggravates still further the troubles of its taxpayers, bringing real business and employment almost to a standstill.”