POINTS of INTEREST

Wanganui Chronicle, Volume 74, Issue 192, 15 August 1931, Page 13 (Supplement)

POINTS of INTEREST

THE HIGH WAGES ILLUSION. “While there have been a great many wage reductions made in American industry in the past 18 months most of them'disguised, but some of them quite open—there have been very few strikes ” the New York correspondent of the Times Trade Supplement wrote recently. “The reason seems to be. however, not that labour is anv more 4 reasonable* than it has been at any other times of business depression, but that unemployment for a long time has been so formidably large that to give up a job has been patently to come close to committing economic suicide. The labour unions still cling desperately to the theory that high wages make prosperity, although its supporters among the employing classes are rapidly dwindling in numbers, and I only recently the president of the] American Federation of Labour de- ' clared stoutly that his organisation j would resist to the utmost attempts to | lower wage-scales. However, even as > the necessity for self preservation has influenced many businesses to cut their wages costs, as well as other costs, so it has influenced workmen, members of unions, to make secret individual bargains with their employers by which they give the latter either direct or indirect rebates. These rebates are paid in various ways, but the commonest way is as a straight return payment to employers of part of the wages within 48 hours or so after the wages have been received. The practice is naturally not advertised, either by employers or by employees, but there can be no question that it has already reached large proportions.” UNITED STATES POPULATION. A prediction that the population of the United States would become stationary by 1970, and subsequently decline, was made at the meeting in London of the International Union for the Scientific Investigation of Population Problem by Dr. Louis Dublin, chairman of the American national committee of the union. “The birth rate in all civilised countries has been declining at an accelerated rate for the past fifty years. In America we can definitely forecast

that, if the decline continues at its present rate, the population will become stabilised around 1970, ” said Dr. Dublin. “The crude rate of natural increase is already at a low figure in the cities of the United States. In many of them the true rate is either zero or a minus quantity at the present time. Studies we have made indicate that the papulation of the country will become stabilised as to age composition in less than fifty years. When that happens the population of the country will be in the neighbourhood of 150,000,000, and the expectation of life at birth will have increased to approximately seventy years. The true birth rate and death rate will balance at about 14 per thousand. The true birth rate in 1928 was 17.3 per thousand, and the true death rate in that year was 15.6, leaving the true natural increase at 1.7 per thousand. If the true birth rate does finally fall to 10 per thousand, even with the best morality, the population will decline one half in eighty years. ” THE FAITH OF CECIL RHODES. presiding at the annual dinner of the Rhodes Scholarship Trust, Mr 11. A. j.. Fisher, warden of New College, said Cecil Rhodes was a living embodiment of imagination in action. He was not faultless; he committed one grave political error—due, the speaker thought, to the impatience which was in turn due to a severe physical malady—an error great enough to obscure or to damage any career lesser than that of Rhodes; but his life was framed on so great a success that even this error was rightly held by posterity to abate but a little of his fame. He differed from the ordinary run of successful business men by reason of the fact that his career was ennobled and embellished by a dream. This dream was first conceived when he was an Oxford undergraduate, and it did not fade away into thin air, as happened so often to he dreams of young men. It stayed with him through his life, resisting all the disillusions that came to men as the years passed, a spur to ins energy, a motive to his career, a political influent*. in South Africa and it the world. This faith was powerful because it was conceived in very simple terms. He believed iu the Nordic races, he believed in the British Empire, he believed in Oxford University, and he believed in the power of generous youth to ameliorate the conditions of mankind. The object of his great foundation, at first confined to members of the Anglo-Saxon race and afterwards extended to Ger many, was to create a feeling of fellow, ship among the leading young men of those great and energetic races calculated to secure the peace of the world. POSTPONING THE WAR DEBTS. The exact significance of the term “postponement” iu the proposals by President Hoover an’ Mr Snowden re gardiM war debts has not yet been expiained. According to the original annuuncemei.t on June 21. 44 the American Govenun»nt proposes the postponement during one year of all payments on in-ter-Govenin.cnul debts, reparations and relief debts, both principal and interest, of course not including the obligations of Governments held by private partite.” An attempt was made by the Louden Financial News to elucidate the exact scope of the proposed moratorium. “A proposal to postpone debts for a year,” it remarked, “might imply that the postponed payments would fall due for settlement immediately after the year was over; in other words, that Europe would be called upon to pav up on JuH 1. 1932, the £50,000,000 or so which it had been excused from paying between July 1. 1931, and June 30. 1932. That would, of course, be a mere

| CANCELLATION OF WAR DEBTS. I A warning that the moratorium proposal did not imply any modification of the United States attitude regarding « war debts was given by President Hoover in the statement announcing his , plai of postponing payments. 4 4 The es- 1 sence of this proposition is to g’ve time to permit the debtor countries to re- j cover their national prosperity. I am i suggesting to the American people that they be wise creditors ii* their own interest and be good neighbours,” said Mr Hoover. “1 wish to take this occasion also to frankly state my own views on our relations to German reparations and the debts owed tc us by the Allied Governments of Europe. Our Government has not been a party to or exer- . eised any voice in, the determination of | reparations obligation. We purposely I did not participate in cither general reparations or in the division of colonies ' or property. The repayment of debts i due to us from the Allies for advances 1 1 for war and reconstruction was settled upon a basis not contingent upon Ger- . man repara tins or related thereto. 1 Therefore, reparations is necessarily • wholly a European problem with which we have no relation. Ldo not approve in any remote sense of the cancellation of the debts to us. World confidence would not be enhanced by such action. : None of our debtor nations has ever , suggested it. But as the basis of the l settlement of those debts was the capacity, under normal conditions, of the debtor to pay, we should be consist- . ent with our own policies and principles ( I if we take into our account the abnorj j mal situation now existing in the world. I am sure the American people have no desire to atempt to extract any sum beyond the capacity of any debtor to pay, and it is our view that broad vision requires that our Government should recognise the situation as it f tXI ” THE EMPIRE’S INDUSTRIES, L The idea of co-operation between » British and 'Dominion industries with a > view to complementary production rei ccutiy received cordial endorsement by . the Times. 4 4 There is no room for . cherishing even a vestige of the old - half resentful regret that the Domiii-

.. ions have ceased to devote themselves q exclusively to the production of food . and raw materials,” it remarked. “It . is an out-of-date attitude in these days, e and it was always a mistaken one. If ,- the proper co-operative spirit is shown, , the more complete development of the , Dominions should result in a greater, , not a smaller, demand for goods prog duced in Great Britain, though naturg ally there will be a change in the type g of goods required. And there must* be [not only a readiness to co-operate with j Dominion manufacturers in the develop. s • merit of Dominion resources and Dornin r | ion industries, but also a readiness on [' the part of British manufacturers to cofl operate with one another in order the 5 I more effectively to co-operate with the e | Dominions. Happily the habit of co- . operation is already taking firm root - among British industrialists. By fosters ing its growth and promoting its effec;i tive use the leaders of British industry n can do something to mitigate the effects > of the present depression and put the country in a position to take full advantage of its opportunities as soon as world trade begins to revive.” THE LETTER OF THE BOND. 4 t Arguments upon which insistence on 1 1 payment of war debts could be based i- were expounded recently in an address in Chicago by Mr W. O. Woods Trea .. surer of the United States. “ Public H sentiment in America would not permit D a reconsideration of the debt settlej- meat agreement,” he declared. '‘The 0 Americans will not agree to cancel and s the debtors cannot afford to repudiate. , Hence further discussion is worse than u useless, as it will only breed ill-feel-s ing.” Mr Woods said there were four s major points in the question whether v war debts should have been cancelled. ' 44 First, as a matter of law,” he said, .. 4 4 the one who intervenes and stops the perpetration of a wrong committed by „ the strong against the weak is never k liable to the weaker combatant for y damage inflicted prior to the intervention. Secondly, history affords no precedent for charging to an ally expenses or damages incurred prior to the allii ance. Thirdly, the debtors cannot afford to repudiate their obligations or ’insist on reductions as a matter of . right, for it would set a precedent for .the idly assuming an obligation to rea ‘store losses already inflicted by the agI gressor. Fourthly, the United States : owes a great debt to its bond-holders . which must be paid by the American ‘{taxpayer. Forgiveness of the debtor inations’ obligations to the United States would force payment of the forgiven debt upon our citizens instead of ‘ i the debtors’ citizens. Our citizens would not support an Administration that would permit cancellation.”

mockery, and cannot, therefore, be Mr Hoover’s meaning. Doubtless what he 1 intends is that the 1931 32 payments ' i should become payable in 1932-33—that I the whole series of instalments should be put back a year. That would mean •in effect that America would not re--1 ceive until 1989 the £50,000,000 which 1 she is now willing to 4 postpone.’ That 1 ‘ indicates the real generosity of her of--1 fer—for the present value of £50,000,- • 000 due in 1989 is almost negligible.” J 7"?