UNEMPLOYMENT SCHEMES

Wanganui Chronicle, Volume 79, Issue 91, 18 April 1935, Page 6

UNEMPLOYMENT SCHEMES

oir,-- ai the recent Municipal Conference the necessity for same additional scheme to provide extra employment, was stressed. At a recent meeting of my league. Mr. Percy Tingey advocated a part internal currency scheme, which was referred to a subcommittee on which to report. The sub committee passed the following resolution : ‘‘That this meeting approves of steps being takau to secure the issue of» £1 municipal debentures in lieu of £2O with a view of issuing £lOOO in £1 debentures for extra employment during the current year, >uch debentures to be issued as extra remuneration for specific works under ihe unemployment scheme-.'’ I he Municipal Act allows the council io raise money by way of debentures in denominations of not less than £2O, providing that such monies raised by way of debentures is specificially used for unemployment works. £1 debentures—if decided on—to be used as additional payment to the unemployment funds allocated. We have the assurance that many business houses would be prepared to accept these municipal £1 debentures in payment of their accounts from the workers: the council to accept same from the business people for payment of rates and other services. My committee is of the opinion that those debentures £1 notes, circulating each week—assuming that the ratepayers will take advantage of paying these notes in—will result as follows: Firstly: It will give extra emplovment without the cost of taxation, as the notes will be issued free of interest, similarly 1o the New Zealand Reserve Bank notes. Secondly: It will save the City Council from increase of their overdraft bv at least £25,000. i.e.. £5OO per week velocity, for these notes, by being kept in circulation the council will be able to use them as wages, obviously a saving of interest on £25,000, which, at 2A per cent., would p-yual £625. Thirdly: It will enable the council Io undertake work apart from their ordinary maintenance work, viz. afforestation gorse or other lands, rereclamation of river side road, etc. Fourthly: It will provide further funds for helping the unemployment position, the necessity of which was dressed at the recent Municipal Conference. Fifthly: Those debentures paid to the workers will enable them to pay rents or rates. Sixthly: It would ensure a large amount of rates being paid at an early date, and should obviate the necessity for a 21 per cent, cash discount, which osts the City Council over £lOOO a yea r. The £25,000 additional turnover would be helpiul. and I. consider that it is well worth while adopting the suggest ion. In view of the municipal election-, it would be of interest to have eamlilates ’ opinions on the scheme. Thanking von. I am. etc.. D. E DUSTIN’. President. Wnaganui and District Development League.