"To the Editor of the "Normi-Cuina Dau News"
Sin—There appears to be one pect of the economy cuts which the Shanghat Municipal Council has decided to inflict. upon its employees, fand that 4s the effect that the reduc tion In salaries will have on the trade of this city.
There 1s no disputing the fuct that during. the past two or three years the purchasing power of money has been Fedueed, After all true wages are decided by the purchasing power of the money received by the worker.
Now to reduce the amount of those: earnings means that the purchasing power of the worker is still further Fedueed, and this wil In time. be reflected in the sales ut the various business houses of Shanghat, Purchasing power means the com modities for Which a given unit of money will exchange wt a given time "and place. Price means. the number of unity of money for which a given commodity" will exchange atu given time and place, and purchasing power muy, therefore, very either because Were isa change the value of money apart from Hoods, or becuuise there Is a change In the value of goods part from money.
So far ay municipal employees wre concerned there will be a change the value of money, because they will have less to spend as the result the cut in. wages.
Assuming that the average cut round about forty dollars with some-Uhing like 800 munteipal employees, Uhhis-will-mean i xum of thirty-twe thousand dollars per month will not be available to the -workers for the purpose of purchasing commodities, and as a result traders in this city Will have w tower demand for their goods by this amount, This will have further repercussions in that it will mean that traders will begin to exercise economy,.und stof reduce tions, or reductions in earnings, will curried out by traders, which wit sft further affect trade in this city Tam of the opinion that our Couns cil of business men have once more proved that wu yood business man floes not necessarily mean that {ya good economist, that most tie trouble which we are experiene~ Ing in business circles terday Is due to we fact that the business com-are Ignoring economic laws, end applying others which have but one effect, the ultimate destruction the body politic, Whilst 1 was a member of the British Civil Service, wages cuts caused the vast majority of the mem= hers of the civil service to become members of a trade union, trade unions Which were affiliated (0 the Labour Parly, 1 refer to the National Union of Clerks, the Civil Service Union, aid the National Union of Ex-Ser= vice Civil Servants. These three bodies by Joint action were able to render voidable service to the mom= hers of the civil service specially those in the lower grades, who naturally: suffer most when it' comes to a question of wage cuts. "Even the Police found it necessary to est abolish its own union, What has been the outcome, it! was recognised some years ago thal the Government must reduce penditure, "but the scale proposed was not acceptable to the Unions, a real "was adopted which the Gove ernment stated would be temporary, and list year those cuts were tiered to the members of the Civil Service.
1 well remember live Star ort water the tines of the hey bad behind. them vrganisaon, "and when tions were imately carried onl, they were accordance wilh an agreement Teached by the representatives. of the Union and the Finance Committee of the Municipal Council, Here then is an object lesson to the present members of the Mut pal Council, let them form a 'Trade Unton along the lines of those which eater' for municipal and civil ser-Vanls at home. I feel confident that Mr, Herbert Elvin, Secretary of the Naiional Union of Clerks, "Holbor London, will be pleased "to ren any assistance to those interested.
A flat rate such as that adopted by the Council will breed "discontent amongst the members of the Council,. notwithstanding opinions that have been made to the contract because, the lower grades will suffer most a5 their purchasing power is) effected more adversely" than thal fof the higher paid oMfcial. it is rather a pily we have not a labour party here in Shanghai to oppose "the" "lass" representation sch holds power in the Counc At any rate, the Chinese counelllors had the courage to vote against the proposals,
to an employer who had to resign, although he Was whitewashed by the Council, has demonstrated that it "lacking in administrative ability, In its handling of these cuts. Per-hops the result will be that Couneit employees will decide that they can longer purchase the goods - of Uhose firms which the British and American representatives are Soclated with, and. also stop using the ships of the two British shipping companies represented, 'Then the foreign representatives might give serious consideration to the pur chasing power of the money that is ald for' services.
Nor A Counctt Estruover.
Nov.
Text read from the printed page and cleaned; old type leaves the occasional error.