BRITISH AIR FORCE VOTE

Dominion, Volume 12, Issue 274, 15 August 1919, Page 7

BRITISH AIR FORCE VOTE

MINISTERIAL REPLY TO CRITICISM. Condon, August 12. In the House of Commons, the Air Minister (General Seely), replying to charges of extravagance in the vote, stated that the total of sixty-six millions included a large sum for completing war contracts. The Government had contracted under the armistice for the production of fifty thousand aeroplanes per annum. The Air Force had been reduced from 30,000 officers to 10,000, and from 261,000 other employees to 63,600-Aus.-N.Z. Cable Assn.

ers, to supply commodities of the lowest and cheapest quality which consumers can bo induced to accept. Consumers are.in many cases unable to judge by mero observation tho relative value of commodities, and this must tend to drive superior goods off tho market, to the direct disadvantage of the consumers themselves. Where prico r.ssociations exist, all members having to quote tho same price, the competition among ihe manufacturers,- parties to the association, becomes ono of quality, and one direct and important result of these price associations is ' undoubtedly a tendency to riso to a general higlier lovel in production in this respect. Tho elimination of competition | results in a liigher lovel of price and tho provision of additional profits, whereby tho manufacturers aro encouraged and enabled to improve their processes and, by scrapping old plant, the instalment of new machinery and the adoption of new methods, to l'educo appreciably their costs of manufacture."

Another of the great advantages of trade, combinations, according, to somo of tho employers who helped to form them, is that they enable specific trades to raiso prices to tho consumers in tho homo market,- and thereby permit manufacturers to meet competition in foreign markets by Belling at a loss. There was a general agreement among representatives of associations," states (ho committee in its report, "that one of the beneficial results of the formation of associations sufficiently powerful to control and maintain prices in tho homo market was that it enabled British manufacturers to extend their output by selling their products at a lower price, or even at a loss, in foreign markets. Public Distrust. But even after listening to the sooth, ing voices of tho trusts, the members of the committee were unable to lid their minds of tho suspicion that such combinations might bo used to oxpto:; the community. "Tliero can be no doubt, and it was generally admitted by U-. representatives of associations,'" states the report, "that tliero is a great deal of public distrust with regard to the operation of trusts, combines and associations, and we have no doubt that the novel experiences of the past four years, the disclosure of tho war profits mack by certain firms, and the repeated kllugntions of exorbitant profiteering • n the part of capitalists during the war, whether true or false, have tended greatly to aggravate existing suspicion and distrust on the part of the public with regard to the operation of associations and combines AVe are unable to share the jptimism of those representatives of associations] who were of opinion that in no crcunistanccs was there any possibility of their operations loadiug to excessive prices or to the detriment of the public. While fully recognising the honesty with i hich the great bulk of business in this country is conducted, it is obvious thal_ a system which creates virtual monopolies and controls prices is always in danger of abuse. We are confirmed in this view by a survey of the operations of similar combines and associations ' in other countries."