CAPITAL AND LABOUR

Dominion, Volume 12, Issue 302, 17 September 1919, Page 5

CAPITAL AND LABOUR

THEIR RELATIONS REVIEWED

ILL EFFECTS OF "GRIEVANCEMONGERS"

The relations of Capital and Labour formed the subject of, some interesting remarks made by Sir Janus O. Wilson iu the course of hi' 6 presidential address to tli9 conference of- the New Zealand Farmers' Union jesterdny.

"It is not in oiir province to discuss the general- question of tho relation of Cauital and Labour, although in the end fho farmer has to bear tho cost of the disputes which occur from lime to time; but I think were it not for the grievancemongers, the worker would admit he has not done so badly out of the war," said Sir James Wilson. "The expenditure lias been enormous, and we have been spending our capital freely, and most of it has circulated through Ihe workers' hands. All the securities we have in New Zealand have been pledged to pay the debt incurred by tho war. Ultimately, although the face laluo may be different that security rests on the land. Critics who iirgo more land taxation jjoint to the increased unimproved .value as shown by statistical tab'Jes. Yet. we have pledged far more than any increase to secure the debt created'

Valuation of Land. ' "It would'take too long for me to go fullv into the question of valuation of land, but I entirely dissent from the ■statement that the increase shown by tables has been given the land by the community. It has almost all been created by the industry of'_ the farmer, aided by.science .and tlie withholding <>f the value of improvement in valuing tho land. Everyone'who has land knows that an arbitrary value absurdly' called the 'unimproved' value ,is placed upon land, with no. relation to the returns whatever.. To this the valuer adds a sum for improvements, and these are gradually at each, valuation absorbed into 'unimproved' value.' In passing, I-might add one word as to these paper values and returns. Fortunately m New Zealand a great majority of those farming as an occupation hav<, a real love for the soil they fork, they have no desire to be tempted by speculators—Who make a living by buying and selling land-to sell out. On paper their land mav be valued highly, but when- they charco interest on their capital invested, and a reasonable sum for (heir, own labour ■ and management, and tho labour, rates, and taxes, very few make any real profit 6uch as a business man looks for. And when it is,said, that the farmers' land has increased by so many millions, he does not make any more profit. Suppose tho paper value says the land has increased =£40,000,000; that; at five tier cent., would mean: that the farmer should have an increased income of iC2.000.000 per annum. It "is very doubtful' if he does. _ I -irmly believe that any incrcaso is rnoio than swallowed up in expenses. In wages alone for workers on the land there has been an increase of a very large sum. According to the statistics of New.Zealand there are 94,805 males and 32,313 females under the heading of .employees. Even calculating 'that the 04,000 males have had a, rise of 10s. per r wei!k, this alone would amount to over two millions sterling ner annum. The fact is that illdicested figures are most misleading.

"We have met here under difficulties or transport, but wo are here to discuss nnd consider questions of moment at n time when. the whole world is out of •joint, and wo ought to lake our part to try and set our part of tho world aright. We have already seen great changes of thought, great change brought about by action—are we to sit still nnd watch only? I take it \ie are out to try and bring contentment and happiness to tho people— although ws l . are not credited with that purpose.- How can that be brought about? High wages cannot bring contentment, for wages have never been so high, and discontent is manifest. Strikes and refusal to work threaten ..daily,.'and; frequently.occur.. ..Propaganda work is going on only by one section of the community; their,leaders' are m deadly earnest in organising the workers. Circumstances have,given their talkative leaders the opportunity io visit every corner at" tho least exnento nnd deliver to picked audiences their 6hibboleth broadcast. It has been suggested that leaders of all sections of the people should meet and discuss matters fo as to arrive at sonio 'baais to satisfy alb '

Parting of the Ways? "Tho time has gone by for community l meetings, such as, the Anglo-Saxons had in their folk-moot, or tho Forum of tho Romans, when we have among those who would be sent as, representatives men who openly boast they are Bolshevists; who are pacifists as far as defending their country and their homes against an iOutshlo foe, but who glory in causing internal strife, who refuse to tako part in tho rejoicings for peace, and amongst whose unions a resolution :va6 passed demanding that "all war lofuis be repudiated;" What would bo tho use, even if it.wore possible, of meeting such representatives. It is for you-, at this juncture, to say whether the parting of the ways has not come; whether we shall counter tho organisation winch we see going on, or sit and watch thevstnfo, which will be unon us..or take pitrt in the battle. Unless they we opposed, the end is inevitable. We are sure that the farming community takes its stand, on tho side of law and" order. How can we help in the struggle. '

: Profit-Sharing Creates a Duty. . "In the= relation between, Capital and Tnbour it is gratifying to see that in mam,UVbu!inesses tho owners have Tec gnisedl that if they have a successful year the employees should, in justice be rewarded for then- share m the work. Once that ' principle is adopted and employees have the incentive of a bonus on their success, the relations between Capital and Labour must improve., Man must have an incentive to encourage him to give of his best, though it by no means follows that a money payment is the only one, for ambition to rise is 1 often tho greatest incentive of all. This process oi prohtsharing creates a duiy to both" employer and employee, which must; be recognised -that of 'continued employment. It is possible in moat businesses where the work is not intermittent, to have Tegular employees nil tho year round, and it is quite clear that any disturbance of business would make it impossible to pny a bonus. It must be recognised that wages have a relation ■to production, though at present it seems the fashion to think that' only the cost of living has to be considered, and as a local writer lately put it, this mav b> likened to a "dog chasing its tail." If the principle of profit-sharing wore extended thero is no doubt but that the relation between Capital and Labour would be much happier, and when that is the case production must increase, for'a man would not be assessing in his mind or in- practice, the amount of work he thought sufficient for the pay he received.