UNEMPLOYMENT

Dominion, Volume 15, Issue 23, 21 October 1921, Page 5

UNEMPLOYMENT

MR. LLOYD GEORGE’S STATEMENT

GOVERNMENT’S POLICY OUTLINED STATE GUARANTEE TO ASSIST INDUSTRIES Mr. Lloyd George says Britain is confronted by the worst period of unemployment for a hundred years, as a result of the war. The Government has .decided to extend the export credits schema, and to guarantee interest on'new capital requied for railways and electrical works calculated to proment employment.

By Telegraph—Press Association— Copyright London, October 19. In his statement in the House of Commons on the unemployment problem, Mr. Lloyd George, replying to charges that the Government had done nothing, said that in 1919 considerable sums were voted to restore trade in Central Europe, and a sum of 426,000,000 was voted to the export credit scheme,' while in 1920 a Bill was carried which added 48,000,000 to the Workers’ Insurance Fund. Under that scheme 448,000,000 had been distributed to the unemployed and flieir families. The Government had decided to ask for a further sum under tho scheme to settle ex-service men overseas. Britain's Dependence on Overseas Trade.

There were undoubtedly signs of revival in some important industries, but in others there were no signs of improvement. Trade with Russia tot eight months only “totalled a little over 43,000,000. There could not bo considerable trade improvement for some time, and there must be considerable unemployment. Relief work at best was unsatisfactory, and doles were worse. The beet hope was not for a short-lived feverish boom, but for slow and steady improvement. Britain was more dependent on overseas trade than any other country. The world needed our goods, but could the needs be converted into demand, .and demand into payment. It had become a question of the exporting trader taking a risk and the. Government sharing in it. The Government would amend the export credit scheme and extend it to all countries, including the British Empire. It was proposed to raise the guarantee to traders from 85 per cent, to 109 per cent., and fix the maximum for each firm. War the Cause of the Trouble.

We were confronted by the worst period of unemployment for a hundred years. There were 1,250,000 unemployed, and tho greatest unemployment was in the metal trade. The whole cause could bo summed up in one word —War. There were two possible policies: First, to do nothing; second, for'tho community to do the best that its restricted means would permit, and render such assistance as it could. No one seriously advocated the first course. Apart from considerations of humanity, the Government unhesitatingly recommended the second course. It was untrue that so far the Government had done nothing. ‘Wc all have been stigmatised as callous capitalists.” Loosening the Wheels of Industry, There was much to be done al home and abroad in loosening the wheels of industry. The first objective was the restoration and improvement of the means of production and transport. Undoubtedly the cost of production was ton high. There was also the difficulty of raising capital for some enterprises, and still greater difficulty in raising it at a price that would not burden enterprise. No Government could find a remedy for the high cost of production. That was a matter for the employers and the employees; but the Government could guarantee interest on the new capital required for railways and electrical works calculated to promote employment. Ths total State guarantee would not exceed 425,000.000. A committee of financial and industrial experts would be appointed to administer the scheme. Also, (here would be measures to relieve distress. The relief works begun would be proceeded with, and a further sum of .£10,000.000 allocated. Levy for Relief Purposes, For the purpose of assistance to the unemployed for six months, a weekly sum of ss. for a wife and Is. for each child, to a maximum of 95.. would lie provided hj- a compulsory levy of twopence each from employers and employees, with threepence from the' State. In tlie case of women, girls, ami boys the levy would be one penny, the State providing twopence. A Government loan would be granted to guardians to ileal with necessitous cases. "However, expenditure must lx - cut down.,” concluded the Premier. "Nothing can get rid of the fact that we are eight thousand millions in debt,' and that we cannot build up our strength on patent medicines. Trade will never he restored .until tho cost of production is reduced.” He appealed, to tho Labour leaders to face the problem. Everything depended on a complete understanding between the workers and employers and tho good will and co-opera-tion of the nations. —Aus.-N.Z. Cable Assn. CREDIT SCHEME DISCUSSED (Rec. October 20. 7.20 p.m.) London, October 19. Tn the House of Commons a resolution was submitted to give effect to the Government’s proposals. jlr. J. lx. dynes welcomed the credit scheme, but hoped the Government assistance would involve a minimum of interference with trade. Ho believed that if workmen could make a contribution in reduction of the cost of production it would be to their primary interest to do so; nevertheless, it was eisentinl that the standard of living should not be lowered. He thought the supplementary grant under tho insurance scheme inadeqrfate. Mr. Asquith regretted that the proposals were not brought forward earlier. He regarded the credit scheme, in view of the fluctuating exchanges, in tho nature of a gamble. If unemployment was to ho grappled with there should first be a remission of the crushing taxation. which was a direct cause of unemployment. The root cause of unemployment was international. There should therefore be /ft reconsideration oT the-whole problem of international indebtedness. lie stressed the importance of trade with tho Dominions. There was no reason why with a wise development of inter-imperial resources, assisted by the Imperial Government, we should not establish a trade between Hie Dominions and Britain which would altogether overtop our European trade. Sir Ramsay 'Steel-Maitland considered lliaf the system of reparations in th« Peace Treaty contributed to tho prevailing instability and unemployment. This system called for early revision.—Aus.N.Z. Cable Assn. “THE TIMES” CRITICISM (Rec. October 20, 11.10 p.m.) London, October 20. "The Times.” in ft leader on the Government scheme, says there are some

obvious defects in it. It has been hurriedly prepared under pressure of public agitation, and is open to objection on account of entering into general trade affairs of the world. But the times have changed. The country is faced with the gravest industrial emergency in its history, therefore the proposals must be scrutinised in the light of stern facts' which compelled tho Government to make them. “We are strongly inclined to believe that tho most serious defect is that the scheme tends to increase the outlay and consequent taxation, without offering the country any. prospect of immedir. relief from the crushing fiscal burd■•!*. Nothing, we are persuaded, would r.-.ore ■ effectually stimulate enterprise than a. bold reduction in some of the heavier forms of taxation.”—"The Times.”

SCHEMES WELL RECEIVED IN INDUSTRIAL CIRCLES BANKERS PROMISE ASSISTANCE. (Rec. October 20, 10.25 p.m.) London, October 20. The Premier’s proposals for an extension of the trade credit system and assistance iu raising capital have boon well received by representatives of big industries. The details so far as they have been made public leave littlel room for criticism. Both schemes have been thoroughly discussed, and are regarded as sound and workable. Separate committees are being established to deal with the two proposals. It is understood that the Government has offered to leave the management of the credit system in the hands of leading bankers, but the latter have decided that the scheme should be managed by a committee within the Overseas Trade Department. It is noteworthy that a conference in this connection was of a friendly character, the bankers giving every assurance of future assistance.—Reuter. IDLE STEeF WORKERS MANUFACTURERS REDUCE PRICES. London, October 19. The English steel manufacturers have reduced prices 70s. per ton, and Scottish manufacturers 30s. per ton. The price of the Scottish manufactures is now exactly half that ruling in January, but still only "25 per cent, of Scottish steel workers are employed. Only fifteen Scotch furnaces are working out of one hundred and twelve. —Aus.-N.Z. Cable A san. MINERS WAGES READJUSTMENT ONLY ALTERNATIVE! TO CLOSING PITS. London, October 19. Seven thousand miners are unemployed in South Wales. October wages have been officially fixed at 27 per cent, above the September rates. The Yorkshire Mining Association, replying to Mr. Smith’s allegations of bad faith, declare that some owners are unable to continue to pay the wages specified in the strike settlement, which was drawn up hastily. A readjustment of wages was the only alternative to closing down the pits.—Aus.-N.Z. Cable Assn. BALANCE OF STATE COAL SUBVENTION UTILISATION IN EASING STTUA- . TION' URGED. (Rec. October 20, 11.10 p.m.) London, October 19. Members of the executive of the Miners’ Federation attended tho Board of Trade in order to induce tho Government to permit three millions of the unexpended balance of the State subvention to bo utilised to ease wage reductions, and assist the pits whose financial position is serious. Mr. -Frank Hodges said there were at present 175,000 minors unemployed, and 73 per cent, of tho workers wore employed only on three days a week.—Reuter. OVERSEAS SETTLEMENT POPULATING THE EMPTY LANDS. (Rec. October 20, 10.25 p.m.) , London, October 19. The 'Morning Post” urges that an Imperial settlement authority should lie established, which would not interfere with any Dominion energies, but net as a liaison agency between the Dominion migration offices, mobilising an army of settlers, and moving divisions of tho Army wherever there was empty land — Aus.-N.Z. Cable Assn.