The Evening Star WEDNESDAY, JUNE 22, 1870.

Evening Star, Volume VIII, Issue 2223, 22 June 1870, Page 2

The Evening Star WEDNESDAY, JUNE 22, 1870.

Our neighbors in Canterbuury are on the qui vice already, and are said to be going to meet together in order that they may determine upon their rightful share of the guaranteed loan for immigration purposes. We hardly see how it is possible that any public

meeting can settle that point, especially as it is understood that the loan is not to be applied to immigration alone; but tlitct a portion of it is to bo employed in public works. It is evident, ’however, from the intimation of such a movement, that Canterbury, like Otago, is suffering from a dearth of labor. Nothing can be plainer than that the due relationship between capital and labor is disturbed that in fact there is more capital than can be profitably employed at the present nominal rates of labor. \\ r c use the term “ nominal ” advisedly, because, the stated rate of wages- per day by no means represents the actual amount received. Wo do not believe that thcic are many unemployed who are willing to work, but we are quite prepared to believe, from the testimony of reliable men, that there are many who are only partially employed, and that thus the actual annual wages received do not amount to more—perhaps not to so much —as they would do, were such a rate accepted as would enable a capitalist to employ his money profitably. Nothing is more difficult than to enable men to understand the causes of depression of trade. Sometimes it arises from one untoward event —sometimes from another. Most commonly the cause lies hidden below the surface ; but if it is discovered, and laid bare, men do not readily agree upon the remedy, It sounds very strange to tell those who are walking about with their hands in their pockets, that one of two remedies would give them work—a lower rate of wages or a. stream of immigration." Both plans are distasteful, and the latter is past their belief; but it is nevertheless true, and the most desirable of the two. Let every man who is unemployed ask himself how it was there was no grumbling about the rate of wages five or six years ago. At that time there were more adults in the Province than there are now. Thousands of men left us, but while they wei’e in the Province farmers never grumbled about wages, j Bread was dearer, meat was dearer, everything was dearer, and labor in demand. It might naturally be imagined, were the doctrines of those who oppose immigration true, that the withdrawal of so many men from competition in the labor market, would have caused an immediate rise in the rate of wages, but instead of that they have ever since had a tendency to fall. Here then is a difficulty which working men have not resolved in their theory, that there are too many laborers in the Province. And also is a refutation of the theory, that it laborers are 'imported capitalists must be imported too. It is very plain that there was capital enough at that time to give full employment to a larger number of able-bodied men than are at present in Otago, and the attempts at developing new industries show that there is now capital seeking ivestment. It should be remembered that capital is neces- : sary to successful labor, but that in order to induce its possessor to use it, there must be a fair prospect of profit and return for risk, ‘Without this no man in his senses would be at the labor and endure the anxiety of attending to business. When therefore, as at present, the demand for the products of labor is limited, the capitalist can see no inducement to present investment. Farmers, instead of increasing the breadth of laud devoted to the growth of cereals, will let a portion . of their arable land go out of cultivation, avid feed stock upon it, as the least costly mode ot employing it. Consequently fewer laborers will be wanted. A.S there are houses enough to shelter the present population, and as building more at present prices is not likely to be a very paying speculation, few enter . into building; and consequently the demand for bricklayers, carpenters, and that class of skilled operatives, is limited. The fact is, that production has overtaken consumption: and if there is to be a revival of demand, there must be an increased number of consumers cither in or outside the 1 roviuoe. Nor would the immigration of a number of the Home unemployed be bringing them into competition with : those who are here. For their sustenance, if they come in sufficient number, the labor of those now here and their own would not be more than is • required ; and if they are followed by a gradual flow of immigrants, a continuous demand will follow that will give full and profitable employment to all. A reduction in wages is necessary to enable producers to compete in the markets of the world ; but it would he : better for all if there were so many well employed consumers in the Province as to render such reduction unnecessary.