WAGES AND COSTS

Evening Star, Issue 19790, 14 February 1928, Page 5

WAGES AND COSTS

A MODERN PROBLEM Unless we take some definite steps, which we have not yet done, trade will not improve. It is of supremo importance that the British people should realise the seriousness of the situation, said Mr Sccbohm Kowntree in _ a speech reported in the ‘ Yorkshire Post.’ 1 have every confidence in the British people, both managerial and workers, to deal with the problem effectively' and successfully if once they grasp what it is. But do not let us bo jiving in a fool’s paradise, thinking all these things will come right in a year or two.

They must lower the cost of production. It was not as if they were making money—nobody was making money in coah shipbuilding, or textiles, yet though wages were scandalously low and profits were non-existent, wo were unable to compete successfully in the markets of the world.

You must lower wages or increase efficiency. I know no other way. I want to see English wages-higher; not lower.

Lower wages, too, were no permanent solution of the problem, as it still further reduced that power by lowering the wages of 80 per cent, of the populationi and so destroyed the Home market

The problem was how to secure high wages and low costs, and this could only be done by increased co-operation between all engaged in industry. All engaged in it must think of industry as national service.

The life of this country, declared Mr Rowntree. depends upon its industries: and, if these fail it, the country will fall and Raise the efficiency of business and it will make for the wellbeing of the world. But if we keep our eyes fixed just on our own welfare and our own interest we are travelling upon a road which will lead us very wide of the mark of true co-operation or true peace in industry.