40-HOUR WEEK

Hawke's Bay Herald-Tribune, Volume 81, Issue 35, 4 November 1937, Page 9

40-HOUR WEEK

-Presa Association.)

Mr. G. C. McCaul Reviews Effects POTENTIAL DANGERS

(By TelegrapB-

TIMARU, Last Night, "The past year has not been an easy one. The commercial community has had to face a spate of legislation initiated with the best of intentions but fraught with grave immediate and still graver potential dangers to the stability and prosperity of the industries, both primary and secondary, upon whieh the welfare of the people of this country depends," said Mr G. C. McCaul, in his presidential address at the annual meeting of the Associated Chambers of Commerce of New Zealand, which opened to-day at Timaru, Division of the Product of Industry. "Modern production is achieved by the combination of capital and laboux,,, said Mr McCaul. ' ' In the term labour I include both brain and hand workers. Capital is the product of the savings o'f those people who in time past consumed less than they produced and saved the balance. Possibly the iirst eapitalists in the world were those herdsmen who refrained from eating their female cattle in order that they might benefit by the increase. Next came the man svho restrained his appetite during the winter so that he might save grain to sow in the spring. The modern capitalist is the reservoir that seeds and irrigates the fields of industry. He is a blessing and should be regarded as such. "If capital absorbs a greater share of the product of industry than is desirable it is because it is not used with suffieient economy. Let me place before you a striking example of lack of economy and efficiency in the use of capital that definitely lowers the proportion of the product of indusfry that can be allotted to labour as compared with capital. New Zealand has recently introduced a 40-honr week for workers, without taking practical steps to ensure that the loss of production • by labour shall be compensated for by increased production on the part of . capital. Could there be greater folly? The value of the product o£ industry i3 all that these is to divide. If man ■ wishes to work shorter honrs, well and I good, providing he ordains that j machines shall work longer hours to make up for it. "In the six-day week there are 144 I hours. Man decides to work 40 hours.' The factory is idle for 104 hours. Fd?| 40 hours' wprk the man require* suffi-J , cient to snpport him for 144 hours plus I Sunday. The capital represented by. j factov/ buildings and maehinesy alsoj i vrorks only 40 hours and is paid for 144! hours plus Sunday. _ ! "Why not introduce a three-shift; system in all industries requiring a Ipif.9 iuvestment of capital for buildings and plant, then three times as, many men will draw wages as compared' | with every pound of capital than hereI to-f ore. I am convinced that only by the ' adoption of some such system cs.n labour reeeive a larger share of the product .of industry than now obtains." ,