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Hokitika Guardian, 2 January 1920, Page 2

Naturally the subject of the cost of living- occupies a prominent position in public and press criticism all over the world. In Britain the situation is very acute and an English commercial journjal reviewing the actual position at Home in October last goes on to say that at that tme the general level of retail prices of good, rent, clothing; lio-hfc etc., coming under the

composite expression of the “cost of living,” was about 120 pe" cent above the pre-war level and 5 per cent more than at the beginning of September last. The figure is now higher than for eight months past, and is, in fact, almost as high as it was just before the Armistice. Un-

i fortunately there seems but little pros- ' pect of any immediate reduction in the figure; indeed, looking at the anticipated increases in railway charges, rates and taxes, gas and electricity, rents and wages generally, a further rise is more than probable. The inevitable outcome will be still more demands for increased wages. On the face of it, one scarcely isay that such deman Js are unreasonable, In order to work, men must liye, and to live means ability to feed, clothe, and lodge themselvps and their families. If the cost of these elementary necessaries rises abnormally then it is obvious that earnings, too, must rise. What is, however, not so generally recognised is that, in turn, increased wages are themselves directly responsible for increased prices, for labour, generally speaking forms a very large part of the cost of commodities. Consequently, increased wages are followed by increased prices as inevitable ns night follows flay. —, . . ..1 enpms honeless.

But is it us hopeless as it looks, Not if labour will realise the vital necessity of increasing our productive enpacity for peace as it did for war, (> improve the standard of living at home it is necessary to produce more goods of every kind for the common use- The greater the productivity of the workers, the greater the possibility of lower prices of commodiltiies. High wages are valueless unless goods can be purchased with them. This is well illustrated by the situation in Russia to-, day. There is plenty of so-called money there, hut no goods, and the result is that the people are practically starving for fpod and without the pecesspcs of life. Further, the whole world vs waiting for goods we ought now to bp pro-dm-ipg for export. Greater export tpode w.pnld itself largely PD r f s ip jthis coupiry py encouraging F,e inflow ffi food apd ypw inatprfa/s and lowering freight?. To speed W production is the only sjjrp method ol reducing prices, which cannot bp bj'PUghfc down by Acts of Parliament or by i (i ,r resolutions. Nor does it rest entirely with labour, important as manpower will always be, must be speeded up, morp and cheaper motiye power supplied, better and relative.y cheaper—instead of d.earpr—secured, and obsolete industrial methods brought up to date, while more nlf.e'i-

| 10 |! llljgm I'M! w • • . schemes of prolitsha,u»g successfully introduced in various directions. Copartnership naturally involves a share jn the responsibility and some degree, at any rate of control. Is it too much to expect that the more enlightened workers, if given a share in tho profits, would Vise -to p higher sense ol responsibility and gain a fuller knowledge of 'the difficullics with Which manufacturers ami producers have to contend. There would thou be every prospect, in questions at issue between capital and labour, of #• fjldilpmowL ,U)t **' rcc 1 action” or by lightning strikes, or lockouts, but in a spirit of give and fake for tho benefit of employers and employed alike and of commerce and industry as a whole. Above all, the pec-essity is industrial peace. Every Strike means I£SS production, reduced wealth, a poorer stajulajul pf living aiul a. serious hjpdrapce to the reconstruction of trade and industry. A|l—em r ployers and employed —must W°i k toacthor for the national good iii $ selfless “spirit of comradeship” as in fh,e ypfips of war, bearing in jnind that intensified production is the only remedy for the present- situation If* w)ijpb the country finds itself. Once again an appeal is made fn those who have the ear of the people to emphasise fhat, ejomentarv economic principle that 11101 e cannot be taken out of industry than is put into it, and that increased production, combined with national and individual economy,' is the one and only solution of the grave problems arising out of the recon-Si nf.e/'i 0 n of our indusnml cnronl lifn