Untitled

Hokitika Guardian, 6 May 1921, Page 2

.Apropos of the intimacy between wages and production, the following reference to the cost of production in the Homeland is of interest, and has a moral no

less applicable to the industrial situation in this Dominion. Says a Chamber of Commerce journal published in London nearly in March :—Last Thursday the deputy-chairman of Barclays Bank, Sir Herbert Humbling, delivered an address at Ipswich on current problems, in which reference was made to newspaper .statements lately that production per worker is three times as great in the United Statas as in England. If this were true, ho asked, was there any real reason why our production should not be at least doubled? If it could be, wages could be increased and the burden of taxtion would be relieved, and he urged that a representative committee should be appointed to ascertain if our production was restricted by causes that could be avoided. The subject thus raised is a most important one, for it will probably be found that our future commercial prosperity will largely depend upon the extent to which we can increase output per man. There is reason for believing that the position in this respect has improved very greatly in the last year or so. At least two of the chairmen of our great banks at this year’s annual meetings stated positvely that there had been in recent months a very considerable increase in the average output of each worker. In confirmation of this a concrete instance may be given. Information was lately received from Bradford that the costs of production in the staple industry there uad been reduced by 50 per cent. This caused inquiries to be made on the ground that although the raw material had fallen very heavily the absence of any reduction in wages in that industry would appear to l>elie the accuracy of the statement. The explantion was that, although the rate of wages had not been altered there had been such an increase in the output per worker that the reduction in costs mentioned had become possible. There is strong reason for believing that such a satisfactory development is not peculiar to this particular industry, instances of a similar nature having been mentioned lately in other trades. If this improvement becomes more general it will be so impute nt that the scale of wages paid will be a less serious consideration than

is generally imagined, while the feature is especially satisfactory in showing a a more reasonable attitude on the part ' of labour;

The settlement of the reparation pnyi meat draws nearer. Necessarily so large a question cannot be settled oft hand, and with Gemanv naturally recalcitrant, negotiations are long drawn out. But Germany is bending to the pressure, and will continue to beqd rather than break. There are two causes for this capilalation. The first is the definite attitude of France; and % the second is the no less definite attitude of the United States. Of the world onlooking, the pro-Allies will feel most satisfaction in the latter cause. The United States lias acted very openly since Germany felt impelled’ to seek a way out of the impasse by trying to secure the good offices of America. doubt Germany was encouraged in that direction by the estimate formed of America’s unsettled policy in regard to the peace settlement. The speeches sent out indicated a somewhat anti-Al-lied feeling .and Germany seemed to build on that.. The official American replies clears up all doubt as to where America, stands, and she makes good the position, Germany having sought advice, to indicate plainly and clearly what German obligations are. This is an excellent result, and in some respects is well worth waiting for. The air will be the clearer. As before, Britain with the aid of Italy has been able to exercise a. restraining influence on France, and there seems the early probablit.v now of a peaceful and satisfactory adjustment of the reparations in the very near future. The revelations from internal Geniany point to the fact that the moneyed population are coming to a more proper frame of mind, and will soon take steps to help foot the bill. It will lie a gcxnl thine for Europe when this matter is adjusted on a definite basis. The present unsettlement is very disturbing to all the continental centres. There is the threat of and the phase of war and that should be avoided at all costs. That it will he avoided now, seems most probable, and it will he a great relief to Europe if it is so.