Economic Law and its Part in History

Hokitika Guardian, 7 May 1921, Page 4

Economic Law and its Part in History

By Charles Francis. 1 Mr Charles Francis, the Dean of c American Printers, who is tour- i ing the world as Commissioner of i the United States Government i to inquire into industrial condi- ' tions in countries he visits, and who reached Australia at the begin ning of February, has written this article specially for “Wimbles Reminder.” ' When the Civil War took place in he United States, prices of labor and iil commodities soared to a height equivalent to or above those which occurred luring the recent greatest of all ways. Fhe balance was not reached until ten •ears after the Civil War took place, ind then only by the economic reaction vhicli will necessarily take place during lie future years. The economic law vill make the adjustment to correspond vith the natural order of things. This oust follow, for the social system is essentially co-operative, in its nature, md therefore, it is a supremo fact that die natural tendency will be to establish an equilibrium. The real question before the world to-day is “How to establish this equilibrium in the diortest possible space of time?” Everything in the economic world is dependent upon mutual service and obligations, and notwithstanding the strikes and disturbances at present existing ,tlie time must como when this round of rise in wages and all expenses will descend Hot perhaps in the short lime it took io rise, but because of economies that will liave to he practised by the working man and others who form what is Known as the common public— and we are all part of that public. It will soon bo seen that rises in wages, rents, salaries, etc., is not the proper manner in which to establish an equitable basis, hut that it is meielv going round anil round in a ciicle jnnd reaching nowhere. It follows, (therefore, that if any group in the community, holding by reason of its services a strategic position, attempts to impose its will arbitrarily upon the people, it commits an unfair, unjust and unsocial act. THE REAL AIM OF DEMOCRACY Wo must raise and establish the rights of people as a whole and protect the individual rights where they harmonise and promote the interests of the community.

Tjic present aim of industrial democracy seems to he a division of existing wealth, which is the aim of Russian Bolshevism. The real aim of industrial democracy should ho to enhance productiveness, and thereby open a nay by "which prices will return to normal, leaving a much better condition than lias ever existed previously. The question of industrial organisation is in its very nature, changeable, and is liable to lead to sad results unless there can be co-operation in re-

arranging these conditions. Industrial ylemocracv is coming to tin* Iront and a. re-ndjustmont, caused by the advance of machinery in doing away with hand labor, will give the increased product necessary to a. re-division of the accumulation of the wealth of every individual without the supreme effort heretofore exerted'. There must always he a wage system because of its simplicity, hut there may be a plan evolved which will more equitably divide profits- where there are any. The wage earner is one of the most-potent factors in making this profit. The relations of labor to capital and capital to labor are of the same nature, and both are necessary the one to the other. It is therefore, not the right principle for either to condemn the other, hut to work together for the best results obtaifmble by co-operation. The facilites afforded the wage earner as well as the capitalist to join bands lis been found in the joint stock corporations, which give abundant opportunity for co-operation. .And there is only one way' in which we can bring about a equality so earnestly desired bv tli.i' worker, and that is to recognise the rights of both and work to accomplish successful results. 'Phese results will also depend upon management to a, material extent. PROPER USE OF CAPITAL. '

The truth is there is a normal balance between the compensation of capital and the compensation of labor, fixe; in the economic law. and there must be an accumulation of new capital dways available for investment in order to keep the industries of the country up to the wants of the population. If this is not tbe ease, production will be minimised, prices will rise and wages will lose in purchasing powar The proper use of capital in the invention and use of new machinery will enhance the power of production an 1 thereby add, as it has done, to a con stantly stronger position for labor which must necessarily be skilled labor

Everywhere is the evidence tint the universe is governed by law. Notwithstanding all the disturbances of nature and all the uncertainties and hardships of life, there is order and purpose n beneficent law. That nac'on or country whose people recognise these facts, and that progress is not made by strife, but by efficiency, will rise *o the foremost rank in the development and contentment of the people and will set a world record, which will do more to destroy the despotism of Bolshevism than we can possible foresee or imagine. Portions of the above sentiments and actions are probably in effect in dif • forent parts of the world. In the united States of America, we have In d collective bargaining and agreem mis with the conservative laror unions nr 1 many years in some industries, together I with consultation, conciliation and final arbitration of all labor troubles: bul war came, and by unbalancing economics disturbed these conditions and more and more have the industries organised to enforce 'he “closed shop” idea, and the bargaining era. This will not. be successful unless it can he done co-operatively, taking into consideration the “human element” on both sides. Any prolonged enforce ment of rigid and unbearable rules l;v either labor or capital will again /reduce confusion. TO CURB CONTENTION.

Recently there has been formed in the United States in the printing in dustry what is termed “Joint Conference Council” which is formed by the m-

ployers an 4 employees national organisation representatives and is based upon equalisng or stabilising Wages and standardising “shop rules and practices” and while it has developed some opposition, without doubt >t will be a means of co-operation not heretofore in existence and will tend to curl) foolish and uncalled for contention and consequent loss to the community. The true interests of the world call for the broad doctrines that are in harmony rather than conflict. That .11 nations and all classes prosper or suffer together is the doctrine of the Economic Law, and therefore, the interests of each group is served best by that policy whtich protects the interests of ah-