The Guardian (And Evening Star, with which is incorporated the West Coast Times.) FRIDAY, SEPT. 28th., 1923. GOVERNMENT IN INDUSTRY.

Hokitika Guardian, 28 September 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) FRIDAY, SEPT. 28th., 1923. GOVERNMENT IN INDUSTRY.

Pursuing further the remarks on this subject mentioned in a previous issue, it is worthy of note that in Italy, the government, headed by Mussolini, himself the editor of a Socialist paper before the War, has transferred the public telephone system to a private company for operation, on the ground that the management will be more economical and efficient in private hands. Premier Mussolini summed up his conclusions upon this subject in an address made at the opening of the recent meeting of the International Chamber cf Coihmerce at Rome. He said in part: ‘Tt is my conviction that a Government which wants clearly to uplift its own people from the after-war crisis must give free play to private enterprise and forego any measure of State control or State paternalism, which muv perhaps satisfy tho demagogy of the Left-, but, as shown by experience, will, in the long run, turn out to lie absolutely fatal both to the interest and to the economic development »>t the countrv. The time has tome when we must take off the shoulders of the producing forces of the nations tile last remainders of what was called war harness” and examine the various economic problems with feelings undisturbed by those passions with which it was necessary to consider them during tiio war. I do not lieliova that, that coni-

flex of. forces which in industry, agriculture, commerce, banking and transport, may lie called by the glorious name of "capitalism,'.’ is about to end, as for a length of time it was thought it would by several thinkers of the social extremism. One of the greatest historical experiences which has unfolded itself under our own eyes has clearly demonstrated that all systems of associated economy which avoid free initiative and individual impulse fail mare or less piteously in a short lapse of time.” It is reported that plans are ooing matured for placing the gov-ernment-owned tnilroads of Italy under private management, to save the treasury from the heavy deficit which seems to be unavoidable under government operation. In Rumania, owing to complaints about the high cdM of food, a government edict was issued last Ft’bruai’v. prohibiting the export of cattle, but it lias been recently modified to an export tax of 10,000 leu (about £11) ]er head. Kpou this subject, and the experience of that country in price-lixing, M. Clarafild, a former Minister of Agriculture of that country. lia.s been quoted as saying: ■‘Export prohibition and the fixing of prices below real values brought about a decided falling off of production, cspcciallv in wheat and bits, with the inevitable consequence. enforced by the law of supply and demand, of an exorbitant rise in prices. Another cause of the high cost of living is the depreciation of the value ol the leu abroad. At present this gold value of the leu is 2J S"iss centimes. It is easily understood that when we. have to pay gold values for agricultural implements and machinery ordered from abroad, producers naturally endeavour to raise their prices to the world parity, and this tendency cannot he counteracted either by price-fixing or usurv laws.” The e general examples disclose the trouble and difficulty there is of dealing artificially with Lading conditions, which inevitably are controlled by the stern laws of supply and demand.