AMERICAN INDUSTRIES

Hokitika Guardian, 7 January 1926, Page 4

AMERICAN INDUSTRIES

A VALUABIJ3 (UA.'OU'L

Tlie report of the mission sent to America by the Federation of British Industries to investigate the industrial situation in America, was published just before the last mail left London. It is a remarkable survey, and shows a state of great prosperity existing, due largely to the high pitch of efficiency reached in production. • The mission was composed of Colonel Vernon Willey, president of the F. 8.1. and Mr G. H. Locoek, assistant director.

The report says the general trend of business in the United States is highly satisfactory, and there is no indication of any slackening in the volume of trade. “It is expected that the next year will see all records broken.” ■o cotton industry is distinctly on the up grade; woollens are not so active apart from the seasonal demand. In August an upward turn took place in the steel industry, which had been suffering from decreasing output from April to July.

Since 1900 the rise in the volume of production lias been general, hut it has been seen more particularly in manufactures and mining, and less in agriculture. To-day the position appears to he as follows: —Enormous plant developments have taken place during the last few years, partly as a result of the war. When the slump '•nine there was widespread over-capa-city, hut a remarkable recovery has been made towards maximum output. In 1921 the maximum possible output of all manufacturers was 71,000 million dollars, but the actual output was only 12,000 million dollars, or 57 per cent, of the maximum. In 1920, the latest year for which figures are available, the maximum possible output was 83,(XX) million dollars, and the actual output 00,000 million dollars, or 71.8 per cent, of the maximum. It is believed that since 1923 further progress has been made towards maximum output, and that probably the percentage is now over 75 per cent. Figures show that the era of intensive factory construction is over, as is evidenced by the proportion of industrial as compared with private building. While it is thus clear that the rate of increase of production capacity has diminished the present maximum capacity is enormous. and there is certainly 20 per cent., and possibly 25 tier cent., margin for expansion. FACTORY METHODS. Dealing with tiie state of efficiency in. the United States, the report says; -“Taking 100 as the index number for production, labour, and installed power in 1899, the following index numbers show the position at the end of the 1921 and 1923 period:

1921 1923 Installed primary power ... 310 330 Volume of production 200 285 Number of wage earners ... 150 190 “In other words, production has through increased efficiency increased much more rapidly than the number of wage earners employed. Again, taking the period 191-1-1923 for a given volume of production, the number of wage earners declined 23 per cent, and tin' power utilised by 12 per cent. These figures show clearly the increased utilisation of power resources, and are a> striking tribute to the efficiency of American production. If EASONS FOR EFFICIENCY. The Commission found that the reasons generallv accepted in the United States for this efficiency in production are: 1. The spread of education, both general and technical. I here is no doubt that the general level ol technical education to-day in the United States is extremely high, and ample facilities are available for anyone wishing to increase his efficiency by technical study. As showing the great increase in the spread ol higher education it is significant to note that there are now 509.009 I iiivorsity students, as compared with 200,00(1 students ten years a,go. 2. The labour situation. The salient points about the labour situation are: (a) Restriction of immigration. <b) High wages. •(■) Unrestricted output and the utilisation of labour-saving devices, (d) The satisfactory relations between employers and employed. The restriction of emigration is based on political and economic grounds. “The economic reason is based upon a firm determination to maintain the present high standard ol living in the United ’States, and is intimately connected with the question of high wages and unrestricted output. The American employer believes in high wages, and ho pays them. But he also believes in high output, and lie sees that lie gets it. In view of the shrinkage in the stream of immigration, and therefore more particularly in the pool of unskilled labour, it is becoming more and more important for labour-saving devices to ho used to the greatest possible extent. To this labour offers no opposition, and the result is a constantly increasing efficiency in production with a constant striving towards greater mechanical efficiency, and a emupa Hive freedom from the restrictions on output which hamper us in England. There is no doubt that on tlio whole the spirit of labour in the United States is excellent. THE LARGER UNIT.

“ In the United States co-operation between capital and labour seems possible. and the fatal doctrine that there is far more readiness in America than in (treat Britain for the different firms in one industry to co-operate for the mutual good, and even to go so far ns to pool a great deal of their technical and business experience. The American • convention lmbit ’ may be somewhat overdone and may appear to consume a great deal of time, hut there is no doubt that the habit of meeting together frequently and exchanging experiences has proved of the greatest value lo American industry.”