The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY JUNE 16, 1926. THE COAL CRISIS.

Hokitika Guardian, 16 June 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY JUNE 16, 1926. THE COAL CRISIS.

Tub coal crisis at Home is still in a serious state. The Board ol Trade figures for May month show a decline in British trade of forty-eight millions. There was a debit drift prior to that period and at present the trade of the nation is no less than one hundred and eighteen millions to the had. [ These figures show a desperate loss in wages, a loss which it will not tie possible to make up. On financial grounds there can he no justification I for a strike which leads to such a serious disturbance of trade. The subject, however, has other aspects, apart from the immediate financial concern ' which is created by such a crisis. Pertaining to the production of coal in . Britain, the Commission found that over the last fifty years the production of coal per head of all persons engaged in mining has been declining. This fact lias an important economic hearing. The cause of tho decline is said to he chiefly due to the increasing difficulties ill working the deeper mines, and the shortening of the working day. The significant!? of the position is that as a cause, capital costs go up, and it is an increasing cost. Requiring moro money means a higher cost of the commodity and that has to be passed on to the consumer. But while that has lieen so in Britain there are places on the continent where the change has not been so marked, hut what has taken place is that the foreign commodity because; it is cheaper, has come moro and more into competition with British coal, and the market has been reduced for the Home article. The upshot has been bad for the coal ow ner and the coal miner. Last year the British Government met the situation with a subsidy, but the drain was twice what the estimated cost was, and as a consequence the burden couldnot he carried. With the loss of the subsidy came the strike. The result [ now- is that the disorganisation in trade rather general before the strike, is now much worse. Were a settlement to come at once, it would ho found that many British markets have been lost, perhaps never to he recovered. That means a permanent blow to British industry, and it falls first of all on the workers. To restore the normal conditions of trading, the Government at Home has shown every endeavour. Mr Baldwin lias offered a temporary subsidy to tide over the immediate future, but that generous offer on the part of the people lias been refused. The coal owners have to face a proposition whereby they can produce coal cheaper. Tt is more necessary than ever now. for they will hare to fight for the recovery of their markets lost for the time being at least, to foreign trade where longer hours and lower wages prevail. Apart from hours and wages, the Coal Coin mission has urged the reorganisation of the coal mines. Some of the pits may never open again because of the present cost of operating; them. It will be for scientific research, invention and improved methods with machinery, to

reduce costs. But cliief of all there must he the goodwill of the workers. The class of labor involved is exacting from every point of ivew, and the workers earn and deserve all they can get. It is obvious, .however, that more can not be taken out than is put in, and if the 1 tost per ton over-rides the price for tbs foreign article, the British workman • will' have so much less to do. While human effort is gradually being rewarded with higher pay, it is manifest the increase may not go on indefinitely. There is a limit, and when that limit is reached reduction or.reorganisation of the industry must he faced. That is the stage where the British coal mining interests are to-day. The Coal Commission bore out the owners’ statements that the industry was not paying its way. The British subsidy indented what the loss would be if the workers demands were to be conceded indefinitely. Having readied that impasse it is clear there must be a remodelling of the industry. Tire hearty co-operation of owner and worker is the first essential, and it is to be regretted that spirit lias not been manifested. The strike lias but added to the general confusion and inflicted losses which may never be made good. The time for commonsense action is long past, and it would indeed lie wise to see the stubborn attitude dropped, and those connected with the industry meeting the Prime Minister in a common desire, to see a reasonable settlement reached.