The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 14. 1926.

Hokitika Guardian, 14 August 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 14. 1926.

A REJUVENATION'. That Great Britain is going through a most extraordinary period of economic transition is quite certain, and it is equally certain that there is nothing apt to he more misunderstood says a South American commercial journal, than transition under any circumstances. The fact that the whys and the wherefores of the minor processes in the scheme of transition are only vaguely understood by the people participating therein .might, at a pinch, be taken as

sin excuse for really serious- misunder--5 standings on the part of peoples whose role is that of casual spectators. Take, for instance, the British mining industry. The British miner places the responsibility for anything unsatisfactory there may bo about his earnings upon the mine- owners. The mine owners, though naturally making a very comprehensive study of the economics of the industry, nevertheless consider the unprofitable working of the properties as the nearest result of the high cost of production in terms of wages. Broadly considered, however, the position is that both owners and miners' are jointly the victims of circumstances (|uite outside their power of control. The great and growing competition of alternative forms of. power production has, to begin witli, rendered the general decline in the coal export trade practically inevitable. Had the world’s dependence upon British coal been greater than it is, the price would have l>eeu greater also and the mine own-

I crs would, without any sacrifice, hav< been able to share the difference wit] the men. But, as already stated, al ternative forms of power produetior must be reckoned with. For instance water power is being used as a substitute for coal to an extent which is not generally realised. Throughout tht world, over 35 million h.p. from water is in operation, the significance of this fact being more readily comprehensible when it is added that the whole of Great Britain’s industries could be operated on ten million h.p. Water power developed in Europe rose from 8,877,000 h.p. in 1021 to, 12,300,000 h.p. at the end of 1923. Another obvious factor in the situation of the British mining industry is the diminishing accessibility of tlie coal in many of the mines. As sources of export coal production. many of the old mines are, in other words, nearly played out. Wages, output per man and world prices conflict in such a way. in the case of these old mines, that their operation is not a sound economic proposition where the existence of the enterprise is contingent upon the sale of the coal for export.