WELLINGTON NEWS

Hokitika Guardian, 24 April 1929, Page 2

WELLINGTON NEWS

falling prices AND UNEM-

PLOYMENT.

(Special Correspondent.)

WELLINGTON, April 22

Aocortling to economists, and especially Mr Gustave Cassell, the eminent Swedish economist, the world has entered upon an era of falling prices. Gold supplies, the supply of credit and other matters are involved, hut that to the lay mind is boredom. When the economists speak of falling prices they imply that over a long period the general tendency will be for commodity prices to recede. There will, of course, be fluctuations in respect to every commodity and the falling tendency will not be coincident, that is all commodities will not show a downward tendency simultaneously. If prices decline as predicted then it must be because purchasing power on the part of consumers has contracted. This is fully realised in Europe where every effort is being made by the enlistment of every scientific method to reduce costs by increasing production, and so we have rationalisation, amalgamation, cartels, combines, and mass production.

Jn Britain these methods have been extensively employed with very good results, and many of the leaders in industry are beginning to observe improvement in trade. In all this the co-operation of the employees is sought and encouraged to the fullest extent. Union leaders realise the importance of this new movement. Mr Citrine, General Secretary of the Trade Union Congress, says that the future policy of the unions must be to actively participate in a concerted effort to raise industry to its highest efficiency by developing the most scientific methods of production, eliminating waste and harmful restrictions, removing causes of frictionand avoidable conflict and promoting the largest possible output so as to promote a rising standard of life and continuously improving conditions of employment.

Idle bulletin prepared by the Department of Economics, Canterbury College, and issued by the Canterbury Chamber of Commerce, deals with industrial relations, and it is pointed out therein that tjie chief difficulties of industry to-day are due largely to a decline of prices which has necessitated a reduction of costs, to changes in demand and markets, to which production must be adjusted, and to increased international competition. Both employer and employee want better conditions and more . security here and now, and it is claimed that both can have them if tjjey will agree as to method, but they must first agree as to fundamentals.

Great gains are possible from in the product which might readily be achieved, for the standard of life of a community is absolutely conditioned by the standard of output. 'Some trade unionists of the Communist type opciency with the avowed object of haspose every improvement in capital effitening the breakdown of capitalism. Then there is another section of unionists, the aristocrats of the unions, men who style themselves labour leaders and members of the Parliamentary Party, who prefer to organise solely for defence, oppose change and refuse to give up any point already won.

This is declared to be the method at' stagnation and offers at best no hope for improvement. Unless Labour bends and yields a little and actively participates in a concerted effort to raise industry to its higher efficiency by developing scientific methods of production and eliminate waste, in short until Labour gives tangible proof of a desire to co-operate the present stagnation in trade and industry will continue.

The bulletin points out that in older countries the changes that have occurred recently have been effected with very ljeneficial results. Here, it is pointed out, that the parties in industry have been bound too closely to the State machinery provided for negotiation. That machinery inevitably means over centralisation and decentralisation is urgently needed. By its Dominionwide regulations of the minutest details of industrial relations it had standardised and stereotyped industrial 'organisations where the greatest flexibility and freedom are needed to meet the varied and changing conditions of production. It may be necessary in certain occupations to afford some measure of protection, hut that protection could well be furnished over the whole of the industry by providing for minimum wages, maximum hours, and protection of health and safety. What is proposed appears to be a revision of the functions of the Arbitration Court which has been long overdue, but that does not solve the problem of reducing costs of production and that is what is urgently needed at the present time.