UNEMPLOYMENT IN BRITAIN

Hokitika Guardian, 23 May 1929, Page 2

UNEMPLOYMENT IN BRITAIN

A SCIENTIFIC PROGRAMME OF ATTACK. (By A. E. Tomlinson.) There can be no object in minimising the gravity of unemployment in Britain. It is to her credit that Britain has always acknowledged the problem in full, and has never attempted to falsify the facts or to evade the issue. This honesty lias given rise in certain quarters, perhaps not wholly disinterested, to ail impression that British industry is tottering along under an almost insupportable burden and is in fact on the verge of virtual extinction as far as progressive competition in the markets of the world is concerned.

Grave though the unemployment problem is wo can certainly afford ro laugh at distorted pictures of that sort’. The truth is that, in spite of unemployment, British industry rs employing 2,000,000 more workers than before the war when she was already the most highly industrialised country in the world. Moreover there are many industries like chemicals, art silk, motors, gramophones' and the wholesale and retail distributive trades, which are both prosperous and expanding. This is not to evade the fact that we have a million and a quarter workers of both who cannot at present find employment in their own trades. That fact in turn entails a heavy drag on the national resources and also retards that return To prosperity which alone can solve the problem in full. It has equally to he acknowledged that hitherto there lias been lacking a scientific basis of organised attack, absolutely unconnected with political party manoeuvres. No one hitherto has 'seemed’capable of grasping the problem in its entirety, with clarity and without prejudice, of analysing the facts, of dissecting the .causes, and of mobilising in full , array all potential remedies. This deficiency lias at last been met by a conference which, since its inauguration over a year ago, has aroused interest throughout the world the Conference on Industrial Reorganisation and. Industrial ..Relations, usually referred to as the MondT'urncr or Melcliott-Turnor Conference. Lord Melchett (Sir Alfred Mond) as bead of a representative group of employers and Mr Ben Turner, as (at that time) President of the Trades Union Congress, were the first Chairmen of this Conference, which has just produced a very notable document—the interim joint report on unemployment. It is perhaps natural that the Conference, dealing as it does with the whole scientific basis and organisation of modern industry, should also place on a thoroughly scientific, footing the question of unemployment. That,' indeed, rather than novelty, is the main virtue of its proposals: The mere issue of the report, however, has in itself a tremendous significance inasmuch as this is the first time that a representative body of employers and tho trade union leaders have met together, deliberated together, and reached agreed conclusions on the common enemy, unemployment. The proposals may he devided into two categories—firstly certain specific measures which can he put into immediate operation to alleviate the present heavy burden, and secondly more basic, remedies demanding more time for fruition, but aiming at, the very root causes of unemployment. The first cause of unemployment in Britain, according to the analysis of the report, is the ordinary trade cycle which, though still in depression, is already climbing above the lowest point of the trough. This state of wlmt might he called natural depression, lias, however, -been adversely affected 'by the monetary policy pursued in Britain since the war. A persistent policy of deflation, whatever its merits, has not helped industry to recover a high degree of prosperity. The second cause is a result of the Great War, and directly due to postwar conditions. World trade in general and European trade in particular were in a state of confusion and stringency from which tney are only now beginning to emerge. To many countries the main lesson of the war •was that they should render themselves even more intensely nationalistic and should render themselves therefore as fully independent as possible in regard to both manufactures and raw materials. Having erected their own producing units, and having feverishly developed their own industries, often on a noil-econo-mic basis, they have protected them with heavy tariffs against any possible corrosion from foreign imports. Markets already impoverished of purchasing power have thus been ever more firmly closed to British goods. Moreover the natural remedy for this, namely a re-fashioning and reorganising of British industrial methods, lias lieon rendered impossible by lack of finances coupled with heavy taxation. Nevertheless those British industries which have been able to “rationalise” are among the most prosperous in the country. The third cause is in a way contradictory, for this very rationalisation which is so essential to progressive prosperity, itself leads in the

first place to temporary unemployment and displacement of labour, so intensifying for a time the very problem it will ultimately cure. To these three main causes must be added the reduction in armed forces and in armament factories which has proceeded since the close ol the war, and also the prevalent drift of population from country to town. On the basis of this scientific analysis of causes, the report proc oils to an equally scientific exposition ol remedies. As lias been said its greai merit is that it IS scientific and o it spectacular. The immediate remedies, mainly palliative in nature, are seven in number.

First in order to provide the nncossary finance for depressed industries to modernise themselves nn'd reorganise on rational lines with tho latest scientific methods, plant and equipment, an extension of Government credit in the form of trade facilities is recommended. These trade facilities have been admin : stercd in the past oil too rigid and too conservative lines, and not with the object of rationalisation definitely in view.

Secondly the establishment of a development fund large enough to finauco important national scheme-,, should he considered. Thirdly a moro liberal allowance than the present Old Age Pensions should be given In order to allow the older workers to retire at 60, and so make way for younger, tbore vigorous workers at present unemployed. Fourthly, as a corollary 'Vo Vhe above, it is suggested that the school leaving age should be raised to 15. This, it is estimated, would remove about 500)900 juveniles from the labour market, their place being taken by about’2oo,ooo adults. The fifth remedy proposed - will he of greatest interest to Dominion and Colonial readers for it deals with the very big 'subject of emigration. There is, of course, no question of regarding emigration as the sole, or oven as the chief, remedy for unemployment. Nevertheless there is very direct connection between the present heavy incidence of unemployment and the slackening off in emigration in the post-war years. From the Empire viewpoint it must he emphasised that the British workman is the mo«H skilled and conscientious in the world, and till gt'cat majority'ol the present unemployed come, into that category. Thousands' H'No wish ’to‘‘make - good, and who'ban make good, :l ijj” more spacious parts of tho Ewifliro. thousands who in pre-war day?. r wjpy.l.d have been welcomed as settWrs, no\V find conditions , made more . difficult for them. 'Tile' report; 'therefort; makes several‘ proposals which will /convert these difficulties into genuine faciliohm.l ;«/ 1 > ties. . (i - ,~| ((r . _ As amounts allotted for emigration appear to have been utterly inadequate it is recommended that Britain should arrange its funds for emigration out of loan instead of revenue. The additional finance 'thus - available could best lie controlled by a strong committee of representatives .of industry under the 'chairmanship of - a Minister of State. , kSipiilaf;'.'.committees should be established in the Dominions. , , ,| | j.j . .

The suggestion that _ the British Government should ,buy )( ay.bjg tract ol land in Canada on a, system ol deferred p.aymcijt should'he ; given quo consideration-,, Arrangements . .for emigration, apd settlement) should be made not.,piecemeal but. .systematically and .scientifically oypy .a,| : pejriocl of years—faty: twenty. ycaf;s.

To put the whole matter on a satisfactory scientific basis arrangements should be made with Hie Dominion Governments and the Dominion Trade Union Movements to set up a Joint Committee for the whole British Commonwealth. This committee would have representatives of employers and of Trade Unions upon it, and would co-ordinate policies regarding the conditions of emigration and the employment of emigrants. Community emigration is strongly recommended in the interests both cf the settlers themselves and of the. country to which they emigrate, more stability and continuity thus being secured.

.Another important suggestion is that since the first two or three years of the settler’s work are the most precarious and likely to witness his financial failure, a scheme should he adopted for tiding him over this period. The possibility, of affording such help by giving the settler the capitalised value of his expectations undqir the (British State Insurance schemes is to he the subject of a special actuarial report by the Conference. Meanwhile it is well to examine, the whole question of an inter-con-nected scheme of Imperial insurance. It is felt that those who have contributed as workers to British State Insurance schemes have a. vested interest in the funds they have helped to create. The capitalisation of bis interest in those funds would not only help to tide the settler over his most difficult but would provide some addition to the financial and credit resources of his new country. Agriculture in the Dominions and industry in Britain would receive equal stimulus. The sixth in the list of remedies advocated in tho Report is the closer linking up of agriculture and the urban industries by menus of conferences. Eventually a standing Committee might, be formed on which the recognised bodies in industry, ae:riculturc and also organised labour should he represented. Seventh and last there are the special measures for the coal-mining areas with accelerated schemes of relief and transference. Such is lbe first line of attack cn

unemployment. Next we come to the slower-moving heavy artillery aiming at the root causes of unemployment. These almost suggest themselves from the masterly analysis of causes already outlined.

First there is the need for com 1 dote enquiry into the British monetary system and the operation of the' gold reserve in order that the special interests of ind stry may he safeguarded and furthered. Co-operation ••villi olhoir nations on the lines of the recommendations of the Genoa Conference of 1<)22 is urged. ✓ Second there is the need for a vigorous policy of the rational organisation of industries into larger units and the conscious planning of the dovrlo’ur'mt i f British industry a a whole on thi.roughly modern lira-. A strong recommendation is m .do that employers (in lonsuliation with the various Trade Unions) should o' or w together as to the host means of > hieing their industries on the most efficient. ;I nd most modern basis. Thirdly, inasmuch as this ration ills,,|,r>n will lead at first to greater unemployment, every care must he tahon to pit it into operation in such a manner that this first temporary effect is minimised, and the turn '-lag between the first displacement and the eventual recovery of industi . as a. whole on a. new efficient basis; is as short as possible. Fourthly, as a provision for rhe future,' it is r Nunn mended that all firms* and in some eases whole industries'should set 11 n a reserve fund out. of profits, for the p"rpose of assisting •displaced workers—such funds to ho invested outside the business and vested‘in• independent trustees. ’ ■ it home a programme of constructional works of permanent character should ;be implemented.- whilst ,in ;order- to develop • overseas trade, the svstem.of export credits should he extended. Finally by the formation of ai Crown Cobnies Development Committee, administered on tlu> samelines as trade facilities, schemes of development in tho Crown Colonies could he undertaken. ‘Such is the most complete and scientific plan of campaign yet evolved against unemployment in Britain. That plan may not sound very grandiose, the strategy not very spectacular, but at least it is orderly, scientific, and devoid of camouflage and impossible promises. ■ • ;Tlvis yeyiew can not be hotter Hosed (than !by a quotation from the report itself; which says . :“'!'|iking. into account the difficult times through which Britain has had to ptiss. during the last ten years, a tribute , should be paid to the cour--1 age and tenacity which, in nian> i cases! has hqen shown by those responsible for the conduct of B itis’n industry, Thq picture has been a depressing one, but as a result' of th ' efforts of- those who have exhibited, that'courage and tenacity, it is felt that if the immediate position can he aided and those fundamental causes of unemployment which arc indicated later can be eradicated, the future of British industry is one of progress, prosperity and development. ’