INDUSTRIAL PEACE.

Manawatu Herald, Volume XLVIII, Issue 2982, 5 January 1926, Page 2

INDUSTRIAL PEACE.

Writing of the possibilities of industrial peace in Britan the Spectator says:—“American employers and employees grow rich together, because both sides accept the capitalistic system with good will. High wages, ample leisure and a huge output all co-exist. Enlightened thinkers of every school of British political thought say exactly the same thing about industry, namely, that high wages cannot possibly be paid on a small output, but if output can be increased to a point which is attainable wages instead of being reduced can be considerably increased. The figures showing what has been done in America, where there is virtually no restriction, are simply overwhelming. Between 1914 and 1923, owing to la-bour-saving machinery, the number of workers required to turn out a given volume of goods was reduced by 23 per cent., and the mechanical power required for the same volume was reduced bv 12 per cent. The average Labour economist in Britain on reading such figures would throw up his hands in horror and say that it meant throwing such and such a number of men out of work. In America, however, quite the contrary has happened. The money saved has been put back into business and more labour than ever has been employed with still higher wages. Then there is the other example set by America of encouraging the employees to invest in industrial companies on very favourable terms. The Standard Oil Company lets every worker invest one-fifth of his wages in the company, and it adds half a dollar to every dollar thus invested. Why should a workman want to strike against such a company? Of course, he does not. He is a capitalist, himself, and he wants to work with more and more enthusiasm as his stake in the company mounts up in order that his profits may be increased. The company, on its side, can otford to be generous, for it is secure against strilc-