PROBLEMS AHEAD

New Zealand Times, Volume XLIV, Issue 10293, 30 May 1919, Page 7

PROBLEMS AHEAD

THE WAR ITS SEVERAL ASPECTS CONSIDERED. EFFECT ON TRADE AND COMMERCE. In his presidential address at the fifty-fifth annual 'meeting of the "Wellington Chamber of Commerce yesterday, Mr J. Gr. Harkness delivered a comprehensive address in relation to tho present position of matters regarding the war, so far as New Zealand is concerned. In the course of his remarks he said:

It is a source of gratification that we meet to-day in some respects under more favourable circumstances than twelve months ago. Tho great struggle which the Empire, ' together with our gallant and loyal Allies, have been engaged in for over four years has passed awav. We rejoice because the grim toigedy of this war has ceased. At its commencement we may have flattered ourselves that barbarism had been banished from amongst civilised! nations. Ordinary warlare, even on an immense scale, irf modern times is understandable, but the bestial methods practiced by our enemies has paralysed. our conceptions of war and filled the civilised world with horror and amazement. Great as the difficulties may have been in combating the principle that barbarism and brute strength should triumph, over right and justice, there are yet, even when war has ceased, new entanglements to face and greater problems to solve than those during the war. So far, a glorious victory has been gained; it will, however, devolve on the Peace Conference and the result of its deliberations as to whether those difficulties will eventually be overcome. Our statesmen are today face to face with the greatest Problems of modern times,'which will demand clear vision; strong foresight and bold,. courageous action to satisfy all interests and detae principles which shall free the world from the scourge of war. IV e can assist by the exercise of patience, true courage and firm trust in those who have led us through the hell ot war, believing they will guide our nation and the world to a peace that shall last and bring increased prosperity and happiness to the human race. To-day we stand too close to past events to succeed in mastering the significance of the war, either in its effect upon the nation or our opponents. It will take a generation to do this. .Mr il?y° George remarked in one of his Guildhall speeches: "It will take years, generations, centuries, to develop the greatness of the hour we are passing through." These are true words. If the first table of value of exports and imports for the last sis years -is compared with that of quantities tho distinct feature, of the former will appear at first sieht, that the balance of trado is stronglv in favour of the JJominion. A reference to the latter indicates that, unfortunately, whilst in value there is an excess of exports ana imports, the increase is more imaginary than real. The value of goods exported is not of quantity, but rather of ttie hieh prices realised for our primary commodities. This is further discounted by the practice of assessing the exports at their full value f.o.b. and limiting the price- of exports to a 10 per cent advance on invoice cost. In view of nign ' ocean freights ruling during 1918. it taken into account would matenallv advance the total sum on imports. -Had, however, transport facilities been better, there is no doubt the margin of difference would have been more marked, especially if the heavv stocks, of wool, meat and dairv produce could have been shipped. Our safetv in the future lies not in high prices, but m an increased ontput of the Dominion prodnots. Whilst on this subiect it xs well to note the increase duTine the last two years in the Dominion's flocks and herds. Cattle now number 2.869.465 head, an increase of 451.974 in .two rears.- Sheep total 26.558.302. an increase of 1,750.152. This is a distinct advance towards future development in the export trnfle, PRESENT PBOSPECTS.

Tib year has been pregnant with, innumerable difficulties and increasing anxiety. Commercially the path of tne business man has not been strewn with roses. As the war progressed, the ira possibility of obtaining necessary supplies to carry on, the uncertainty attaching to the delivery of such purohases it made, the abnormal value to which goods advanced, and the constant fear of meeting a falling market with heavy stocks have been and still are a constant source of disauietude. However, the Dominion has prospered during the war, due principally to the purchase by the Imperial Government of nearly all our exportable productions, and the receiving of progress payments thereon prior to shipment. The total value of such , to April 30th, 1919. aggregated £101,832,352. During the time these contracts remain in force, the future, financially, is assured. Afterwards we may reap the aftermath of war. A reduction in prices, consequent on the readjustment of foreign trade and the hardening of the money market, which is almost inevitable on the removal of the present Government restrictions, will have to be faced. Takine into account the reduced Dominion income arising from the sale ot exports.lthe heavy burden of taxation to bo borne, the only hope to maintain continued prosperity is to redouble our efforts' on increased production and practise by all sections of the community both public and private, strict economy and thrift. Every thoughtful and prudent man -will anticipate and make provision for the changes that must develop when normal conditions again prevail. PBODUCTION.

Immediately associated with the subject of the immediate future, it is opportune and important -to etreßs again the vital necessity of increased production if the nation is to be saved irom serious financial difficulties. Ihe matter has been referred to publicly by Ministers of the Crown, and men in responsible positions have spoken on tha subject, but no steps of a practical nature have been initiated to give oilect to the proposal. To talk, about it. is insufficient to bring about the desired result. If left to the individual it becomes nobody's duty or responsibility. It needs to bo a national movomeut, founded on a national sentiment, that every producer, every worker, must be iMduced to xeaiise that the nation's welfare depends on each and all doing in their special calling the best he or she can do. Naturally some may say, why is more production required f Can it not be left to private enterprise t The reason is plain. In 1914 our National Debt was .£99,731,000; in 1818 it had reached .£166,164,885, an increase of -£66,433,000. This sum involves the I providing of at least j 5,654,000 additional annually by way of interest and sinking fund, calculating the charges at 44 per cent, and 1 per cent. Probably 75 per cent, of the former sum is reproductive. The increase m the last five years is solely due to war expenditure. Directly! non-productive indirectly advantages may be gamed. Prnotlcallv it is lost. It is probable that this war expenditure will bo further added to by the financial assistance granted under ' the repatriation and the land proposals for the returned soldiers. The money utilised for such purposes will be'partially reproductive. A huge dobt has yet to be repaid and interest found annually. No sane man or patriot regrets tho loss and the attendant sacrifice. Now a nation dae« pat live

on its accumulated wealth, neither does it exist on the accumulations of posterity, but solely on what it produces from day to day and month to month. This principle is the very foundation of our existence. If then a certain production in 1914 enabled ustto meet the Dominion's financial obligations, what are wa doing now, if our output remains about normal and values tiro reduced considerably in the near future, to pay nearly double the amount? Gentlemen, thero is a crisis approaching in the history of the Dominion. Have we the courage and determination to face the facts? At a critical period of the late war if. was thought that the submarine warfare might cut off ocean-borne food supplies to England. What action was taken? The Lloyd George-Bonar LawImperial Government took hold of a practical man, Mr Prothero, a noted politician, placed him in charge of the Board of Agriculture, with a tree hand and these instructions: "Increase the food supply of the United Kingdom. * in twelve months they rose from 50 per cent, to 75 per cent, ia output. We need the same movement hero and now. It is absolutely essential that four bales of wool are produced whero only threo are now, and so with meat, dairy produce, and every industry. It would, pay the Dominion to hand over to competent men the unoccupied areas, the waste lands of this country, for a term, cf years at a nominal rent, or even without rent provided in a given tame they added to the wealth of the nation. It would pay handsomely. It may be urged that the settlement of returned soldiers on the land Trill assist production materially. -No great returns from that source can .be forthcoming lor some time. What is needed most of all is increased production, not only from the soil, but from all the. industries and mines. It is those who are now settled m the business from whom the necessary help must come. Not only must the soil increase its productivity at a greater ratio than heretofore, so must tfto manufacturing industries and their quota, and. last, but not least, tne coal mines of the Dominion must put out ample supplies for local requirements and sufficient to meet the demands or ocean and intercolonial . trading steamers. Restricted output injurious to all concerned. It alarms capital and reacts on labour by reducing wages, increased productivity brought about by all sections Is the only potent factor, to coin a pnrase, which will stabilise the finances of the Dominion. FTJTTJRE TRADE AND COMMERCE. In reference to the trade of Wellington and the district it sefves; a reference to the exDOrt, import, Customs revenue, and tonnage statistics for the last-nine vears, covering the triennial periods of the three former, and 1915 to 1917 of the latter, shows that Wellington still maintains a foremost position in the trade and commerce of the Dominion. Its "eographical pf'Mon as a safe and workable port Is < : undoubted value, end should not be overlooked. It ought to be the distributing centre for mwaro,; goods on account of a large portion oi the Dominion. ,-. • .The opening of the Panama Canai, and in the near future the great developments of overseas shipping by this route must be of incalculable; benefit an(£ catered for. Not only should it become the first port of call and generally, the last of denai-ture for all steamship'companies trading direct with the Dominion, but also being in a direct line from Panama with the main ports of the Commonwealth on the Eastern side, a.I-ort of call either on the inward or outward voyage for coaling. That these advantages should not be lost, it is necessary that the Wellington Harbour Board should at the earliest possible moment bring the port up to date in modern equipment. Ample accommodation shouio be . provided., for,, berthing « steamers greater tonnage and' increased draught; modern machinery for handling goods inwards and outwards; and above all ample provision for dealing with coal required for steaming purposes. Lastly the storage and holding capacity of wharf sheds should be built equal to all requirements. USEFULNESS OF THE CHAMBER. It has been mentioned by some "That the chamber's day of usefulness has passed, it has become effete, and no good; is accomplished by. its efforts." That a direct charge which in regard to our nw self-respect must be challenged. If the imputation implies that the members oi the council are wanting in mental calibre and that no results follow their administration, the answer lies in a nutshell. There are twelve vacant seats on the board; elect someone else to the position. This is not referred to in a spirit oi antagonism, quite the contrary. Your oriticism is courted, it will do good, but let it be in the direction of "construction not destruction."- The council ask foi your support, your loyalty, and hearty co-operation. Are we to seek this in vain? If eo, then undoubtedly the work and efforts of the best will be futile. A so'mewhat caustic Wellington politician, said- "Chambers of Commerce were political debating societies.." This caricature was unfair and untrue. Members ot debating clubs frequently do not understand the subjects they discuss, nevertheless they talk. On tho other hand, commercial men do understand the questions that come before them but will not talk. Therein lies the difference. 'Undoubtedly thero is in existence today manv individual associations tnat had no being twelve or fifteen years ago. Thov are the results of the changed conditions of modern times, combinations for muETi.al support and guidance. Apart from their own interests there are.vital questions common to all that la™**?! settled by a supremo body. Tn« js the prerogative of chambers of commerce the world over. To adequately improve the influence and usefulness of the chamber, representatives of these various organisations are members of your couuoil. The new order has proved .ot distinct advantage to the council.. Again, our able secretary. Mr Vickery, is energetic, competent and his services are always at the disposal of members who require help. An endeavour will lie now mado to prove that the chamber is not wanting oithor in power to grapple with complex questions Or direct, in matters of interest to the commercial life of Wellington. OF TRADE. Your council have given serious consideration to the future basis of trade with neutral countries, our Allies and enemv countries. There is a strong oonsensus of opinion that every offort oiiould bo made to encourage trade within the Empire. If. with tho knowledge and experience gained during the last five years, some proposal acceptable to all conoerned can bo evolved, it will assist materially in re-establishing the Lmpiro in that foremost position in oommoroial enterprise that was occupied in pre-war days. Many cherished convictions have been shattered as a result of war lessons. Even in the United Kingdom it is now recognised that it Is vital to the nation's future success, that drastic* amendments should be manv economic arrangements. lariJE reform is the onlv effective weapon that can deal with the recurrence of Gorman commercial "penetration." Further it is acknowledffori that some form or preference is desirable ns between the United Kingdom and the Dominions across the aeas. However that is a question tho Mother Country must decide. The Dominions cannot and should not dictate the terms. Already the principle is nccnowlcdged in our tariff and this in tho practical proof of sincerity. Briefly put, tho Dominion stands for preferential reciprocal trading relations. preferential trtatment to our Allies and tariff restrictions against enemy countries. It is well to affirm such principles, but to become effective they need loyal and gonerons adherence from persons and firms engaged in commercial transactions. Such a policy, honestly ndmintntered, will make for the unitv of the Empire and consolidate its enormous and valuable rosouroeß.

KECONSTRUCTTON-REPATKIA. TION.

Much has boen uttered in connection with reconstruction and post-war problems In this country which is beside the Question. There is practically not much reauired that needs to be reformed. New Zealand is not so ancient as to be fettered by past traditions or precedents which are tho bane of the older European civilisations. Thanks to those statesmen who guided the destiny of this country during its earlier history, pro: vision was made to avoid those pitfalls wnich hampered other countries. Li Sural measures wero devised which prevent ed the development of those evils, which many nations, having gairiod a fuller experience during the last four years, will need to remove. All that requires to bo done hero is to take the fullest advantage of the privileges and opportunities open to all and make the best possible use of such in the interests of the com munity. Probably the greatest work oi achievement is to get back into civilian life those who have served at the front at the earliest possible moment and into such positions as will, conduce to their own benefit, a nd further the best interests of the nation. Tho National Gov ornment have taken authority to glvo effect to such proposals. .... In regard to the "Repatriation Scheme," its apparent weakness is tl e inclusion of four Ministers of Hie Crown. It may be more imaginary than ■real, but it possesses within itself the tendency to divide authority and responsibility. This cannot be in the interests of those intended to be assisted. Whilst, one must sneak with all. diffidence cf those who constitute tho various boards throughout the Dominion, tho method of administration may prove expensive, and could well have been undertaken by voluntary patriotic workers, who have already done'yeoman service on behalf of our soldiers. As to the settlement of soldiers en areas of good lands this should have the hearty support of all. Every soldier v-ho desires to follow the occupation incidental to a country life should be encouraged to do so. The conditions of occupation should be made as easy as possible compatible with insuring the success of the intending settler and the of the Government as to its advances. Further, whatever the conditions may le, they should be administered with the utmost elasticity. The occupant should be treated as a man, not as a machine. The most liberal terms may bo given and accepted, yet there will be failures. There are, however, certain characteristics a man must possess-to become a successful farmer. These are an appreciation of outdoor life, an attachment to the environments of farming life, together with its enforced isolation; no opposition either mental or physical to- hard work and occasional ) drudgery; in other words, labour, constant and persistent must be a pleasure. Lastly, love of eni-" mals. Without these factors no man can become a successful farmer, with the simple reason that the best cannot bo Better results would have been obtained in settlement had the »elction of the lands required in certain districts been left in the hands of practical men, residents therein, who knew its value and possibilities better than departmental officers.-. TAXATION. Under this headiue reference may : be made to war loans, land taiation, and income. There are several aspects of this question which have been discussed by the council during the war period In considering the problems investigated, an honest attempt was made to avoid partisanship and deal with the issues on their respective merits. WAR LOANS. . .The raising of from forty to fifty millions locallv has met with considerable adverse critioisiu. This-i bjawevei, is-iiun-, warrantable, and whatever'opinions [may be he,id on the subject it is a matter of sincere congratulation that the Dominion was in a position to help itself. When the Imperial Government was burdened with the obligation ot raising enormoua sums for war purposes, it was unreasonable for this Dominion to expect assistance from them.in such a time of financial straivi. The objections to the local proposals are confined to two features of the methods adopted by the National Government. A leading politician publicly expressed the view—" That personally;he was not satisfied that sufficient provision had been made for repayment of loans floated, and that the principle adopted in England should be tollowed here, by paying considerable portions out of the revenue." A moment's reflection should convince the most obtuse that any such policy is practically impossible. New Zealand is a debtor country. Capital is reauired for the development of its resources and the expansion of its present industries. To place a heavy burden on the shoulders of taxpayers by l immediate repayment would mean the depletion of capital for the above purposes. Posterity has an equal right with those of to-day to liquidate the liability. If ample provision is made by a sinking fund to meet the obligation at a given date, that is all that the Dominion is called upon to do. As to the remaining objection that interest payable on war loan investments should be subject to income tax. such a contention overlooks the fact that without some inducement tho money would not have been obtained. To obviate this difficulty, the rate of interest would have been inoreased, -which would bo no good to the Dominion financially. The aspect ot the question that concerns this Dominion, much more than the payment by debenture holders, is the diversion of fifty millions of money from legitimate channels of commerce and industry to be locked up in war loans. The need of this sum in years to come may be better imagined than described.

LAND. It is interesting to note that the total Dominion revenuo in 1014 was approximately £12,230,000, and this had increased, in 1919 to .£22,351,000. The principal increases arc in the land and income taxes. In 1914 the former was £7ii7,400; in 1919 it had.risen to £1,513,000. The latter in 1914 was £554,270, and in 1919 had jumped to .£6,219,340. During the same period Customs and esciw> duties had remained practically stationary, notwithstanding the fact that imported goads paying "ad valorem" duties had increased in value from 75 per cent, to 100 por cent., being in 1914 £3,554,000, and in 1919 £3,831,000. The outstanding feature of these figures indicates that whilst ail sections of the community have during the last five years experienced the difficulties attendant upon '"the higher cost of living," which has been the common lot of the community, the wealth of the Dominion has contributed magnificently towards the burden of increased taxation. This is perfectly fair and reasonable. No one objects to the amounts raised, it may have been urgently inquired, but exception may reasonably be' taken to the incidence of that taxation, whether it has been, just and equitable and is felt with equal severity by each and all of the- contributors, so far as this principle of direct taxation can be adjusted. Now the land tax has been left severely alone, the contention being that it was a matter for the country settler to arrange. This is a policy which is not conducive to the best interests of the community. Tho two, city and country, are interdependent. Whatever, in any system of taxation, hampers production, harasses any industry, and is a handicap to either, must inevitably retard the progress of tho other. Before any heavy additional burdens were "placed on land there should havo been a complete and full revaluation of all urban, suburban and rural lands. Vailues have adyanced enormously during the last two decades. If the latest figures available aro com- \ pared, it will bo found that for the ten years ended 1918 tho valuation of land and improvement thereon has increased, in 1909, which stood at £271,516,000, to £-421,296,000 in 1918. An advance of 55.16 per cent. Now take the improved values for tho same period; they stand relatively as follow:—£l72,760,000 as to £260,666,000. This increaso

is equal to 50.08. Now- no sane or practical man . who has given the subject careful -thought, but will come to the conclusion that during; the last twenty years the-,. .advance in landed -.property- . has been in the direction of the unimproved value. Take the following illustration of the position:—Fifteen years ago a dairy farm of 100 acres was purchased for' S22"pter acre. The improved value was then £llsO, and the capital value .£ISOO. Six years ago it was sold for £U per acre. To-day the present occupier could 6ell in the open market for .£70.,,, The, Government values of twenty 'years agp still .stand.. There are thousands of properties in the Dominion to-day in a similar position. The reply of the Income Tax Department to any such readjustment would be "that revaluation .of- the Dominion lands does ,n.ot come within the scope of its duties, that is the work of the Valuation Department." That may be true,- but where great- issues-are-at -stakes 'Government Departments that\have common interests should not be separated by bureaucratic """red" tapeism" when the welfare of the Dominion is under' con- ?"■•' '■••" """ " ••""'' Now no system, of-land taxation canbe considered fair- that ignores -uniformity in its method of valuation. Anomalies in., value are inexcusable: and , indefensible. , ,The. system, should. ; be. brought up to date and at approximate market values. This principle is nonexistent at present. Land values, prow perly and justly assessed, would be a strong deterrent in limiting values rising to a -fictitious price. There, as still a phase of land- taxation- that is highly objectionable and needs amending, levying heavy taxation, such, as special war levies "and'surcharges oh what the owner does not possess. l -Here is- -a-'con*-' crete instance-.—The capital value of -■ a property is, for argument's sake, .£15,000. The unimproved value is .£IO,OOO, and it carries a mortgage ot .£BOOO. What is. the-owner's equity", in the unimproved value .£2000? This is the sum that should be assessed, that is if the principle, is maintained that taxation should, be levied on what the taxpayer owns. Unfortunately the method to-day is to make little or no allowance for deduction of mortgages. It has reached vanishing point. inis method of levying taxation cannot be justified only on the ground of the exigencies of the hour. . ■--.'■ INCOME TAK. This has been considered by the council at special conferences and by; the association chambers. _ The of those deliberations have been placed before the National Government and alternative proposals" submitted, which would mitigate the incidents • of the present methods and not affect the total amount received. Unfortunately no steps have been taken to amend the acknowledged hardships'-existing especially as they apply to companies and their annual profits. One serions objection, to the present method is that,-, the.; statute, does not permit a person or firm, deducting from the profits for the year ending March, 31st. 1919. the income tax paid in 1919 for the year ending March 81st-,-1916, as a charge against last year's atsessment. The total amount paid in income tax for the year ended March 31st, 1919, was .£6,219,340 upon this sum the ■ taxpayers of the Dominion have this year to pav income tax on that amount. ■ If municipal taxes are free of income tax duty whv should .Government taxes-not occupy the same ..position? !■« LABOTJH. In referring'to this" Subject it may be urged that it is unusUal'to consider this important matter in an address of this chara-oter. The reply ■ to any such or similar objections is that the relationship 'between, . capital and labour is so intimate and vital . to , the interests of those engaged in commeroial.,,. pursuits that there is 'no legitimate reason why it should Tjo avoided.' - If in the pa-st ws have shrunk from facineyfehe'responsibilities of the-position' it ,4s i not now-de- 1 bateable whether it -should■-- be discussed under existing conditions. Long bVfore the war indications were not wanting to prove that- industrial troubles'.were simmering, and loomed larger than the proverbial cloud in the distant horizon. During the war period these difficulties- -were temporarily/ allayed bv appeals to our common- 'patriotism, conferences and substantial increase - to wages then paid or bv the way of war bonuses to meet; higher values of war products and the 'general "cost,',of.., liv:, Ing." Tie past year,has not-been signalled by any striking upheaval. The unrest and dissatisfaction is still manifest and deepning in' intensity 1 : The' ol> iect that Labour has in view is the readjustment of- present conditions. It maintains that the value' attached to> national prosperity does not" depend'or ruther should not depend on the increase of wealth, amongst the few,' the general prosperity of the nation and the develop-, ment of commercial pursuits, but in the improvement o' conditions under "which Labour works, standard of living and a more;' equit.aijle, and -, general distribution ".of all wealth amongst those who have" to toil with their hands. To hasten this: period it is'-advocated that all systems for the production of wealth should be .nationalised.-such as transport bv sea or land, the output of all 'coal mines, the total productions of'the soil 1 and the manufactured goods of industry. On this oseheme —• labour is practically united. ..Attempts will i be made-to at-' tain this tbv-.means of the political machine, and if evolution or constitutional, methods will, not bring it into existence a complete transformation,, then other processes must be adopted. Neither time nor space will permit a refutation of such plausible arguments; suffice it to say. the policy underlying whole structure-is. as old,as the history of the world, with, this,..difference,■ that the portion which is true is old, but that which is" now is not true. For tho last twenty-five years or more the wages paid to labour.in. any particular industry have been .fixed, and the conditions and hours, under ,which,, the work shall be performed' have-, been definitely settled either btf the' "Arbitration Court .or., tho ' Gonoiliatotf Council. *'Compulsory arbitration "" has "'not - "'prove'd' an unmixed blessing. - The above method of adjusting wages has not given complete satisfaction either to the employer or employee. Experience has proved that it possesses several advantages, but it is -a matter 1 of consilerable moment whether. the disadvantages attached thereto do not counterbalance the benefits received. There is definite proof that the fixing of tho minimum wage is not an incentive to best effort. It .fails to, discriminate between tho efficient and non-efficient worker in too, same class- of work. It has not prevented strikes jn the past as it was noped, and consequently ments made under the award of the Court have been binding on the employers, but not to the same extent with the employee. Further, it has not controlled or prevented the policy which is now being adopted of. restricting: outputs and limiting the ' production of labour, and above all has destroyed the very .foundation of mutual respect and confidence as between those immediately concerned. - ~.'■■■., After tins..lapse, of years, these two great forces, Capital. an.d Labour,, stand on the precipice, with something akin to bitterness on each side. One reluctant to forego.. its. privileges, tlie other armed with a, suicidal .p.oliev . of "goslow," which must ultimately end in chaos and anarchy. The present is spoken of as a ''new' age"; 1b it not the re-creation of an old world, shorn of its prejudices, its selfishness, basod on the principles which we, as a nation, have fought and'sacrificed so much for? What can be done-to draw closer the bonds that should unite the opposing forces? -The .first-.step-in; any satisfactory is,..that. the., capitalists-', the word .is.jusejj jn,.,jts . broad sonse-r embracing all "employers, must look beyond their own personal interests and regard the 'necessities and demands ot the community as primary. The strength*of this sentiment carried ub tlrrough*the welter- of war. - If it was cssenhal-and good then, it will be efficacious in peace. It may be a bitter lesson, but the fundamental principle has to be grasped that more injury is

done to the community by having discontented, depressed and underpaid employees, ' than any benefits the commu. nity will gain by accumulated wealth. .It. is a- hard thing to say, but the truth must be spoken, that in this new "recreation" .service to the community must necessarily rank superior to a largo income. How about the worker's attitude? His outlook on life must be considerably broadened. His views on many important questions require modification. The worker must realise that the interests of no particular section of the community can become paramount to the interests and prejudicial to the common good of the community. He must learn that bis best efforts should be given and the hardest work performed, not for a section of the people, but for the general good of the community. A "go-slow* 'policy which limits output will inevitably deny to capital a legitimate return and it will seek other forms of investment. Wages will fall, the industry' will become unprofitable and unemployment will follow. Such a' policy is dishonest. It takes all it can get by way of payment and returns partial' services for a given rate of pay., -It is a sin against ,the individual who adopts the policy and a crime against the community of which he forms a section and whom he professes to assist.

These two great factors, Capital end Labour, need to unite and co-operate in tho 'cause of greater production, the result being that then* will be enough to satisfy both. Confidence and trust must be restored, in each other, not that Capital shali be enriched or become more powerful, nor that Labour shall be again enslaved or.trammelled.-but that the for,mer .shall, receive a. fair return and the latter improved .conditions .of • working, 'better wages and higher standard of living, combinirur comfort arid contentment. : Thts questions now touched on are of such importance as to be' worthy of the consideration of the keenest, shrewdest and most brilliant of Wellington commercial men. and the council, during the year, in dealinc with these has done its best.

Permit mo. before concluding, to strike a personal note: That it is your boun-den-daty to spare a portion of each, day, full as it may be. in considering such and costnate subjects, and having reached conclusions thereon, give them, througß some medium, publicity for the good of the community. - - •