Rangitikei Advocate TUESDAY, APRIL 9. 1907. SECOND EDITION. EDITORIAL NOTES

Rangitikei Advocate and Manawatu Argus, Volume XXXI, Issue 8782, 9 April 1907, Page 2

Rangitikei Advocate TUESDAY, APRIL 9. 1907. SECOND EDITION. EDITORIAL NOTES

AMONG-the vast number of resolutions passed by tlio Trades' Conference at Dunedin none was of greater interest than the following :—'' That whereas all financial benefit accruing from labour legislation in the past has been nullified by the action of the capitalist class in raising the prices out of proportion to the increase in wages, and whereas the reason of this lies in tho uncurbed power of capitalists, this conference strongly urges the people of New Zealand to make a stand, and demand .legislation that will initiate a system of producing the necessaries of life, and of supplying thorn to the people at cost." We have here an admission that thpLattompt to.- regulate

quaintcd with economies could easily have predicted that an artificial n?,e in wages in those industries which , are protected by natural conditions | or by the tariff, would infallibly lead to an increase in prices. Our legislators however neither knew or eared anything for the conclusions arrived at by those who have studied the question and now the Labour Party are waking up to find but that there are certain hard facts which cannot be neglected. It is undoubtedly somewhat of a surprise for working men to discover that an increase in mouey wages does not necessarily mean an increase in the purchasing power of the money earned, and that a man with 50s a week may bo really no better off to-day than he was with 40s a week ten years ago.

IT might have been expected that the discovery that past legislation lias failed to produce the desired results would have made members of the conference a little less cocksure as to the methods employed in dealing with complicated questions, bnwe find them perfectly ready to settle the matter off-hand. The reason wo are told of past failure has been the uncurbed power of capital, a high-sounding phraso which really tells us very little. The assumption that underlies the phrase appears to be that when wages are raised by the Arbitration Court-em-ployers put up the price of the articles produced in .a greater ratio than the increase of wages and consequently make larger profits than formerly. No doubt this may occur in some cases but it must not bo forgotten that if profits in any business increase unduly there is at once an inrush of capital into the business and greater competition speedily pulls down the general rate of profit. The conference offers uo proof that the average profits of employers are greater to-day than they were when wages were lower and in consideration of the fact that demand slackens as prices go up wo certainly require some information before accepting an ex parte statement on the subjeet.

THE method in whioh the conference proposes to overcome the difficulty of high prices;; is that Government should undertake the production of the necesaries of life and distribute at cost price. It is touching to find such wonderful evidence in the power of Government to conduct business on more economical linos than private persons. In no country in the world are Government enterprises carried out cheaply and New Zealand in particular is an absolute bye-word for lavish and inefficient expenditure, yet here of all places the Government is to launch out into new and untried fields if our labour friends are to have their way. Bach absurd proposals cannot bo considered for a moment, but there are other more defensible schemes which would result in making the pound note go farther in the purchase of necessaries than it does to-day. It is quite evident that the farmer cannot raise the price of meat or butter, however much his expenses of production increase, since the price is settled by that of the London markets. So long as London prices are high we be content to pay high prices in New Zealand also. There are, however, j numerous articles for which manufacturers can charge high prices here because the market is closed, or nearly closed, to outside supplies by high protective tariffs. A reduction in' the duties charged on such imports would have a considerable effect in reducing prices, as manufacturers would find that they must .either sell more cheaply or lose the market owing to the importation of cheaper goods. It is on these linos that reform should be made. The British Labour Party realises the advantage of cheap supplies and will: resist to the uttermost the wiles of protectionists, but the New Zealand Labour Part-, though it is beginning to realise the evil of high prices for the necessaries of life, continues to pursue a will-of-tlie.rwisp in the sh:vpo of the nationalisation of industries, which will lead them farther and farther from the firm ground of practical experience.