WHO PAYS?

Taihape Daily Times, 4 August 1919, Page 6

WHO PAYS?

“SLACKENING MEANS RUIN.” LORD LEVERI-lULME’S WARNING. “Imposters are everywhere; in ‘full wol'ks»’ they are merely dawling :Iw'l_-,‘ time, and continually dl'awillg xvages, as many an employer can tell you. The percentage of workers whose output pays would startle you, were some employers to tell you the truth.” ‘The above as an extract from .a letter sent to the Daily Chronicle by -.1 working man, who alleges that in numerous industries output is being (18liberately restricted by workers who are “slacking.” With the object of securing the View of one of Britain’s leading Captains of industry, a Daily Chronicle repre'sentati\'e obtained an interview on the subject with Lord Leverhulme. _ “There is no doubt at 1111,”. Lord Leverhulme said, that at the present Lznoment a system 0 frestriction of out-

put is viewed with favour by a large body of workmen as 2, means of increasing employment. The opposite policy, namely, intensive production, even without any accompanying fatigue owing to facilities in the way of auto--I‘.~l.a~liC ". _ regarded as “Her 3, hoggish policy, an ddisloya.-1’ To fellow workers.

“This is an entirely wrong view. Increased production, by cheapcning the cost, results in giving to the workman’s wage full increasing power, which, in turn, increases consumption, and thus increases" more employment. Any factor that tends to decrease the cost of production, simultaneously and autornatienlly tends to increase consumption, raises wages," and finds employment for :21 greater number of persons,

“The ‘C7,.’ C.llDll_V’ policy :Ir_‘.opl':~d ax»fiantly in the building 11'adc—~L1m!vc1' which a man tO—day wil 11101‘ 1-.l}: mf)‘.'o than :1 third Of 71 qu:ll'f<‘l' the nul‘.lbcl' of bricks that his fatlicr I:lnd——h:ls had the rrsult of niaking ‘ordinary buivfling practically impossible. '

“It ha sue: increased the number of men emplo_‘,'ed in the building trade. but has rmiuced it; it has not inrzreased the Im}nbel' of houses ,avo.ilable for prosl;eeti\‘e tenants, but has reduced it; and it has raisefl the prospective rent of 2111 dwellings to be erected under any housing scheme. “The housingvproble mhfts now br—come so serious that it is proposed that the Govemment, while submitting _to the ‘ca.’ c:lnl_ly’ policy and making no effovxt. to combat it, should agree that :1 home which would let at an economic rent of 20/ :1 \'\'(.‘(.‘l( should be let. at 10/ or «less, and the difference made up by meaans of :1 Subsidy. “It has Keen the greatest surprise to he that not 9, single voice from the

ranks of organised labour has been raised ag‘-inst this papperising, charity{‘.l]llSllollS(‘ scheme. “Wages in the "United States are nearly double what they are in this country; therefore our difficulty here is not due toyhigh wages. Production in the United Eitateg is three to four times as much per workman as it is here, . “Ame"ican prosperity is fol‘.}‘.(lT‘d upon intensive 3‘-?'0(i11Ctl0Il by means of maichinery and mechanical utilities. coupled with the payment of a high rate of wage. “The two are inseparable. A/Ir Gompcrs, the Americrgi Labour leader, has declared "h.::t 20 odd yo:{ll'S age, the American v.'orl-(“nan discarded restric-

tion of output and ‘ca’ canny’ -as a policy that did not tend to his advantage, but rather the opposite. It was about the same time that the ‘ca’ canny’ policy came to be regarded in England as :1. practical one for the purpose of increzxsin-g erllp:l'oymCnt.

“Tl”.-e result is what We see today; wages are much higher than before the war, but the cost of commodities has increased to such an extent that the higher wage will not purchase the comfort: welfare, and betterment that the lower pl'e—\\'al' earnings placed Within reach of the working man. “I View all this merely as‘a. bad dre.anl——an ugly nightmare. We must; not forget the employer has learned the lesson of reducing cost by increasing output———of increasing profits by increasing‘ his business, _

“Tho v.'o1'1:111a1-4 15 only just coming to realise his I'esponsibilitics. He ‘is just awakening to his strength. We cannot 111z11've1 that it may take him some time to :le,a.l'll that only 011 the lines of i.ntonsivje_ production with lessened fatigue, :1 rcduchti-011 in the hours of labour, a‘ccompanie<l by reduced cost

of pVrod_ucti2n,‘can ho_ get creafed a fund out of .\’vh/ic_h he can draw higher wages/.‘>Cf siigh ample purchasing powm. that 11e;‘A\.\:i_i1":‘}‘12i\'7‘e;; placed within his reach n'l'alljr' ofW’c‘He"'€réations of modern

S‘”°"C°"..vs?'_”-.'.-'~:'.v-**_-\.'v- .'*-m-.—~.-»~ - “The wol’klng n‘l'all,"at the 111on1c11t. 11515 OV.@l'lQ_OMkCQ_/t-?}Q.._faQ’E that We must, for all timg,w:i§§..:}}i.lQ‘3“?P9fiti9ll with fhe rest 'of,t.-11.50 \‘vc')ls'lc_l.' ’_:'.l‘ilel'e. He no wol'ld--wir_l_e._f-en’;canny’ policy, 01' the whole-.--,wol'l_d .would I'otl'ogl':lde :1 thousand years. The wol'»l'd must produce intcnsively for the wol'ld’s inhabitants. '

“That nation will best mlccccd in achieving“ its own prosperity and welfare which pufs the fullest and nlo.<’.‘ complete service at the disposal of'its fcllcw—mcn in all parts of the world.”