The Daily News. TUESDAY, SEPTEMBER 7, 1920. THE OUTLOOK.

Taranaki Daily News, 7 September 1920, Page 4

The Daily News. TUESDAY, SEPTEMBER 7, 1920. THE OUTLOOK.

The recent cable message from London concerning the outlook reflects the general feeling of uncertainty that exists in the money market, trade, industry and international affairs- In every direction there are ominous portends indicating deeply-rooted unrest. It was inevitable that after the termination of the great war there would arrive a period, of uncertain duration, wherein the people of most of the , nations would endeavor to bring about a new era to accord with the changed order . caused by the ,< knowledge ' that power was in the hands of the many and not of the, few. The workers have tested tlieir strength and proved its value in improving their conditions of service and forcing up wages, some employees drawing as much as £25 weekly. No industrial concerns can stand such enormous drains on their resources for long, consequently the prospect of serious trade depression and unparalleled unemployment is becoming alarmingly evident. Already the general shortage of necessary commodities is gravely affecting all classes, and the cost of living is advancing at a rate that cannot fail before long to create a. Serious crisis. During the past fortnight the London money market, exhibited a shortage which was undiminished at the turn of the month, although the Government had paid out twenty millions in dividends. Apparently money is likely to become dearer, and the position is accentuated; by the danger of a coal strike and other industrial troubles. According to Mr. Adamson, leader of the Labor Party in the House of Commons, the coal strike is to be a big one. The Minister for Labor hopes it may be averted, but as the struggle is not so much for wages as for the demonstration of the power of the miners to dictate the selling price of coal, the elements of a serious crisis are present, especially as the Triple Alliance will stand by . the miners. The action of the banks in refusing to provide the miners with the sinews of war is only what / might have been expected, for in face of the scarcity of money, to have advanced loans to the miners would, under the circumstances, have been equivalent to furnishing them with the main weapon for an industrial upheaval of great magnitude, thereby making the disaster far more serious. There is a possibility that the trouble may be settled by negotiation, though the prospect in that direction is not promising. The, adverse influences of these continued strikes and threats of strikes is apparent on the Stock Exchange, where not only industrial securities, but even those known as giltedged, are suffering. In South Wales a serious depression has begun owing to the uneconomically high wages and restriction of coal exports. A far greater evil is the loss of trade consequent on shiprepairing and other work being transferred from Britain to the "ifiaatifltet. jNktto .w&gea a?.?

| erate and the output faster. Trade lost in this way is generally very difficult to recover, yet Labor ignores the logical result of its present tactics, whereby the work on which it is dependent for a living is being driven elsewhere, and may never come back—the goose that lays the golden eggs is being killed' Unfortunately there is a deplorable ignorance on the part of Labor's rank and file as to the main principles of political economy—laws which can no more he set at defiance without grievous harm ensuing than can the laws governing health. Making all due allowances for the measure, of unrest which is part of the legacy of war, there is still an inexplicable gap between that measure and the amount which actually exists today. This phenomenon is not confined to one nation; it is common to most, and therefrom the only rational deduction is that the human factor is at fault. Seemingly, as things are rapidly going from bad to worse, nothing but a severe crisis will .clear the air. Either that or an awakening on Labor's part to'ttje danger that is now threatening the industrial world.'