HIGH COST OF PRODUCTION.

Taranaki Daily News, 9 May 1921, Page 5

HIGH COST OF PRODUCTION.

ENGLISH AND AMERICAN METHODS COMPARED.

BRITAIN’S SUPREMACY.

“High wages, high profits, and high producing costs have raised a sore on the economic body that will only be healed by the somewhat horrible but merciful operation of a complete readjustment of the basis of production, distribution and exchange.” This view is the sum of the opinions expressed in remarks made the other day to a representative of the Times by Mr. Allan E. Box, who succeeded Sir Muirhead Collins as secretary to the Australian High Commissioner in London.

Discussing the present industrial condition of England, Mr. Box said that producing costs had ■ gone over the highlevel mark. For the first time within present memory England was unable to compete successfully in the world’s markets. America had recognised the same turn in her national affairs, but had taken quicker and more definite steps to meet it, while every employer, and every association of employers, hesitates to propose a reduction in wages, yet such was imperative to hasten the return of normal conditions. The United States railway corporations had already effected a 12J per cent, decrease in wages, and materia) reductions had also been made in wages in the steel industry. In England profits had already cut down in all directions, but a big. struggle must take place before Labor could be persuaded that wages must also be trimmed to a proportionate level with prices and profits. “Nevertheless,” remarked Mr Box, “wih all its economic difficulties yet to be surmounted, England will, I am confident, pay all her debts, and again assert her supremacy as the clearing-house of the world’s finance.”