UNEMPLOYMENT

Taranaki Daily News, 21 October 1921, Page 5

UNEMPLOYMENT

BRITAIN’S GRAVE PROBLEM. WORST FOR HUNDRED YEARS. PROPOSAL FOR SOLUTION. ASSISTANCE TO TRADE. An important statement, outlining the Government’s proposals to deal with the unemployment problem in Britain, was made by Mr Lloyd George in the House of Commons. He said there could be no considerable improvement in trade for some time, and there must be considerable unemployment. It was the worst unemployment for a hundred years.

The proposals include an extension of the export credit scheme, assistance in raising capital, measures to relieve distress, the continuation of relief wdrks, and the settlement of ex-service men overseas. The Premier, however, emphasised that expenditure must be cut down, for the national debt amounted to £8,000,000,000. By Telegraph.—Press Assn.—Copyright. Received Oct. 20, 5.5 pjn. London, Oct. 19. Mr. Lloyd George, in a statement in the House of Commons on unemployment, denied that the Government had done nothing. It had distributed under the insurance fund £48,000,000 to unemployed families. The Government proposed to ask for a further £300,000 for the settlement of exservice men overseas. There could not be any considerable improvement in trade for some time and there must be considerable unemployment. Relief work at the best was unsatisfactory and doles were worse. The Government would amend the export credit scheme and extend it to all countries, including the British Empire. The Government guarantee to exporters would be raised from 85 per cent, to 100 per cent. AFTERMATH OF WAR. They were confronted with the period of unemployment known for 100 years. There were 1,250,000 unemployed. The greatest unemployment was in the metal trade. The whole cause could be summed up in the one word “war.” There were two possible policies, first to do nothing; second, for the community to do the best that restricted means would permit and to render such assistance as it could. No one seriously advocated the first course, apart from considerations of humanity, and the Government unhesitatingly recommended the second course. It was untrue that so far the Government had done nothing although they had all been stigmatised as callous capitalists. Mr. Lloyd George, replying to the charges that the Government had done nothing, said that in 1919 conaiderabL sums were voted to restore trade with central Europe and £26,000,000 were voted for the export credit scheme, while in 1920 a Bill was carried which added 8,000,000 workers to the insurance fund. Under that scheme £48,000,000 was distributed to unemployed families. The Government had decided to ask for a further sum under a scheme to settle ex-servicemen overseas. THE TRADE OUTLOOK. There were undoubtedly signs of a revival in some important industries, but others showed no signs of improvement. There could be no considerable improvement for some time. The best hope was not for a short-lived and feverish boom, but for a slow and steady improvement. Britain was more dependent on her overseas trade than any other country. The world needed our goods, but could the need be converted into a demand, and the demand into the payment of our export credit? It had become a question of an exporting trader taking a risk and the Government sharing it. It was therefore proposed to raise the guarantee to traders from 85 to 100 per cent, and fix a maximum for each firm. There was much to be done at home and abroad in loosening the wheels of industry. The first objective was the restoration and the improvement of the means of production and transport. Undoubtedly the cost of production was too high. There was also the difficulty in raising capital for some enterprises, and still greater difficulty in raising it at a price that would not burden enterprise. No Government could find a remedy for the high cost of production. Taat was a matter for the employe! s and employed, but the Government would guarantee interest on new capital required for railways and electrical works calculated to promote employment. THE NATIONAL DEBT. The total State guarantee would not exceed £25,000,000. A committee of finance and industrial experts would foe appointed to administer the scheme. There would also be measures to relieve distress, and relief works begun would be proceeded with and a further £lO.000.000 allocated for this purpose. Unemployed would be assisted for six months by a weekly sum of 5s for a wife and I/- for each child up to a maximum of 9/-, to be provided by a compulsory levy of 2d each from the employers and employees, with 3d from the State. In the case of women, girls and boys the levy would be a Id and from the State 2d. A Government loan would be granted to the boards of guardians to deal with necessitous cases. However, expenditure must be cut down and nothing could get rid of the fact that we were £8,000.003,000 in debt, and that we cannot build up our strength on patent medicines. Trade would never be restored until the cost of production was reduced. He appealed to the labor leaders to face the problem. .‘Everything depended upon a complete understanding between the workers and the employers and the goodwill and co-operation of nations. A resolution was submitted to give effect tG GAMKaSMM

CRITICISM OF PROPOSALS. Clynes (Leader of the Parliamentary ‘Labor Party) welcomed the credit scheme, but hoped the Government assistance would involve a minimum of interference with trade. He believed that if the workmen could make a contribution in the reduction of the cost of production it would be to their primary interest to do so. Nevertheless,. ft was essential that the standard of living should not be lowered. He thought the supplementary giant under the insurance scheme was inadequate. Mr. H. H. Asquith (Leader of the Liberal Party) regretted the proposals were not brought forward earlier. He regarded the credit scheme, in view of the fluctuating exchanges, in the nature of a gamble. If unemployment were grappled with there should'first be a remission of the crushing taxation which was the direct of unemployment. The root of the cause of unemployment was international. There should therefore be a reconsideration of the whole problem of international indebtedese. Mr. Asquith stressed the importance of trade with the Dominions and there was no reason why, with wise development of inter-Tmperia’l resources, assisted by the Imperial Government, we should not establish trade between the Dominions and Britain which would altogether overtop our European trade. Sir A. H. Steel-Maitland (CoalitionUnionist) considered the system of reparations under the peace treaty contributed to the prevailing instability and unemployment and this system called for early revision. RECEPTION OF THE SCHEME. GENERAL APPROVAL EXPRESSED. VIEWS OF INDUSTRY’S LEADERS. Received Oct. 20, 10.25 p.m. London, Oct. 20. The Premier’s proposals for the extension of the trade credjt system and assistance in raising capital has been well received by representatives of the big industries. The details so far made public leave little room for criticism; both schemes have been thoroughly discussed and are regarded as sound and workable.

Separate committees are being established to deal with the two proposals. It is understood the Government offered to leave the management of the credit system in the hands of leading bankers, but the latter decided that the scheme should be managed by a com\ nrittee within the overseas trade department. It ,is noteworthy that the conference in this connection was of a friendly character, the bankers giving every assurance of future assistance. The Times, in a leader on the Government scheme, says there are some obvious defects. It has been hurriedly prepared under pressure of public agitation, and is open to objection on account of entering into the general trade 'affairs of the world, but the times have changed. The country is faced with the gravest industrial emergency in its history and therefore the proposals must be scrutinized in the light of the stem facts which compelled the Government to make them. The Times adds: “We are strongly inclined to believe that the most serious defect is that the scheme tends to increase outlay and consequent taxation without offering the country any prospect of immediate relief from its crushing fiscel burdens. Nothing, we are persuaded, would more effectually stimulate enterprise than a bold reduction in some of the heavier forms of taxation.”