Wairarapa Times-Age TUESDAY; AUGUST 27, 1940. AN APPROACH TO VICTORY.

Wairarapa Times-Age, 27 August 1940, Page 4

Wairarapa Times-Age TUESDAY; AUGUST 27, 1940. AN APPROACH TO VICTORY.

AT a "Teat price—a price measured in the lives not only of valiant airmen hut of members of the civil population ol the Unitefl Kingdom —Britain visibly is fighting her way towards victory in the continuing air battle that is being fought over her territory ami round her coasts and in the unrelenting counter-offensive' that is being waged by the R.A.F. bombers which by day ami night are making planned and destructive attacks on the enemy in his own country and in. the countries he has occupied. Much as attention centres on thejur lighting over and around Britain and although the possibility is not to be overlooked that a further tragic toll is likely to be taken of the British civil population, it is of high and encouraging importance and significance that British bombers are proceeding with their offensive according to plan and on a scale ol dedeveloping intensity. A contrasting state of affairs is already apparent in the enemy offensive against Britain. As an expert commentator, broadcasting from London, has pointed out. there have been thus far three distinct, phases m the air battle over Britain which opened on. a scale of great intensity on August 8. In the first- phase, the enemy launched a series of mass attacks, evidently intended to be overwhelming in effect and perhaps to open the way to invasion. These attacks were defeated decisively, at disastrous and disproportionate cost to the enemy. The second phase was that of an enforced lull, in which the enemy’s efforts dwindled. Then came the phase now in progress, in which planned and directed attacks have given place to more or less indiscriminate bombing—a policy of “hitting at anything and everything in sight.lt is justly emphasised that the probability remains that Nazi Germany, if in mere desperation, may be expected to throw the whole of her air strength into an effort to overwhelm Britain. Whatever this may pnean in death and suffering to members of the civil population of the United Kingdom it is already clear that the enemy’s prospects of achieving results of military importance are diminishing as he turns from planned and massed attacks to indiscriminate murder bombing.

STOPPING THE VICIOUS SPIRAL.

YN unqualified welcome may be given to the decision of the Government, announced by t he Prime Minister, to call almost immediately a conference to consider the possibility of stabilising costs, wages and prices in New Zealand. The interested parties to be represented include the Government, the Farmers Union, the Federation of Labour and the New Zealand Manufacturers’ Federation. Presumably there will be some representation of commercial, transport and other interests.

It is rather a pity that the consumers of the Dominion cannot well be. represented in that capacity, except perhaps, in a rather general way by the Government. In setting just emphasis on the vital distinction between real wages and money wages and in other ways, an effective representation of the consumers of the Dominion would go far to ensure great changes in current methods and standards of industrial and general economic regulation. Even as matters stand, however, the conference about to be called is admirably worth while. In the war period thus far we have by no means unleashed our total productive energies as a national community and we are drifting deeper into an entanglement, of inflation. In an attempt to cope, with higher prices, resulting from war scarcity and high taxation —much of which is a direct or indirect addition to the prices of goods —a. five per cent increase has been made in award wages and already other organised sections of the community —notably civil servants and dairy farmers —are demanding corresponding concessions. At an immediate view these sections are able to make out quite a good case. Civil servants, for instance, are demanding equality of treatment with award workers and dairy farmers point out that some'eighteen months ago the prices paid for their produce were stabilised, ostensibly as part and parcel of a general halt in the upward movement of money wages and costs. Instead of halting, however, costs have continued to rise and dairy farmers are now demanding that they should be given higher prices to offset increased costs and that when this has been done costs should be stabilised.

The general problem presented is in the nature of a tangle which becomes worse as it is handled ineffectively. Apart from the fact that it leaves some sections of the population entirely out of account and subjects them to increasing injustice and hardship, a policy of granting increases to all organised sections obviously offers no remedy. These organised sections constitute so large a proportion of the population that the total effect- of the increases, in the absence of an accompanying increase in the amount of available commodities as against the volume of money in circulation, is inflation—a depreciation the purchasing power of money by which even those who secure increases in wages or other income suffer, and those who get no increases of course suffer most of all. Already demands are being raised by some sections of organised workers for further and heavier increases in wages and it is painfully clear that in the absence of a positive policy things will go rapidly from bad to worse.

NEED OF POSITIVE ACTION.

TN any rational attempt to grapple with the problems of internal economy which are assuming such a serious aspect in this country, attention must be concentrated on the real factors at stake. These factors are our productive resources and the volume of goods and services that can be made available by internal production or by importation. If the conference on costs, wages and prices about to meet attacks with an open, mind the problem of enlarging useful production, in conditions fair to all concerned, it may confer important benefits on. the people of the Dominion, not only during the war period, but permanently.

Too often and 100 predominantly, industrial negotiation in this country (and in a good many others) resolves itself into a game of pull devil, pull baker. What is needed, but is largely disregarded, is an attempt to arrive at. an equitable adjustment of a partnership in production, with an eye always to the fair treatment of the body of consumers upon whom all industry is dependent, for the market without which it could not exist. If the impending conference is to serve any useful purpose its delegates must be prepared to deal on their merits with the questions that will come before them. Unless the delegates are prepared to do this it would be better to save the cost of bringing them together. What ought to be considered is hohv far it is possible for tlm parties in industry Io go in furthering and increasing all forms of useful production, bearing in mind that in the conditions which exist at present and are developing, any avoidable check' on production will directly and seriously penalise all sections of the population in greater or less degree, and will continue to do so in spite of any method of monetary manipulation t hat can be devised.

While increased and more efficient production is by far the most important contribution that can be made to the stabilisation of costs, wages and prices, there are other measures which will assist to that end and should not be overlooked. Prominent among these is the methodical war saving which has been developed and is being continued on a great scale in Britain and is now well under way in Britain. War saving, wisely directed, serves a double purpose. In limiting immediate expenditure it does something to offset and limit monetary inflation, and it serves also to build up capital resources which will ensure, an enlargement of production as time goes on. New Zealand is definitely behind the limes in not having instituted and boomed a popular war savings campaign. That fact may well be emphasised at the conference about to meet, bld the principal task confronting delegates is that of charting conditions in which useful production of all kinds may be enlarged and expedited. It is by the manner in which that task- is dealt with that the success or failure of the conference will be determined.