ONLY SALVATION

Evening Post, Volume XCIX, Issue 148, 17 June 1920, Page 7

ONLY SALVATION

WORK, AND MORE WORK

WHY PRICES GO UP

THEORIES AND PLAIN TRUTH.

The need for bard work as the only remedy for high prices was the theme of remarks made by the Prime Minister yesterday on the eve of his retirement from the position of President of the Board ,of Trade!. There ware many, theories, he said, as to the causes of the increased cost of living, but the most important factors of all—the havoc of war and the slackening of industrial effort— seemed to be overlooked by the general public. Throughout the Dominion there Was a demand for "pre-war conditions" and "pre-war wages, ' which made it necessary to review briefly the effects of the great war, in relation to cost' of living. "What were the conditions- in New Zealand -five years ago 1 All classes here were employed in the works of peace. In the main, the strength of the country's manhood was tised for production. Then came the war for the saving of civilisation against Germany's scheme of enslavement to a military despotism, and, the flower df New Zealand's manhood' was diverted from the constructive, productive arts of peace to the tasks of war. New Zealand's help in sa-ving the world from Germany's domination cost the Dominion more than sixteen thousand lives of stalwart young men; wounds and sickness changed mdoy others- from producers to dependants";, others had their •productive power greatly diminished, and are thus partially dependent on the State. The sequel to this sad toll of the men has been the granting of State help to many thousands of women and children whose'bread-winners have lost their lives or their productive power in defence of their country. In addition to the heavy destruction of man-power, there was a huge consumption and destruction of wealth in .the operations of war. One effect of this diversion of materials.to the needs of war has been the doubling of - New Zealand's public debt sinoe the year 1914.

THE POSITION TO-DAY.

"What is the position here to-day? New Zealand, With a serious reduction of productive power, has to bear enormously' increased burdens.. How, then, is it possible to have suddenly the 'pre-war: conditions' and the 'pre-war wages' ? Who can work the- miracle of increasing the real wages (the needs of people with a comparatively high standard of living) per head of population when the production per head tends to decrease? Ob : viously, when the war came to an end, the people were faced with the need of working harder and producing more, irf order to' assure fair living conditions ft>r the disabled and for the dependents of the dead and disabled. There was also the burden of the war-winningl, as reflected in the immense increase" of public debt. . Yet what is the plain truth, which no fair-minded observer can'deny? Instead of increased effort to meet the Dominion's urgent need there is a widespread slackening, and some of this has been due to the strain of extra exertion during the war, and some to other causes only too well known. Whatever the cause the effect Is the same. There is a. loss of production, which must reduce the share of products per : head of population. In other words, there Is an automatic reduction of /eal wages. Nominal wages, as measured by money, the mere medium of exchange, may .be increased for groups of workers, but it is obvious that taking the population as a whole, if the -community produces less it haa less to consume; therefore, the average of real wage&si'or the whole population must be less. ■ There' is\;no -possible artificial method of making the average worker's position_ better in real wages unless the prodiiction is increased. "

WORLD-WIDE SLACKENING,

"This slackening of effort is worldwide ; many countries are troubled with the temporary madness which lies, in' the desire to produce less and consume more. There can be only one end to that kind of lunacy—universal poverty and chaos. Mr. Archibald Hurd reviewed this 'go-slow' folly in a recent issue of the Fortnightly R-eyiew. He showefl that in shipping the efficiency rate had declinedin the proportion of 100 to 66. A similar decline has been noted in other industries in Great Britain, as well -as in New Zealand- and other countries. This decrease means an inevitable increase in the cost of living; "While this slackness continues, various theorists, seem to .believe that the share of goods per head of population can be immediately increased by a rearrangement of the currency.' Prices may be affected by an unsound system of currency, but tho real solution lies in.work, more work, and still more work, steady, conscientious .work. Tho instinct of eeif-preservation should induce the community to work harder. In a* very helpful book, 'From War to Work,' Mr. Samuel Turner remarks: 'Money is the medium of exchange, but the only real wealth is commodities. If employers and workers in each industry produce with steam shovels instead of hand shovels, it is obvious that that industry will have vast quantities of goods to exchange, and will ultimately receive vast quantities of othar goods in return. Commodities, that is to say, will be cheap. It is inevitable. There is nowhere else for the goods to go. . . . The main issue is production. Given that, it goes without saying that wages will be good and ample, for under such conditions there is no reason on earth why they should not be; in fact, such wages, are a necessary element in the. process.'

INCREASING PRICES.

"Mr. Turner's point iB, of course, that large consumption goes with large production, and large consumption requires sufficient purchasing power; .that is, i real wages increase with increase of production. One word summarises 'From War to Work/ and all- other books, pamphlets, newspaper, articles, and speeches that are worth while on the . subject of cost of living—and that word is-'Work.' While many thousands of people are deferring the return to the pre-war willingness to work, and are thus increasing the cost of living, the Board of Trade and the Price Investigation Tribunals are working hard to minimise the exploitation of. the public by the charging of excessive prices for commodties. The officers entrusted with this work are doing their duty earnestly and conscientiously, as the evidence available will prove to any unbiased citizen."