HIGH WAGES PAY

Evening Post, Volume CXIII, Issue 55, 7 March 1927, Page 11

HIGH WAGES PAY

THE AMERICAN PLAN

SECRET OF PROSPERITY

AUSTRALIAN WAY WRONG

(United Press Association.—Copyright.) VANCOUVER, sth March. The Australian Industrial Mission was heartily welcomed at Seattle, where at a luncheon tendered by the Chamber of Commerce Mr. W. M. Short, president of the Washington State Federation of Labour, in tho course of a "speech, said: "American labour has always recognised that the chief problem is the equitable division of the production of industry, and not the restriction of output. The higher the earning power of the worker, the larger his share of the prosperity. We never shared in the policy of go-slow, based on the fear of over-production, resulting in unemployment. The problem to be faced is not over-production, but underconsumption. As we increase the earning power of the workers, likewise we increase their purchasing power." NOT "BACK TO NORMAL." Business leaders, he said, took time to realise the wisdom of this policy. Two of the chief addresres" at the last' National Convention of Chambers of Commerce were based upon the importance of high wages on the general prosperity. The federation in 1920 opposed- the post-war slogan, "Back to Normal," on which the Presidential campaign was won. The federation's policy was that it was better to resist and lose than not to resist at all. It would have meant industrial and business stagnation. Later industrial leaders supported the federation's views. It would be a fallacy to revert to the 1914 standards, which the slogan meant, as proved by countries which endeavoured to return to normal. Those who swung to the 1924 standards have progressed unretarded. ECONOMICS AND POLITICS. Mr. Short advised the mission not to visit all American industries, as numerous American employers had not accepted the doctrine of high wages, but were gradually coming into line, as the nation was definitely committed to that policy, high wages being real wages, increasing purchasing > power. The controlling power of America, was. 110t Congress, nor even the White House; because the problem was economic, daily political power was giving way to economic power. Australians were mistaken in accepting compulsory arbitration, permitting polfticians to control economic questions and conditions, the workers' only effective machinery to deal with such matters being economic machinery, mutually agreed upon and established between employer and employee. The machinery for settling industrial disputes must be on the job when" the problems arose.

If the mission finds a plan to replace class hatred," Mr. Short said, with mutual co-operation, aiming at the equitable division of production you wi 1 fulfil your purple DiV deeply m to American industry, and you will find their plan being generally adopted, governed by voluntary organisations of workers and employers. High wage standards are responsible for the prosperity of America."