FOR PROSPERITY

Evening Post, Volume CX, Issue 31, 5 August 1930, Page 9

FOR PROSPERITY

LAUNCHING OF DRIVE

A scheme which would have incalculable consequences for the economic life, not only of this country, but of all Europe, is reported to have .been decided on in principle, said tho "Daily Telegraph" recently. It is a comprehensive pact between the captains of German industry and the leaders of the trade unions to reduce the cost of production. The aim of this agreement is to solve the tremendous problem of present-day uuemployment ana to stimulate trade afc homo and abroad by the simultaneous reduction of prices and wages. Iri industrial circles it is rumoured that, unless unexpected difficulties arise, the representatives of capital and labour will wait ou the President and submit to him a joint appeal, which they propose to address to the country. In this the nation will bo exhorted to make a great effort to surmount the present industrial and financial crises. It will be indicated that'both the 'leaders of industry and their employees are prepared to make pecuniary sacrifices in order to attain this end. Finally, the expectation will be expressed that the more affluent classes will agree to "an. emergency offering" or special levy to balance this year's Budget. FOE THE NATION. It the appeal is approved by the President—as it undoubtedly will be — it will be issued to the nation with a covering manifesto by himself. The negotiations have been going on for some time past, but they have taken ■ place under the pledge of secrecy, and only vague rumours have leaked out. Undoubtedly they have had active encouragement both from the Cabinet and the President. Indeed, the chief incentive has evidently been the desire to relieve the national finances from the chronic disorder caused by tho ever-in-creasing cost of unemployment insurance. According- to the "Vossischc-Zci-tung," it has not yet been decided whether prices and wages are to be lowered simultaneously or whether workmen's earnings are to bo left as they aro till it is clear that a real decline in the cost of living has been effected. 'In fact, all the details of the reduction in wagea and prices have yet to be arranged. Thjs work will be undertaken by a joint committee representing the capitalists and' workmen.' Attention will first be given to tho building trade, which is at present hampered by wages at a level quite out of proportion to those in other industries. Other necessary readjustments will follow in the order of their urgency. WON OViK. 'It appears that after considerable trouble the extreme Right wing of the German industrialists has been won over for this groat scheme. Tho only doubts still remaining are to be found not on the side of tho employers but on that of the trade union leaders. The latter will naturally havo some difficulty in making the plan intelligible 1n their followers! .and. for this reason the term "reduction of wages" does not occur in tho manifesto which it. is proposed to issue. The nominal reduc-

tion of wages to which the workmen will have to submit is expressed in more ambiguous language.