THE FAILURE OF ARBITRATION.

Evening Star, Issue 12766, 20 March 1906, Page 6

THE FAILURE OF ARBITRATION.

TO THE ranTOB. Sir, —Mr Warren’s letter on .the above subject is a remarkable production. It shows how different minds will draw different conclusions from the same set of facts, and thereby .further perplex the human understanding. Mr Warren objects to the. Act being declared a failure, and requests me to “ explain what section of the Act deals , in any way, directly or indirectly, with any economic reform.” If the Act is not intended to deal with economic reform it mutt" for this reason alone j be regarded as a failure. The j

and the trades unionist . in. hailed the -advent of ooiripinlaoty: axhitr*. tion as a means by which strikes,and loolcout a would be prevented, but neither t&f legislators wbo' passed the Act, nor th 4 ■ . workers who accented it, saw at ,the Imm ! that, strikes and lock-dots are caused by. disputes which m their essence are distinctly . economic. Mr Warren has not yet arrived at any definite conclusions oa •this point, for he says : —“ It seems him.) that the desire is to jumble ,up » ooci al problem with a nnredv Labor problem;” Had- Mr Warren the, necessary economic training he would have had no difficulty in coining to a fixed conclusion, but as ho candidly admits that “lie only claims to have a kind of hazy knowledge ■ of the subject,” his conclusions axe accounted for, and it is.no wonder that be cdmoniia himself to ftaiher amazing state* merits. Thus Mr Warren says:— M As rent and interest appropriate the Boa’s nbare, it is evident that neither party can increase ■ the fund that is- available for ; wages and profits.’’ The-assumption that there is a fund dot of which -wages and profit is derived, and ” that the dispute in the Arbitration Court is over the wageearners’ share of what is loft,” betrays the want of a true comprehension of the subject Every person who , has fully grasped the operation of economic principles is aware that both rent and interest in every instance of industrial and commercial enterprise are always paid out of profit, which constitutes the surplus in production. To increase wages from.this \ surplus by giving the workers a higher money wage is an impossibility, because the moment wages are increased,, said increase is no longer drawn from profits, but becomes a part of the expenses in production, and is paid by the consumer, which defeat© the object. .The Arbitration Court, for this reason, must be regarded as a failure,. as they have no power to take. “ from‘what is left,” which conclusively shows that'a totally different course •must be pursued in order to obtain the worker’s share of the increment in production. : ~ . It cannot be too forcibly impressed - upon the working classes that the! solution of the labor problem can never be attained by any increased payment in money, and every Labor leader who pursues this course becomes an impediment and a real opponent of Labor. Until Labor leaders understand ‘“the Tunning of the ropes,” all their force of character, honesty of purpose, and enthusiasm, for humanity w3l be spent in vain. It requires, in addition to the above qualities, a knowledge of economics, which will complete the equipment for a successful contest. —I am, etc., W. SXVKETSEN. March 20.