The Grey River Argus FRIDAY, September 10, 1948. BRITAIN’S RELIANCE ON INDUSTRIALISM

Grey River Argus, 10 September 1948, Page 4

The Grey River Argus FRIDAY, September 10, 1948. BRITAIN’S RELIANCE ON INDUSTRIALISM

gIR Stafford Cripps, himself a wealthy man as well as Chancellor of the Exchequer in a Labour Government, is by cable reported to have this week impressed the British Trades Union Congress at Margate with the conviction that betterment in the general living standard can come only from a further rise in production. The emphasis is, of course, on production for export, and the Government so far has withstood demands for expenditure on capital re-equipment other than that needed for augmenting export output. It can be believed that there is anxiety at the conference as well as in other quarters, because Britain is attempting a recovery almost entirely on a basis of industrialism —in fact of capitalistic industrialism, because in the case of mines and transport it is State capitalism, and would be the same in the event of nationalisation of the steel industry now projected.. Sir Stafford illustrated a point, however, which some might overlook when he said that the profits of the capitalists (or companies) represent now one-tenth of the sum paid in wages, and one-fifteenth of that paid in wages and salaries combined, so that if wages were raised to the extent of cutting profits by 25 per cent., the gain for wages and salary earners would only be fourpence in the pound on their present rate of pay. The point here is that ' any substantial increase of wages and salaries must come from additional income, or production, rather than the present income or sales of the corporations. The prescription, he said, is more output per worker, oi* indeed per head of population. This is the essence of industrialism, and shows its contrast with an agrarian polity, which is based on production, not per capita or per machine, but per natural growth. A speaker in the Dominion Parliament last night adverted to the British Government’s financial inducements for farm production, but these remain a mere side line, the idea being still to obtain food mainly by exchange for industrial output. -In the actual set up of Britain’s population, as well as in its inheritance of efficiency therein, the industrial system has become the means nearest at hand to use for recovery. Sir Stafford Cripps is for emulating the Americans with new methods, and machines and more brains, rather than the traditional idea of extracting more out of mere manpower. He believes in planning,, and says the Government is ready to lay out this year two thousand millions sterling on capital investment in this direction.

From the Avorker’s standpoint, there naturally arc doubts as to the future income from the Government’s stabilisation scheme, and the T.U.C. attitude has been one of compromise with it, recognising that profits and prices have been thereby kept down or lowered, in some cases, and increases limited in other cases, coupled with subsidies for essentials. The T.U.C. request is that the Government shall, by controls, secure economy in distribution, reducing profit margins and retail prices. The trade unions and work people in the great majority have responded to the T.U.C. recommendations to stabilise, so that wage increases over a period have been no greater than the increase in retail prices. Recent demands, made by miners, and Avon by engineers, for a pay rise, shoAA r the ■T.U.C. to be under pressure, but the Council’s stand for continued stabilisation, hoaa 7 reinforced by Sir S. Cripps, is likely to be continued by its affiliations generally. The' alternative Avould be an industrial setback in the event of costs interfering Avith competitive ability. Profits in Britain are really at a high level, and if trade extends further at that profit level, there must be a greater dividend for all concerned. The T.U.C. response to the Government’s appeal is a policy of economy, stability and the highest level of real wages possible, instead of a race betAveen Avages and prices. It is a policy holding good for industry generally, Avhether OAvned publicly or privately. It is, in other Avorcls, inherent in an economy the basis of Avhich is industrialism.