(published daily.)

Hawera & Normanby Star, Volume IX, Issue 1740, 28 September 1887, Page 2

(published daily.)

WEDNESDAY, SEPTEMBER 28, 1887.

THE COST OF MANUFACTURE

IN NEW ZEALAND.

Among the questions raised during the recent election was the following. If 25,000 artisans turn out manufactures to the value of seven and a half millions sterling, what proportion of that sum would be paid in wages? This question has been confused by persons putting it in a less simple form, and asking how much went to the artisan, and how much for raw material. Over-looking the fact that interest on the cost of site of factory, of the building, of machinery, and also the cost of coals, and of wear and tear hare to be taken into account. The real question at issue was not how much had to be allowed for the raw material and incidental cost of manufacture, but how much out of seren million pounds worth of manufactures had to be paid in wages. It was shown that in round numbers tach artisan in New Zealand turns out manufactures to the value of .£3OO in the year. Mulhall says " The average product of each operative in Great Britain is £185, Germany £111, and

the United States £403. > American labor is much more productive than that of any other country for three ! reasons. Firstly because the ratio of | ablebodied men among the operatives is larger ; secondly because machinery is brought to greater perfection and ' more universally used than in Europe ; thirdly because protective duties give an artificial value to those products intended for home consumption." It will be seen that while the New Zealand artisan produces on the average 25 per cent, less than the United States operative, the average productof each New Zealand workman is over 50 per cent, more than that of the average operative in Great Britain. Mulball, writing of wages, says : " British operatives earn from 30 to 33 per cent, of the manufactures they produce, but in the United States the workman gets only 18 per cent., although in other respects he is better off than his English brother." And he also gives a table to show that in 1850 the United States artisan earned in wages 23 per cent., and in j 1880 he earned less than 18 per cent, of the value of manufactures. " This small ratio of wages," he adds, " explain how Americans are able to compete with European nations, where labor is cheaper, and to undersell even British manufacturers in many things." Towards the conclusion of the chapter on " wages," Mulhall goes on to show that the product per operative in the United States has risen 83 per cent, since 1850, while wages have only risen 43 per cent. The improvement in production has been double the rise in wages, thus confirming the principle that the best paid operatives are the most productive, and consequently the cheapest. It is necessary to explain that the average wage paid to the operatives had been previously cited for 1880 as follows :—: — Shillings per Week. Waves. Pood, Great Britain ... 31- 14Europe 20- 11United States ... 48 - 16/Australia 40/- 12/The position of the last named being the best on ihe list, as only 30 per cent, of his wages, as against 33 per cent of the wages of the United States artisan, are needed for food. By the light of the above figures, it may fairly be assumed that the New Zealand operative turning out £300 of manufactures in the year earns in wages roughly about one-third of total value of the goods. The question was first raised by its being assumed that 60,000 artisans would turn out only three million pounds' worth or" manufactures. As a matter of fact, it seems they would turn out about eighteen million pounds' worth of goods, and would receive in wages about six millions, or £100 a year each. Before quitting the subject, we may as well deal with woollen manufactures. In 1883 the value of raw wool is set down at sixteen millions sterling ; thcvalue of woollen manufactures atforty-five millions sterling. In the latter year raw wool is valued all round at 12d per lb ; in 1850 it was valued at 23d. Jt has been contended that because a yard of cloth weighs perhaps lib and costs, say, 68, the raw wool being only Is per pound, the tables given by Mulhall must be wrong. It would seem that those who cavil at the figures forget that whereas lib of cloth may cost 6a, lib of fine blanket costs perhaps 2s, inferior blankets Is 6d or less, and woollen carpeting and coarse felts very much less per lb. than that. All these are woollen manufactures, and all have to be taken in account by statisticians like Mr. Mulhall, who has devoted his life to this study. His Dictionary of Statistics, " Progress of the World," and "The Balance Sheet of the World," have ieceived the highest praise from competent reviewers all over the world. It is satisfactory to have ascertained as the outcome of this enquiry that the Australian operative is in a better position than any other in the world. Two days' wages being more than sufficient to cover the cost of a week's food. If the yearly ptoduts per artisan in New Zealand could be further increased by the more extended use of machinery until it equalled the yearly production of the United States operative, the higher average rate of wages there current might follow, and as we believe, vith general advantage.