The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNEDAY, JULY 30th., 1924. THE ETERNAL QUESTION.

Hokitika Guardian, 30 July 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. W ED NEDAY, JULY 30th., 1924. THE ETERNAL QUESTION.

Tjik modem eternal question is the matter of wage rates. The fair and first relations of wages to industry or ■production are governed by t-li© economic as[H?ct involved. An American financial review of the matter puts these questions:—ls it jxvisihle to maintain an inequality of compensation which judged by pre-war standards is 'artificial, and have even the beneficiaries of that situation enjoy permanent prosperity? In other words; does not- the economic law require ,n fair exchange, of goods and services throughout industrial society as the price of prosperity oven for tire strongest groups? The labor leaders have been very determined in their opposition to any reductions front the ’high wages of Itoom times, and have 3 toasted of their .success in defeating

attempts to nee ure them. AY here such reductions have lieen accomplished they have, not rested from their efforts to recover what they have lust, although in fact few of tho wage reductions since the war have signified any loss of purchasing power over commodities. The wage-earners have urged with much vigor that every reduction of wages diminshed their Inlying ami consuming ability, and hence had a depressing effect upon industry, and trade. There is a degree of truth in this theory, hut there are limita-

tions upon its application; otherwise thoie would lie no limit to the prosperity that might lie attained simply by advancing wages, which is more than any sensible person would claim. All students of the subject are agreed it is not money wages that count, hut what the ‘wage-earner finally gets for his money-wages. He would not he benefited by an increase in his nominal pay if hi" Inuial that his pay would Imy no more afterward than before, and this would he the ease if every producer’s pay went tin in the same degree til the same, time and till pinducts and services went up together But when all tin not go up together, some gain at the expense of the others 'file aggregate of purchasing power is not increased, for what is gained by some is lost by tlio others. This is tile weak spot in the argument for high wages as a moans of increasing the purchasing power. It is a valid argument when used against a ro<l net ion of wages hclow the normal balance between wages and products, but not a valid argument when used ill nelialf of a. wage scale above the normal parity with other values. Changes which have the effect of creating unbalanced relations between different branches of industry reduce purchasing power, disturb the regular exchanges, interfere with the distribution and consumption of pindilets and make bad times.