LIMITATION OF OUTPUT

Otago Daily Times, Issue 19014, 9 November 1923, Page 5

LIMITATION OF OUTPUT

CAUSE OF BRITAIN’S TRADE DEPRESSION. EMINENT BANKER’S REMEDY. Press Association—By Telegraph—Copyrignt LONDON, November 7. (Received Nov. 8, at 5.5 p.m.) Sir -Herbert Hembling, of Barclay’s Bank, in his presidential address to the Institute of Bankers, said: “We are losing much trade because of the European situation, which is outside our control, but we are losing much more as the result of our high costs of production, which are within our control. One remedy would he lower wages, out this would be very undesirable; indeed, a reduction in wages does not necessarily mean lower costs of production. Higher wages in some cases are more likely to be effective. The better way is to increase production by greater efficiency and increased output by the workers. The heresy in favour of limiting the output is not confined to labour. Many trade combinations appear to have been formed almost exclusively, not In order to organise mass production, but to restrict production and to prevent what the manufacturers consider undesirable competition. If labour removed all the restrictions on output, and the capitalists aimed at a small profit on a large output. Britain would increase her overseas trade and cure unemployment.”—A. and N.Z. Cable.