THE PRICE OF LABOUR.

Otago Witness, Issue 904, 27 March 1869, Page 1

THE PRICE OF LABOUR.

The question raised by the employers of labour in. this colony with regard to the rate of wages, is one of very general interest. Their complaints are not ipptiasosatye ; but their argunieHts #6

I not always supported by very accurate reasoning. It has been lately argued, for instance, that the rate of wages here bears no proportion to the rate of profits, and that therefore it ought to be reduced until such a proportion is arrived at. In the mother country, it is iirged, a fall in profits is invariably attended by a fall in wages ; and a similar result ought to take place here. The fallacy of this reasoning is transparent. If the rate of wages were fixed by a Court of Conscience, labourers would never be allowed to demand high wages when employers were unable to make high profits. But the rate of wages depends on natural laws, with which conscience has nothing whatever to do. In the first place, the circumstances which decide the rate of wages in Europe bear no analogy to the circumstances which decide it in the colonies. In the one, there is unlimited competition in the labour market, while in the other there is comparatively little. These are the conditions which determine the rate of wages. As to the rate of profits, it is evident that, while in Europe it must materially affect the rate of wages, it cannot affect wages in the same degree or to the same extent in the colonies. That is the great misfortune of our employ el's. Whatever the state of the markets may be, it can make little difference to them in the matter of wages. A fall in wool in London does not necessitate a fall in wa^es in Ocajjo : simply because it does not affect the state of the labour market in the slightest degree. If the profits of the runholder are 50 per cent, less now than they were three years ago, it may seem unreasonable that he should be compelled to pay the same wages to his labourers. But to whatever extent his profits may be lessened, he can hope for no relief, so far as the question of wages is concerned, until labourers become far more 'plentiful than, they are.

A still greater fallacy consists in the idea — rather implied than asserted — that the high rate of wages complained of is owing to an unrighteous combination on the part of the labourers. The labourers have no more to do with fixing the rate of wages than the employers. If it were otherwise, the two classes would be in constant hostility — the one endeavouring to raise wages, and the other endeavouring to lower them. That result is witnessed only in the case of Trades Unions, or other associations of the kind formed for the express purpose of regulating; the price of labour. The employers ; who complain most loudly are fanners and runholders, and perhaps they have most reason to complain loudly. There is no combination on the part of farm and station hands to maintain the rate of wages at an artificial figure. It i.s consequently absurd to address them in the tone of remonstrance, as is sometimes done. It is useless to point out to them that profits are no longer what they used to be — that wool is falling and oats are falling — that a collapse must come unless there is a reduction of wages, and where will the labourer be then I No doubt if the labourer would consent to a reduction, it would benefit himself eventually. A collapse would deprive him of employment, or compel him to accept a much lower rate of wages than he would fancy ; while a timely reduction would tend to avert such a calamity. But -we cannot complain of the labourer who refuses to listen to such an argument, or accuse him of ruining the country by his obstinacy ; any more than -we should speak in the same terms of the employer who refused to accept a lower rate of profits for the sake of doing good to other people. It is very possible, moreover, as a correspondent has hinted, that a lower rate of wages would be morally beneficial to the labourer, by teaching him the value of mtfaffy as well as the foljy of dissipatipn. I

But the moral benefit of the labourer is a matter for his own consideration entirely.

; There can be no doubt that the rate I of wages in Otago especially is higher than it ought to be ; and there can be no doubt too that if it could be reduced hj legitimate means, the employer would be all the better and the labourer none the worse. At the first view, it might be pronounced a monstrous violation of the fitness of things that wages in Otago should be at least 20 per cent, higher than they are in Victoria. There is no self-evident reason why a bad domestic servant in the one place should cost £35 a year, while a good one may be got in the other for £25. But a moment's enquiry will satisfy any one that such a state of things is simply the inevitable result of existing circumstances. To remedy the evil we must remove the cause ; and that may be done without much difficulty. Immigration must be promoted in the first instance ; and in the second, all artificial restrictions which tend to increase the cost of living must be swept away. The rate of wages can never be low in young countries where the price of necessaries is high. Money is merely an equivalent for necessaries; and in fixing the money value of labour, regard musb of course be had to their prices. There is no reason why the actual necessaries of life should cost more in this colony than they do in Australia. The operation of the tariff renders prices, in some respects, higher than they ought to be, and there can be no doubt as to the necessity of remodelling it, A laudable and not unsuccessful attempt has recently been made to reduce the price of meat. Such an example should be followed out in other directions as far as possible. When that is done, all classes will be benefited by the change ; and the labourer, who will be benefited most, will not suffer by the reduction in his wages which such a change would involve.