PEACE PROBLEMS.

Otago Witness, Issue 3415, 29 August 1919, Page 21

PEACE PROBLEMS.

MR LLOYD GEORGE'S SPEECH. AN IMPORTANT REVIEW. INDUSTRIAL AND FINANCIAL QUESTIONS. (By Cable.) LONDON, August 18. The Prime Minister in the House of Commons dealt with the country's industrial position. He complained that some people expected industry and production to become normal as soon as the war was over. These people failed to realise the magnitude of the last five years' disturbance. The aggregate direct cost of the war to the world was £40,000,000,000. How could the world return to normal conditions immediately that expenditure was over? It would takj) just as long to adapt the machinery and the workshops of the country to peace tasks as it took to turn them to war purposes. Among the paralysing elements for trade immediately before the war was the fact that contractors were shy of orders owing to the rising prices of materials, of which there was a shortage, while there was also a shortage of labour, and there were transport difficulties. However, there were now 3.500,000 men demobilised, of whom only 250,000 had not been absorbed industrially, so contractors could safely launch out without the ice cracking under them. He described the economic outlook as grave. The slackening of production would lead in the long run to gigantic unemployment and failure to maintain Labour's recent gains. The Government proposed to empower the Board of Trade to prevent dumping and to shield unstable key industries. Mr Lloyd George said he attached great importance to the fostering of Imperial trade by improved means of communication with, the dominions and with India. Mr Lloyd George emphasised the fact that the adverse balance of trade must be faced, because we could not prosper without recovering our international trade—indeed without increasing it. Our adverse balance of trade before the war was £150,000,000; now it was £850,000,000. That chasm must be bridged, because at bottom it was ruin. He reminded the House that there had been an almost sensational decrease in output, which was now less than ever in every branch of production, except agriculture. We were spending more and producing less. Mr Lloyd George, in dealing with the coal question, said that production before the war was 287,000,000 tons annually. This vear, at the present rate of production, the figures would be 200,000.000 tons,, and this despite' the fact that there was a' greater number emploved to-day. A* ton* cost 10s to raise in 1913; to-day it cost 265. That was not only partly responsible for the abnormally high prices over articles, but it handicapped us in other countries where production was cheaper and greater. No tariff could remedy this. WORLD SUFFERING FROM SHELL SHOCK. Mr Lloyd George in the course of his address, emphasised the monetary exchange Mr Lloyd George, in the House of Commons, emphasised the monetary exchange difficulties, the sovereign to-day being worth less than 17s 6d in America, which was due to the fact that we were not paying for our imports with exports. The only alternative to increased production was for people to quit the country. The Prime Minister mentioned that among the reasons for decreased production were the difficulties of transition from war to peace, thelack of labour, also the fact that everybody's nerves were jaded and torn after the strain of war. Everybody was complaining of' everybody else, while some complained of Providence; but these tendencies were world-wide, and would pass. The world was suffering from "shell-shock" on a big scale. One of the arguments in favour of reducing the hours of labour had been that it would not involve a reduction of output. But the fact was that there had been. a reduction of output in almost mathematical proportion to the diminution of hours worked. Deliberate slowing down was no'o confined to the workers; there was evidences of it among employers and managers. He stigmatised as a dangerous fallacy the theory that the less, you worked the more- work there was for everybody. Deliberately to reduce the output meant all-round unemployment on a gigantic scale. The absolute necessity for everybody pulling together must be brought home to the whole country, in order to enable the people to shake off the fatal lethargy and slackness which was depressing production and imperilling the most vital interests of the nation. Mr Lloyd George added : " Labour says; ' We realise the need for increased production, and we do not believe in direct action; but we are human, and cannot work with a will unless conditions are made fairer.' We must," said the Prime Minister, " examine that attitude honestly and squarely, not in a spirit of resentment, but in the spirit, of instice and comradeship created by the war." He appealed to employers and workers to press tKeir claims in that spirit. We must demonstrate to the world Britain's traditional power of solving difficulties without resort to anarchy, and merelv by an appeal to common sense and fair play. He admitted that in the pre-war days hundreds of thousands of able-bodied men worked hard for wages which were a disgrace to the Flag they fought for; but Labour's gains in the past two or three years had been enormous. On an average, wages had more than doubled, and hours had diminished by four per week. The war had taught our soldiers that positions were easier to capture than to retain, and that was the lesson for Labour, who had captured more advanced positions during the war than ever before.

IMPROVED CONDITIONS FOR LABOUR. The Prime Minister then announced that the Joint Industrial Council had come to an agreement regarding hours and wages, which would be embodied in a Bill to be introduced next day. Substantially, the Bill meant a 48-hour week with a few exceptions, and a living wage for all industries. He urged that steps should be taken to humanise industry by seeking the.co-operation of workers regarding conditions of work. The Prime Minister denied that he had committed the Government to accept every recommendation in the Sankey report on the coal industry. However, the Govern ment accepted the policy of State purchase of mineral rights in coal, and proposed that a fund be raised out of the coal royalties to improve housing and provide general amenities for miners. ARGUMENT FOR NATIONALISATION FALSIFIED. v Mr Lloyd George said that the reason advanced for the adoption of Mr Justice Sankey's recommendation in favour of the nationalisation of the coal mines—namely, that it would produce harmony between employers and workers —had been falsified by the recent Yorkshire strike. Again, there were the State-run railways; yet the results had not been harmonious. However, the Government accepted the principle that there was need for the unification and reorganisation of the coal mines in order to re-duce working and management charges. This could be done by dividing the country into areas, of which the labour should' be amalgamated for a limited period. The workers should be represented on the body controlling the policy .of each area. The Government was preparing schemes on these lines. . The Government would take effective measures against dumping. The Board of Trade had been given power to shield unstable industries by prohibiting the importation, except under license, of the products of these industries, thus preventing excessive imports of such products. Where import prices were lower than here an import duty would be charged for the licenses. Care would be taken that no undue profit would be made at the expense of the community. The tests as to whether an industry was unstable would be whether it was essential for the war; whether the war had revealed an inadequate supply of such goods; whether the'Government had to foster it in war time; and whether, if Government support were withdrawn, the industry could maintain itself at the level of production which the war had shown to be essential to the national life. The Government would also submit a scheme for the utilisation of the waterpower of the country for industrial purT3OSGS ABOLISHING TRADE RESTRICTIONS. The Prime Minister emphasised the importance of fostering Imperial trade, not with a view to increasing our trade, but from the important standpoint of Empire and civilisation. He had had several communications from the statesmen of the dominions upon the importance' of fostering Imperial trade by improving the communications between the dominions and the Mother Country, and chiefly in quickening transport. Mr Lloyd George said he hoped peace would be ratified at the Deginning of September. Till then it would be recklessness to reduce the army to a peace footing. The Prime Minister mentioned that the delay in reaching peace with Austria, Bulgaria, and Turkey was owing to the fact that they were waiting to know whether America was prepared to take her share in guaranteeing protection to peoples who, if unprotected, would be subject to terrorism, plunder, and murder. The policy of trade restrictions would definitely terminate on September 1. They had been retained as a shield for industries during demobilisation and the transition from war to peace. The only result of maintaining them after September 1 would be to artificially increase prices, which were already too high. The Government had received appeals from all quarters, including the Conference Internationale at Lucerne, not to withdraw bi\r troops from the Caucasus. The inhabitants there, also, had appealed to the enme effect—a fact of which he was proud. There were also other places from which "we could not withdraw all our troops at present, but he promised that the Army Estimates would be examined on the basis that the great menace to Europe had ended: hence a considerable reduction would be effected. Thev must remember, however, that soldiers' nav had trebled, and the cost of material had doubled. The greatest economy could be effected if the great nations which had promoted the League of Nations trusted it. But if they increased armaments the league was a sham. Those who believed in it most must trust it. Britain was ready to trust it: let others do likewise. Referring to attacks on the Government, he asked: Was it -wise, fair, or generous, when all system of government were being challenged.' to give Democracy the impres'sion that the Government was guilty of nothing but mistakes, scandals, and inefficiency, putting nothing to the credit side? The Prime Minister concluded by declaring that " With a clear eye, a steady hand,^and a willing heart, the ship of ~State will reach calmer water." NEED FOR DRASTIC ECONOMY. LONDON. August 18. In the House of Commons Mr W. Adamson, Leader of the Labour Party, following Mr Lloyd George, said that although it was now nine months since the armistice there was no sisjn of returninsr to normal conditions. If it was true that the Government had. sold 161 ships to foreign countries, it was a foolish transaction, which would cripple the efforts to restore the financial position. The Labour Party agreed that there was a necessity for increased production. This could not be achieved without scrapping much existing machinery in industries and also without

I the employment of machines hitherto not used. The country would not tolerate the Government spending money at the present rate. He urged Mr Lloyd George to drastically cut down the Estimates for the Navy, Army, and Civil Service, and he Eressed the Government to make the Proteering Bill retrospective, thereby recovering £1,000,000,000 from the profiteers. Lord Robert Cecil said he regretted that Mr Lloyd George had postponed his industrial statement till the last day of the session, thus permitting the minimum of debate. He deprecated the withdrawal of British] troops from the Caucasus, thus allowing the continuance of massacres of Armenians, who should have immediate help. OUTSIDE CRITICISM. , LONDON, August 18. The newspapers reflect a certain amount ■ of disappointment at the Prime Minister's speech, mainly as a result of unauthorised anticipations; but in general there is approval, except on controversial topics like the nationalisation of coal mines. During the debate Mr Hartshorn asserted; that Mr Bonar Law promised to accept nationalisation of the mines if the commission favoured such a step. Mr Hartshorn added that he would do nothing to render" the Prime Minister's scheme a success. Tlie Government's policy would considerably reduce the output instead of increasing it. Mr Bonar Law denied giving the nationalisation pledge. Such a/hing had never been suggested. Mr Hartshorn, interviewed later, said that every miners' leader who previously was disposed to assist the Government would now do his utmost to overthrow it. Other miners' officials were equally angry. Mr Adamson said the Labour Party wouH make nationalisation of the mines and railways one of the tests questions at the ! general election. ! Members of the Commons generally accept the solution. Opponents of State control anticipate practical difficulties, but regard it as the best compromise. ; August 19. - j Though there was little reason for expecting a declaration of the Government's Irish policy, regret is expressed at the absence of a statement on the matter in the Prime Minister's speech. POLICY" REGARDING TRADE AND INDUSTRY. LONDON, August 21. The Prime Minister, prior to his departure on a holidav in France, took the unusual course of issuing a full summary of his recent speech on the Government's , policy, regarding trade, industry, and I labour, because "the policy had been I obscured by discussion on one or two, j highly controversial points, which, though important, bear only upon a small portion of the Government s programme." Mr Lloyd George also mentions fresh proposals, not previously mentioned, and says if the committee of the National Industrial Conference fails to agree on the unemployment question, the Government may make proposals in the name of the community. The Government will immediately establish a committee to inquire into the diminution of the coal output. The Government is also taking steps to increase general efficiency by extending technical education for managers and workers, and encouraging research. An Inventions Department will be established to encourage standardisation in the British industry. A commission was now considering minimum prices of agricultural products for 1920, but delay was probable. The Government will, "therefore, undertake to continue the existing rates for 12 months. | Legislation will be introduced in the autumn to combat the harmful effects of I trusts and combinations. KEY .INDUSTRIES. LONDON, August 22. Mr Lloyd George's summary of the : Government policy in dealing with unstable key industries defines them as fulfilling the following tests : —Produce essential for war or the maintenance of the country during the war; an industry so neglected before the Avar that there was an inadequate supply of produce; an industry about which the Government found it necessary to take special steps during the war; an industry which, if special Government support were withdrawn, could not maintain itself at a level of produc- ; tion essential to the national life. ! It is proposed that the fees charged for the issue of licenses to import goods produced by such unstable industries shall be * fixed with regard to each case to the difference between the price at which the article can be imported and the price at which similar articles can be sold in the United Kingdom. Mr Lloyd George stated : that it might be necessary for some years I that the Government should continue to assist such industries. MINIMUM WAGE BILL. LONDON, August 19. The Minimum Wage Bill, to which Mr Lloyd George referred in his speech, creates a commission to inquire into the cost of living, minimum wages, and hours of employment. The Bill provides for a maximum of 48 working hours weekly, except in such cases where the Industrial Councils may recommend otherwise, or when the employers and workers agree mutually. Payment for overtime must be 25 per cent, higher than the normal rate. The Bill does not apply to domestic serl vants, seamen, or land workers. PREVENTING DUMPING. LONDON, August 23. In reference to Mr Lloyd George's statement in Parliament on the subject of the trade policy, the Board of Trade announces that legislation will be introduced in the autumn to protect goods manufactured in Britain and Ireland against dumping. This will be done by

taking power to prevent the sales in this country of similar goods beneath their price in the country of origin, and will enable the Board of Trade to check any flood of imports that might arise from a collapse in the rate of exchange with other countries. PREFERENTIAL RATES. LONDON, August 21. The Customs Department has published details of the method of obtaining preferential rates on duties on products of the Empire, commencing on September 1, whether from bonded stocks or directly on importation. Importers must produce a certificate of the origin of the goods from the manufacturer or grower and also from the exporter. Preferential duties can be claimed only on manufactured articles if 25 per cent, of their cost is due to labour within the Empire, except in the case of tobacco and sugar, of which this portion of the cost has been fixed at 5 per cent.