The Daily News MONDAY, AUGUST 19? 1929. BRITISH COTTON CRISIS.

Taranaki Daily News, 19 August 1929, Page 8

The Daily News MONDAY, AUGUST 19? 1929. BRITISH COTTON CRISIS.

It is no exaggeration to say that the news of a settlement in the British cotton industry will be greeted with relief by New Zealand as well as by other parts of the Empire. Though in essence a domestic problem of the United Kingdom, the repercussions of any interference with a staple industry extend far beyond the local consequences, serious as they may prove. Although the actual terms of settlement have not yet been reached, the principle of arbitration has been agreed to by both parties to the dispute. Two representatives of each side, with 'an independent chairman, are to investigate the position and decide whether a reduction of wages is essential in the interests not only of the manufacturers but also of their employees. The mill-owners claim that if by a reduction in wages working expenses can be reduced it will enable goods to be offered at prices that will compete with foreign competition. Assuming such is the case, the increased orders .would mean more employment for the operatives, who, in the long run, would earn more than at present. Better full-time earning at a slightly lower wage than' part-time work at a nominally higher rate of pay was the employers’ contention. Against this the employees maintained that the reduction in overhead costs should be sought in other directions. They asserted that the industry was over-capi-talised in many instances, and that obsolete plants were often the reason for low earning capacity at certain factories. When the possibility of a cessation of work became evident the Government appointed a committee to investigate the position in regard to the industry generally, and made efforts to avoid a rupture between masters and men pending its findings. These efforts proved unavailing, but the work of the committee has proceeded in the meantime, and it is satisfactory to note that the arbitration agreed upon is to work with this committee. The information it has already obtained should prove of value to the arbitrators as coming from an entirely dispassionate source, and one concerned solely with the benefit of the industry as a whole. The pity of it all seems that the course

now decided.jipon could not have been agreed to before the hold up of the industry took place. However brief, a stoppage is always a handicap to recovery, and affords an opportunity to trade rivals they are quick to profit by. So far as New Zealand is concerned interference with the earning powers of a densely, populated portion of Great Britain is always of grave moment. In the cotton districts the population is denser than in any outside the London County area, and the potential market for Dominion products is of the utmost importance. Apart from this there are many reasons, financial and otherwise, which make the prosperity of the Homeland of direct importance to New Zealand. The fact that operations are to recommence without waiting for the result of the arbitration is proof that both parties are approaching it in the right spirit, alid that each is convinced that his ease is sound. When a problem is approached in such a commonsense fashion its solution is not far off.