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Taranaki Herald, Volume LXVIII, Issue 16762, 11 June 1920, Page 2

The proposed adoption of tho guild system in Britain in connection with the building of houses, which was referred to in a recent cablegram, is a very-, interesting development. Many workers object to tho capitalist system and tho obvious course for them to take i. to prove that there is no need for tho capitalist by associating themselves to conduct industrial operations for themselves. There is, for example, no reason why a number of coal minors should not join to carry on a mine, either paying salaries to managers and the necessary business staff, providing them from tlioir own numbers, or semiring men of similar views to themselves to join in forming a guild to run tho mine. Similarly in the building

trade, the tradesmen generally employed could form a guild and accept contracts to build houses for themselves or others. If tho unions chose to take the matter up there need by no difficulty about finance, but if the men had no support from, outside they would have to begin in a small way and gradually enlarge their operations. Energetic men would 1 find no real difficulty in making a_ start and would undoubtedly meet with sympathy and support from the general public. At present, though the Labour Party regard tho guild system as the ideal one which is to replace ouv existing capitalist methods of production, tho union leaders in this countrj t!<> nob apparently favour any departure in the direction referred to in thojcablegram. • Mon working in a guild would to some. extent he outside union control, and this is regarded a- 1 objectionable. They might also, secure profits from contracts which would put thorn in a hotter position than other workers. To the .outsider it seems that the experience gained by small guilds would be invaluable as a preparation for the general extension of the*system. This, however, seems to be unacceptable, the view being that a universal change, or none at all. must be made. Tho arguments for this may be stronger than appear on the surface, but to most people it seems probable that a gradual change would bo more likely to produce good results than one of a-revolutionary character.

Following up what wo have written fir former issues about tho Co-operative Wholesale Society’s proposal with regard to the disposal of Non- Zealand dairy produce, there is a feature which we nave not dealt with. Co-operative societies in the United Kingdom have a distinct advantage over private traders with whom they are in competition in that they arc not called upon to pay income-tax. This is an advantage they may not long retain, for a Royal Commission on income Tax reported three months ago recommending, in effect, that a co-operative society should ho treated exactly as a limited liability company trading in similar circumstances and under similar conditions, and suggesting an amendment of tho existing Jaw in so far as it confers special exemption on co-operative societies. Tlie point is of some importance to New Zealand producers at a time when they are being invited to place tlieir business in the bands or the Cooperative Wholesale Society. The society claims to have special distributing facilities and- to eliminate middlemen’s Xirofits. Yet with those advantages it lias been unable to handle New Zealand produce because its competitors in Tooley Street have outbid it. Hitherto it has had the additional advantage of exemption fiom income tax, whicli tho Tooley Street people have had to pay. The point is, then, that if this latter advantage, is to be taken away the Cooperative AVholesale Society is less likely than ever to be able to compete with Tooley Street in the purchase of New Zealand cheese or butter. The producers should, therefore, hesitate befor’o committing themselves to a scheme one of whose objects is to crush the Tooley Street competition cud enable, the members. of co-operativo societies and trades unions in the United Kingdom to buy their butter and cheese at lower rates than at present. It is impossible to reconcile the perfectly natural desire of the New Zealand producer to obtain the best nossible price for his butter and cheese with the avowed object of the Co-operative ’Wholesale Society to furnish its members with supplies at the lowest possible prices.