AMERICA’S PROSPERITY.

Timaru Herald, Volume CXXIII, 15 December 1925, Page 11

AMERICA’S PROSPERITY.

SEASONS FOR IT BIG PAY, HARD WORK, LOW PRICES. Colonel Vernon. Willey, president of the Federation of ; British Industries, has given the impressions ho has gath‘ered during his official trip through the United States. Tiro contrast which he draws botween the industrial spirit of the United States and Great Britain is startling. His conversations with prominent manufacturers and bankers in different American centres disclose a belief that the United States will have a period of continued and ever increasing prosperity, “Never,’’ he say 9, “in 18 years of intimate business experience with the States, with the single exception of a hr.of period following Mr Taft’s election in 1908,‘ do I remember such a chorus of accord that the stage is set lor prosperous times.” His reports show that employment is available for all in the United States at high wages. Yet the general level of the prices of commodities, as shown by official index figures, has been immensely reduced from their high peak. How is this done? Col. Willey’s answer to this question should give pause to overy Englishman, workman as well as employer. Ho finds it is done by a progressively rod need cost of production per unit on all articles. t

HARD WORK AND HIGH WAGES. This, ho emphasises, is made possible by greater efficiency and increased output. Everyone and everything is speeding up. Employers are getting huger net earnings m spite ot narrower margins, per unit, because output is greater. Employers are profiting from the larger turnover and the workmen, by tho higher earnings—from a lower percentage of cost to turnover combined with higher earnings on the same pricerates. Tho result is a lower cost of tho article to tho consumer and more wages to the worker with which to buy it. Hence tho steadily expanding trade and prosperity for all. On every' side, Col. Willey finds a determination to keep prices down. This increased efficiency—less crew for the performance of any task with more pay' for tho remainder—explains why prices generally in the States have not risen more in spite of the' immense gold imports and favourable trade balances: ( The spirit of the country he describes I as admirable. Relations between em- ! plovers and workers are good. On ! either side there is tho belief that the j other is giving a square deal.

! On one sido there is no restriction of output; on the other there is no lack of confidence. tVc see in America the greatest prosperity to the hardest worker. The pace is set by the most skilful worker, with the rest striving to keep up with him. The watchword is. “Service-to the community and more spending power for the worker.” By comparison with European standaids, tho workers’ earnings are unbeliovably high. Yet American products are competing successfully in Europe’s markets in increasing volume, as her great export show. As an example of tho spirit of service and of good relations, the U.S. Secretary of Labour presented Colonel tViilev with a report he had just received from a small town in the anthracite (liartl coal) district, whore, all miners have ceased work. The, “boys” on strike had got together, and, for something to do, had decided to clean tho town. They had painted rise church, repaired fencing, and painted : tho railway station and other bui'dings as a voluntary service to tho community.

UNION’S NON-UNION MEN Another striking sidelight on the spirit of tiio country wss furnished by the American locomotive engineers. They lm-ve one of the wealthiest, and soundest trade unions in the country, with large accumulated funds. To-day, jas an investment, they are operating a jeoal mine in West Virginia, but are mI listing on non-union men being emtjp'oyod. | (hi. Willey contrasts-this spirit with | that prevailing in Britain. London messages to the United [States Press are full of depressing stories of rhe demoralising cl ieots of doles, subsidies and strikes. Captains of .American industry, returning from Britain to the United Slates, emphasise these evils. Their | talk is all of Britain's, out-of-date j planks, of her ’ uiiprogre.-.sivo selling I methods on the one hand, and of her j trade, unions rc.-Ariclimi' no {.he other. ! All these things eon,iiire to proIduee (.lie worst kind of impression on | the average mind. Investors. :ls a obnI sequence, arc deterred from parficipatI ing in loan, while buver.s ask qunta- ! i-iotis from other countries boost use they ! hel'eve cost in Britain, under such eon- j |d't ; ous must he too high. So trade! pisfcps Britain. > This is illustrated hv the action of the president, of one of the largest! | American mail-order houses which dis- ; tributes all classes of mendmndi.se. He! he.s just returned from Europe, and has lan nor. need Ids European tm-ir'.- !-•>•,,- g'-amrne. amnimthig to -COCK) 01)0. But of this huge *of a! only Aid.ooo was -Am rod Ir> Bptain. Col. Willev onotes the e •nolmdnr! i pi-i v n hv a member of +he A meric u A dviinistrnf.ioii reeenilv in Britain. No TTimher of workers' ronrosont-tives in j P'-'anmont, snvs tin' etato-m," p. can > —case the amount. : n tb« '• orke v s’ , c--n-vidones. and lvs rdv’oo is : ( “V--p pel.tics alone I'-ecoerity can , only come from hard work.” ,