HIGH WAGES

Wanganui Chronicle, Volume LXXXIII, Issue 19784, 7 March 1927, Page 7

HIGH WAGES

PROSPERITY FOLLOWS LESSONS FROM AMERICA NO RESTRICTION ON OUTPUT INCREASED PURCHASING POWER [By Telegraph—Per Press Assn.—Copyright.] Received March 7,2 am. VANCOUVER, March 6. The Australian industrial mission was heartily welcomed at Seattle, where, at a luncheon tendered by the Chamber of Commerce, Mr W. M. Short, the president of the Washington State Federation of Labour, in the course bf a speech, said American Labour always recognised that the chief problem was the equitable division of production of industry, and not the restriction of output. The higher the earning power of the worker, he said, the larger his share of prosperity. “We never shared the policy of go-slow, based on fear of over-production and resulting in unemployment,” he declared. The problem to be faced was not over-production, but consumption. As they increased the earning power to the workers likewise they increased their purchasing power ,but business leaders took time to realise the wisdom of that policy. No Return to Old Standards. The two chief addresses at the last national convention of chambers of commerce were based upon the importance of high wages on general prosperity. The Federation in 1920 opposed the post-war slogan “Back to normal,” on which a presidential campaign was won. The Federation’s policy was that it was better to resist and lose than not to resist at all. It would have meant industrial and business stagnation. Later industrial leaders supported the Federation’s views. It would be a falacy to revert to the 1914 standards, which the slogan meant, as was . proved by countries which endeavoured to return to normal. Those who cluag to the 1924 standards have progressed unretarded. He advised the mission not to visit all the American industries, as numerous American employers had not accepted the doctrine of high wages, but they were gradually coming into line, as the nation was definitely committed to that policy, high wages being real wages, increasing purchasing power and controlling the power of America. The Australians were mistaken in accepting compulsory arbitration and permitting politics to control the economic questions and conditions of the workers. Mutual Action. The only effective machinery to deal with such matters was economic machinery mutually agreed upon and established between employer and employee. Machinery for settling indusrial disputes must be on the job when problems arose. “If the mission finds a plan to replace class hatred,” he said, “with mutual co-operation aiming at equitable division of production, you will fulfill your purpose. Dig deeply into American industry, and you will find this plan being generally adopted, governed by voluntary organisations of workers and employers. High wages standards are responsible for the prosperity of America, ’ ’