The Waikato Times With which is incorporated The Walkato Argus. MONDAY, JANUARY 19, 1920. THE FAULT AND THE REMEDY.

Waikato Times, Volume 92, Issue 14267, 19 January 1920, Page 4

The Waikato Times With which is incorporated The Walkato Argus. MONDAY, JANUARY 19, 1920. THE FAULT AND THE REMEDY.

Even the unbiassed political critic will find good reason to cavil at the actions and inaction of Governments, yet the political critic is indispensable in any State and a natural product of social evolution. In this country Ave are face to face with one of the most intricate problems that has ever been placed before a Legislature, and in the solution of ii we find we arc handicapped in not having amongst us, in or out of Parliament, a great political economist. The times have not made for the development of such a one, for our politicians, mostly the graduates of local bodies, where the syllabus is good though extremely limited, have greatly confined themeslves so far to local politics, or legislative processes that rank but little higher. It is not then remarkable that Parliament is nonplussed to determine what action is necessary to reconcile the cost of production, the cost of labour and the prices of marketed commodities. Clearly there can be no social contentment until we arrive, as nearly as possible, at a reconciliation. The shallow economist who solves off-hand the great difficulty in regard to the cost of living by laying it at the door of Labour is not worth discussing. Anyone who has a scintilla of justice in his nature and is non-partisan, does not fail to realise the terrible difference between the retail prices of commodities and the cost of their production. We in New Zealand are not a manufacturing .people, but producers of primary products. The increased cost of production in regard to the latter is admitted, and generally accounted for, but is it for one moment contended that the labour-cost of production in countries from which we draw our supplies warrants the famine prices we are compelled to pay? Our political aspirants and amateur economists must go somewhat deeper into the matter. We look to the Government as the representative of all classes for some weighty utterances on the cause: we are sufficiently acquainted with effect. It is not sufficient to say that the problem is a very difficult one to deal with, that the best intellects of the day are engaged upon it, and that a Hoard of Trade lias been set up to regulate prices, for the Board merely regulates them from high to higher. After all, is it sufficient for suppliers to say that a certain commodity is scarce in order that they may justify themselves in exacting the last fraction i>f extreme profit? There was such a statute enacted as the Fair Bent Bill. Is there no possibility of a Fair Profits Bill coming into operation? No extra demand for land ever made the former inoperative, and no scarcity of merchandise justifies exploitation such as that which has victimised Hie community. It just amounts to this—the time for Parliamentary achievement is past. Parliament is clearly and confessedly impotent, and it js necessary that the public should develop a great constructive mind (for the public is comparatively free for reflection, research, and concentrated though!), which may lead to some happy solution. Democracy implies self-reliance, and the

people may give Parliament a lead—in fact some people fancy Ihey have already discovered the solution in embryo, and that the name of it us "Co-operation.*' "We here are fortunately acquainted wi{h ro-ope.ration in a very extended

form, and it is most pleasing to dwell Jon the success that• -has attended its

c(Torts. We read in the annual report of a great co-operative concern that the directors are pleased because the profits in the store ijepartment only amount to a small percentage, and the shareholders have had the benefit of wholesale prices; but after we get to know the inner meaning of co-opera-tion and are in a position to compliment shareholder and director alike on having effected a certain saving, we are forced to recognise a slight palliative, but in no sense a remedy. We cannot fail lo feel intense admiration for the prevision, insight and co-ordinating power evidenced in the formation of mighty world-dominating trusts and combines, for in them, and for them, the master minds have been at work. reducing to an almost, irreducible minimum the cost of production, purchase, distribution, transport and marketing The history of the formation and rise of combines, shipping rings, trusts, and all such combinations of organised capital arg interesting and instructive as demonstrating how organisation and management reduces working cost a.»d increases profit: The pity of it is that these great powers arc associated not for national advancement, but for national exploitation. Still, we have 10 consider another aspect of the question and face the fact that the gre.it commercial intellects are necessary :.i Britain, for she has to meet world competition successfully or go under. Tnis is what leads Lord In'chcape to complain of the attempted nationalisation of shipping. He began life in a shipping company's office, and it is improbable that he would' have been singled out for Royal favour were his talents not recognised as of Imperial oons.-,-quence. Such' men do not work for personal gain, and, it is probable that they give little thought to the accumulations of wealth resulting from thek efforts; they are "immersed in their jobs." After all, the British companies trading to our shores only show a profit of from 6 to 15 per cent. Against this a foreign company trading from Japan to Australia (the Japanese Mail Steamship Co.) declared a dividend and bonus of 100 per cent., amounting to just £IOO,OOO short of £3,000,000, on last year's profits. This leads to wonder as to how nationalised shipping would fare in such competition on the open seas. Clearly' there is much to be said in debate before' fiction is taken, and we earnestly- desire the subject should be debated'' in" : 'imperial Councils. Granted that our greatest maritime minds arc up against difficult problems and IfMt without their aid Britain would soon,become an inferior sea Power, there is nothing to be said in. favour of the great-OH "trusts or the Coates' cotton'.mu.npi>ply,';'\vhich, after paying war profits; tax,' cleared four millions of money. The iniquity of such a company lies in this,'that by an elaborate system; of discounts it penalises any retailer who sells' under their fixed price-. ''The woollen manufacturers of Britain now- stand in. fear of the tremendous profits they are making, and we winder why prices are still mounting up: Some instances of so-called profiteering have-been brought under the notice of the community. Those were nothing more formidable than somewhat isolated instances of petty theft. '.There is a great gulf between the manufacturer and the retailer, but the go'ifl is "on,' the "other side.