The Waikato Times. With which is incorporated The Waikato Argus. SATURDAY, MAY 15, 1920. THE ECONOMIC OUTLOOK

Waikato Times, Volume 92, Issue 14364, 15 May 1920, Page 4

The Waikato Times. With which is incorporated The Waikato Argus. SATURDAY, MAY 15, 1920. THE ECONOMIC OUTLOOK

No accurate estimate can ever be formed of the loss of productive energy and wealth occasioned by the war. A French writer lias, however, put together some startling statistics concerning some of the losses the world has experienced as the result of the five years' hostilities in Europe. He estimates that the war has added twelve thousand million francs to the debt of the belligerent States, that it has decreased the world's output of iron by 1.i0.000,000 quintals (a quintal being 2201 b; the world's wheat crops by 323,000,000 quintals, and the world's output of coal by 2,1 .".0,100,000 quintals. Me further estimates that it reduced the sugar crops in 1919, as compared witli 1918, by (3,250,000 quintals, and the American cotton crops by 8,300,000 quintals. The ioss on these five essentials alone is appalling, because it not only marks actual loss of wealth, but is responsible for the very marked rises that have taken place in the price of all these commodities, with a consequent further reduction of the available wealth of the worid. The loss in the coal output is probably the most serious of all, for so many industries are dependent upon it that it has come to be regarded as the very life of the industrial world. Coal production in France has fallen off by 32 per cent., in Great Britain by 32 ;jer cent., in Germany by 23 per cent., in Belgium by 22 per cent., and in by 21 per cent. These figures, it will be noted, take no count of lhe falling off in other parts of the world, neither ' the United States nor Australasia being included, and in both there has been a very marked reduction in output. In Australia alone, us a result of strikes and the "go-slow" policy adopted by the miners, there was a 'oss oi over v i 1,000,000 tons during the war period, the monetary loss being over £5,000,000, calculated at Jhe value of the coal at lhe pit mouth. The miners alone lost, on an average, £IOO per man, or 13s per week each, as a result of strikes during the war period, the aggregate loss to the community being £2,000,000 in moneys which would ha>'e been put into circulation by the miners. The positon in .New Zealand (as a contemporary points out), though .lot quite so serious, is bad enough, because large sums of money have had to be sent out of the country for coal supples which should have been available locally, and the miners have impoverished themselves by their "go-slow" action, besides penalising the public. It cannot be too often repeated, in limes such as tiiese, that the only method of recovering the leeway, lost during the war, is by increasing, rather than reducing, production. If lhe country is to maintain its wonted prosperity, and regain the favourable position it occupied in pre-war day.-;, increased production is vitally necessary—is, indeed, absolutely essential lo the attainment of that position. There is no need to belabour the point, because it must be apparent to every one who gives the matter a moment's consideration. There are world-wide shortages of practically every commodity in general use. The failure of the Indian crops has resulted in a loss of over a million tons of rice; the failure of the Queensland sugar crop is responsible for a loss of over 100,000 tons of sugar; Lhe failure of the wheat crops in certain Australian States makes it very improb-

able that there will be any exportable surplus this year; the drought was responsible for much morlility both in sheep and cattle, and, m practically every branch of primary production in Australia there have been heavy losses, which are reflected in lhe greatly increased prices at which the remaining stocks are offered. There ha* been i heavy falling off in production in this country also, but that is offset—to a certain extent—by the enhanced prices our primary products command in the world's markets. At the same time we have, in certain respects, Ij face an even more serious position than Australia. Our wheat production has fallen off to such an extent that we must call upon outside markets to make good tha shortage. We can, moreover, only meet the increased charges which must be paid for almost everything we require from outside countries by increasing production and by economising in every possible direction. The less we call upon the outer world fop things we cannot produce, or manufacture ourselves, the better it will be for our credit, abroad. The exchange rates are all against us; more especially in the American markets, and the fewev dealings we have with America, under present . conditions, the better it will be for ourselves. The silver dollar is all powerful these days, and it can only dc

offset by exportable prodjcts that are in demand in America, the salo of which would establish credits wltii the Wall Street financiers, who to-day are gripping tlie world's money markets, that could be used for such absolutely necessary purchases as arc required by New Zealanders. While New Zealand produce continues to command high prices in the Home and European markets, and there is very little likelihood of a fall in sucli prices, the lessened volume of production noticeable in the statistical returns is a very serious matter, and one whiefi needs attention at the ham!; of the authorities, as indeed of the farmers and producers themselves. It is further a matter of grave concern to the workers, the wages fund being so largely dependent, upon production and manufactures. The demands Cnat, are being continually made for higher wages, -and shorter hours of labour, cannot be logicaly conceded unless th; workers make good the shortages in output that are characteristic of almost every industry to-day. The only outlet from the existing difficulties that confront the State is by way of increased production. The lost wealth and the wasted years must be made good as far as possible. That certainly cannot be accomplished by lessened effort, nor by "go-slow" methods. Demands arc being made in certain quarters in Australia for a five-day week. However desirable such a relaxation of effort may appear to the workers,,who are putting forward the claim to such further relaxation from toil, the time for preferring- such a demand is both inopportune and unfortunate, and it is to be hopel simlar demands will not be pressed here. Most certainly they could never be conceded by the primary producers, ' who have to regulate their doings very much in accordance'with the weather. The dairy farmer, indeed, sannot escape a seven-day week; the life of his business is dependent upon the regularity of his milking operations. Tradesmen are of course in a different category, but who, knowing the demand for labour, and the absolute necessity for labour at its best, to meet the existing shortages in almost every direction, would say that a reduction of effort can help cither the worker or the State in making good the ravages of war, and in reducing the burdens it has -mposed upon the public in the shape of the increased cost of living?