The Waikato Times With which is Incorporated The Weikato Argus. MONDAY, DECEMBER 6, 1920. TRADE AND FINANCE

Waikato Times, Volume 93, Issue 14535, 6 December 1920, Page 4

The Waikato Times With which is Incorporated The Weikato Argus. MONDAY, DECEMBER 6, 1920. TRADE AND FINANCE

Economic developments in the various countries are becoming more and more interesting as the world travels toward the normal conditions which are the accompaniment of peace. There is, of course, a large element of uncertainty in the situation, but everything points to a lower level of prices. The Food Controller sees'in the fall in wheat prices "the commencement of a real change in the economic situation," while "the general decline in the wholesale prices of commodities is regarded as a most encouraging sign in the business world." At the same time it is doubtful whether, if the production of commodities is curtailed, future prices will represent the true economic cost. For jnstance, it is expected that a large number of steamers will be laid up, and /this at a time when freights are abnormally' high. The reason for the step is that it is cheaper to lay them up than to run them. The continued increases in wages have doubtless added very materially to the cost of running ships, and the question will very shortly arise whether it is wise national policy to make wages costs so prohibitive as to curtail industry and multiply unemployment or to promote trade and increase national prosperity. The only means b„, which real wages can be increased is by adding to the national product. The lessened output of coal increases

the price to the worker as a consumer and places an additional handicap ofl the industry from which lie wins his livelihood. He is, therefore, handicapped at two points. So it is, unfortunately, in ixany other fields of industry. There are certain definite obstacles in the way of a return to ideal conditions. The channels of trade are not yet free of the entanglements arising from the war, and the sickness of unrest is not yet past. A new world was expected to follow the war, but many people forgot that the new world has to be made, and further that effort must be expended in its creation. The Monthly Review issued by Barclay's Bank, Ltd., quotes the following "significant passage" from one of the pamphlets issued by the League of Nations in connection with the International Conference from the pen of Professor Gide: —"It must however, be remarked that all the financial and economic solutions are contingent upon the resumption of work in Europe, and that this resumption will only take place if some satisfaction can be given to the aspirations oi the working class, which aspirations are difficult to realise and which they themselves cannot define. Workpeople in every country are suffering from profound unrest, which seems to be founded upon a fallacy. They have been so constantly assured during the war that they would see the birth of a new world that they are, naturally, irritated to find to-day that nothing has changed (except a rise in wages which is insufficient to compensate for the increased cost of living), and that they must endure the same wage slavery as before." Certain fallacies die hard, and the lesson of facts must be learned. Reduced production can solve no problems and relieve no necessities. The national dividend can only be increased by adding something to the fund from which that dividend is paid. An increasing measure of co-operation between all for the common good of all 'is the clamant need of all. "The one fatal attitude," says the Review already quoted, "whether adopted by 'Labour' or 'Capital,' is the altogether unsocial contention —we will not produce if you are to share in the results of our labour. Such a position is a reversion to barbarism, and conditions in En;#!id and every other land can only be> substantially improved when it is realised, to adopt the phrase of Mr Graham Wallas, that the human race is a Great Society working together for the mutual good of all." So it is necessary in the realms of trade, finance, and labour to cultivate and foster the human element—to order the re-arrangement of prices without encompassing the ruin of tiaders or endangering ordered society. If selfishness can be replaced by service, the world can be made a very happy abiding place, and the difficulties which the Dominion, in common with the rest of the world, is certain to encounter in the near future will be considerably modified. Let us say again that the spirit of panic must be avoided, that anything in the nature of a slump must be obviated, and that courage and confidence must become the watchwords of the hour.