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"IT CAN BE DONE." ! (

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"IT CAN BE DONE." ( — j 1) Plea for the Miner. '1 A REPLY TO MR. GOUGHj" i iI By J. MORGAN REES, I LMtMf?f in <A? UKtuc?ty of Wales. 5 ■ If it were not a very serious situation that confronts us, -Vr. Gough's article might fittingly be termed a "burlesque. He i loegfi his temiper. He is oandid enough to edxnit that I hare annoyed him, and as a i result descends to abuse, the la-st refuge tof tie discomfited, to explain his ideas, f Economics is not a subject for annoyed or f angry men: it niaios them, forsret logio, twist hypotheses, ignore evidence, ra.nt sand ra-ve about eclipses and savages, so relined economic teaching, and finally pull up exhausted. all this bathos and pother about 'the 6s. rise per ton in the price of coal to those lazy miners, Smillie, SoJikey, bb and Co., and others of like ilk. A Sfsw hours after his article TO written the I Vise was postponed for three months. It may still Ise imposed and it may be neces- sary to impose it, if events do not change. I That will be a serious, a very serious thing for this country, not alone the Jniners, and may ruin us eventually. Yet ire repeat quite unrepentantly that The Winer is ho fool and knows, it can be xliyne." It means that 7 hours and the ►Sankey award can be paid without raising ¡the price Off coal to the consumer, if evo-fy- Jtone does his bit of clear thinking and acting. GOODWILL. b "Let me quote once again Section VI. of |the Recommendations as to Honrs and ?f'a?a? d the first Sank?y &p-ort, signed $by Ju&tice Sankey, Mr. A. Balfour, Mr. Dyckham, and Mr. T. Royden:— It is thought that these results may be obtained explained in our report without raising the price of coal to the consumer. So the miners, four members of the Com- scission as well as the six Labour mem- bers, as well as countless others believod on June 20th, and still know that it can we done, granted common-sense, absence £ Qf hysterics, sound economic changes, and -goodwill. What has happened in the meantime?1 Output has gone dprwn; the miners are Accused of slacking, and the' owners and employers are accused in some quarters inability to give clearance or of not fiUipplying tubs, trams, etc. Moreover, one thing is certain: immediately after if the first Sankey Report a political agita- tion was set up by the employers against r^tkxnaliination, and nearly have signed a memorial to the Premier against the principle. Then comes the second Sankey Report on June 23rd in fayour of immediate nationalisation in principle, to be effected at the end of three yea.rince when we have had no rest, or peace from confused issues, bad tempers, muddled thinking. i THE REAL ISSUE. Tjet us fro over some of the ground covered in previous articles and trace the real issue. Coal belongs to the long period Bjihrket. That is, a commodity its price isl determined in the long period by its CQ,ot of production rather than by demand. Fish belongs to the short period market, and its price on the market will be deter- mined by demand more than by its cost of ;orcdue,tion. Of course every time cost of production must be covered by price, or else the article or service will not be forthcoming, but in certain oases cost of production will have a more direct effect on price than demand and vice versa. Hi at is why, though there is plenty of i fish obtainable just now, big prices—much too big-are being got for it, bccause de- mand operates more quickly in the short period market. The moral of all this is as follows: in regard to coal, a shorter hour to work and a greater wage paid means an immediate drop in output and an increase in cost because, as Sir A. Geddes said on Monday night, suffident j tipie had not elapsed to allow of coinpen- -eating. improvements to be made in the method of getting coal: It is being got at present under private enterprise," which even upon the evidence already given, the present system of ownership in the coal industry stands condemned, and some other system must be substituted for it, either nationalisation or a method of unification by national purohase and/or by joint control/'—Sankey Repoit, Section J IX. ) THE LONG PERIOD. Therefore under that system, and so long as that systean persists, up jumps the Pfice of ooal. But coal must be judged by the long period market rules. Take the long period view, and more coal will be produced at less cost per ton, provided you eliminate the wastes of the Competi- tive system, provided the coal miners will do everything in their power to produce, and provided improved methods of coal getting, underground travelling facilities to save labour and lengthen tha time spent at the face, are forthcoming. Since the first report appeared hare these been forthcoming? How many economies have been made in (a) production, (b) in tran- sit, (0) in distribution, in improved out- ting machinery at the face, etc., ete. P ILr. Brace in hip speech in the House quoted that in 1918 £ 4,3&9 was paid out of the South Wales miners' out-of-work fund to member who were idle through no fiamlt of their own; but 157 oollieries were unable to work because there were no wagons, 113 because of insufficient trams, 101 because of a shcirtage of tim- ber and rails, 111 because of a shortage of horses and power, 91 because of delay in (reswore, 32 bcgwwe stf deJ"y iu d^eioping I THE ROOT FACT. Let us be candid and fair. There may be absenteeism. There are a certain num- ber of won't wM-hs in every clajps; these are in a very small minority, but the root fact stares us in the f"e-the conditions mentioned aibove, being idle through no fault of their own, obtains to-day, and it obtains because ctf many war causes, dis- organisation, because of the fact that the. worker has no effective voice in the man- agement of the mine. In fact, because of our glorious, system of 3,000 pits owned by 1,500 companies or individuals without standardisation or unification, each based on the idea, Off getting maximum profit by minimum cost. Everything depends on output; output, on the way or ways coal is produced; this is in the hands of private enterprise with profits guaranteed at Is. 3d. a ton since March 30th! Has private enterprise the incentive to buck up, strain every means to economise under such conditions? No! Up goes the cost. Has the mine-worker, with a daily storm of anti-nationalisation propaganda in the press, the incentive to do his best for the nation when he knows th,at the political wirepullers may baulk him? No! The wonder is that the figures for absenteeism are so small, 10.7 in 1913 to 12.5 in 1919; that the drop in output per maji is go small, from 19.8 tons in 1913 to 16.8 tons in 1919, to 17.1 tons in the fojar weeks ending May 24th. ( AT ONCE." In Section 15 of the first report Justice Sankey said that certain matters were to be taken in hand AT ONCE, and that no time was to be wasted in discussing put- ting this or that scheme into operation, but that royalties and wayleaves were to be dealt with idbmediately, and that unification of economies and unification I of improvenierit-s in regard to housing, baths, clearance, continuation of trans- port from collieries, reduction of volun- tary absenteeism, machinery for coal cut- ting, for coal conveying, for underground transit, for the pooling of wagons, the elimination of unnecessary distribution obfrts, and the unification of accounting were to be dealt with immediately. Has this been done? We a-re afraid that in- stead our private enterprisers havo been too busy propaganding the country against nationalisation, and not working for the public welfare. I WHOSE MONOPLY ? Monopoly must be fought," says Mr. Gough. Hear, hear: say all of us. Whose is the riionopoly to-day ? Who are in con- trol ocr the mines to-day, of our railways, of our lands? Are they the miners? "Clear your minds o.f Cânt," says Dr. Johnston. If we do, as thinking citizens, we ehall see first that it is useless to con- demn nationalisation, or the miners' policy, or hatra-working economists by hurling anathemas and shrieks at them. Coal belongs to the long period market. There is a serious drop in output, more than was expected, because what changes were recommended for acceptation in Marohhavenot been put into operation. Price goes up for the immediate present. This' ts not at all surprising when we re- member the reasons given above: there is a great outcry. Take the long period view. Put the whole industry' on a dif- ferent basis as recommended by the Com- mission's majority. Then test it. If coal ought really to cost 6$. more to-day, it is a Gs. vote of no confidence in private enter- prise. Let the Government accept the Sankey principle, and watch what hap- tens then. I EXACT FIGURES. I Now we shall deal in aane, exact figures. The first Report estimated cost of increases in, wages and reduction of hours for the remainder of this year at 130,000,000; de- creased output at 10 per cont., £ 13,000,000; making 250 millions tons for the present year total, < £ 43,000,000. This being inevit- able during the period of transition. No man in his senses saki or meant anything otherwise. Proditswere limited to Is. 2d. a ton, which, on an output of 250,000,000 tons, totalled £ 15,000,000. Now, the total profits that. might have been earned on the basis of prioos. wages, and hours (pre Sankey award) were £ 54,000,000. I ¡ The diSerence represents .239.000,000, and goes to the Government,to pay some of the estimate deficit of .243,000,000 above. Deduct nin6 millions for loss otf coal ex- ports to neutral, and we get £50,000,000. towards paying the cost of j643,000,000, leaving a net deficit of JB13,000,000 to be made up by various economies suggested in the Sankey Report. Few, if any, of these have been adopted. Now to-day the position accord- ing to the Coal Controller's White Paper is this: they are budgeting on an annual outpnt of 188 tons per man, and yet by ita own offioial figures the miners had been producing for the last 20 years 263 per year. A 10 per oent. reduction in this- would st give 237 tons per man. The Controller's figures represent a total out- put (it 217.00oooo twins per annum against the Sankey estimate of 250,000,000 tons. Sir Auckland Geddgs was oandid enough to admit, that he was not sanguine as to the 217,000,000 figure, while there must be some strong reason for the difference in the estimate of Sankey'e Committee of June 23rd—less than a n-tonth aco, Section V.Jt is my belief that workers can produce an output of 250 million tons a year. In my opiniorn it can and ought to be done. I? the output goes down the supremacy of this country is in danger." At the fiarure 217.000.000 tihe esti-

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"IT CAN BE DONE." ! (