licensed stationary engineer ultimately found a job as a caretaker in a public park, an operator of a welding machine became a farm hand, and an experienced spinner from a worsted yarn mill took on the job of radio repair man. A skilled German woodworker, who for many years had been employed in a piano factory, was mixing salves for a drug manufacturer at $20 a week. Many skilled clothing workers had opened cleaning and pressing establishments of their own. Seven of the men had taken up bootlegging. When interviewed, one was driving a truck which was being used for the illicit transportation of liquor. Another was selling whisky to friends and acquaintances.

Seventy-seven, or 18.8 per cent of the permanently employed workers, were earning more at their new jobs than they had at their last permanent employment; 197, or 48 per cent, were receiving lower wages; and 111, or 27.1 per cent, had about the same income. The results of the survey led to the following conclusions, stated in the words of the report:

It should be evident from the material presented above that there is considerable mobility of labor at the present time and that the newer trades are absorbing a good percentage of the workers who are being discharged from the "older' industries. Absorption, however, is a relatively slow process. Those workers who do find new jobs are in a majority of instances compelled to remain idle for three months or more before finding new employment. When they do secure new jobs they frequently take them at a sacrifice in income. An appreciable portion of them, however, have been able to secure higher earnings in their new jobs than in their old.

It must be emphasized that the sample covered in this survey is much too small to justify any broad generalizations as to what is happening in modern industry. Without a sample many times larger than that which could be handled during the period at the disposal of the Institute of Economics, it would be foolhardy to generalize for industry as a whole. All that can be said is that the results described apply only to the group that has been surveyed. They show what has happened to a limited number of workers employed in over 20 industries. It is hoped that eventually more elaborate studies will throw some light upon whether the survey we have made is typical of the general trend.

Three English Programs for the Treatment of Unemployment

W

ITHIN a few weeks of each other three publications appeared in England, two of which dealt exclusively with unemployment while the third gave it a prominent place. The first in order of time was the final report of the committee on industry and trade, under the chairmanship of Sir Arthur Balfour, appointed in 1924, the second was the report on unemployment of the conference on industrial reorganization and industrial relations, which has already done important work in regard to cooperation between employers and employees, and the third was the program set forth by the Liberal Party explaining the action it proposed to take in regard to unemployment if it were returned to power at the approaching elections, to be held May 30.

The attitude of the first body is largely negative. Its field of inquiry was the whole state of trade and industry, and it dealt with unemployment simply as one aspect of the general situation. Its general position is that the unemployment prevailing in Great Britain is a fairly normal development, brought about by a combination of cyclical depression and war results, which is likely to pass away without any radical measures of assistance if once industry can wake up to the fact that it has to meet present-day conditions and that it must depend

upon its own initiative and force to overcome the difficulties admittedly confronting it. The process will be painful, but that is inevitable. The only hope is to shorten it as much as possible by uniting the intelligence, the good will, and the energy of employers, employees, and the general public in bringing about the necessary readjustments. Schemes of State help, or radical changes in the relation of capital and labor are not only futile but actively harmful. A minority report dissents from these conclusions.

The second body, composed of employers and workers acting together, advocates a more positive program. Due to the changes brought about by the war, it holds, there is an actual surplus of labor in England at present, and this is likely to be increased by the measures of rationalization which must be taken if Britain is to regain its place in the world markets. A triple attack should be made upon this surplus by means of a bold and comprehensive emigration policy, by raising the school-leaving age, and by adopting a more liberal old-age pension policy to take the veterans out of industry. Trade and industry should be promoted by a system of export credit and trade facilities offered by the Government. Industry should be rationalized, and employers and trade-unions should confer together to find means of lessening the hardship involved in laying off workers who, under more efficient methods, will not be needed. Special measures should be adopted to relieve the situation in the coal-mining industry. Methods of rationalization, improvement of the currency and banking systems, and foreign policy in its bearing on English trade are to be discussed in future reports.

The third plan, the platform of the Liberal Party, contained nothing which had not already been advocated, but it was set forth with a clearness and an attention to detail which vitalized the whole question. The fact is recognized that the unemployment in Great Britain is due in part to world causes and that its permanent cure demands farreaching changes in organization and in foreign policy which can not be hastily accomplished. But meanwhile, on the one hand there are over a million unemployed workers and on the other there are potential improvements which would immensely increase the productive assets of the country; why not bring the two together? As a beginning, take six major lines which would affect at once the industrial prosperity of the country, set the unemployed to work at these, get their wages into circulation, build up the transportation, housing, electrical and drainage systems of the country, and while this is going on begin planning and putting into gradual execution the wider policies which shall bring about a permanent restoration.

A more extended review of each of these three reports is given below:

Final Report of the Balfour Committee

THE Committee on industry and trade, commonly known as the Balfour Committee, appointed in 1924 to "inquire into the conditions and prospects of British industry and commerce, with special reference to the export trade," has added to the six interim reports already published a final volume of 388 pages, designed to give findings, recommendations, and conclusions upon the whole range of topics covered by its terms of reference. It is impossible, however, the

committee feel, to give any formal list of conclusions, since it had been necessary to consider a variety of subjects, each of which led to a number of recommendations, some advocating practical action and others deprecating measures which the committee felt would be harmful.

The net result is a multiplicity of findings, some positive and some negative, some dealing with questions of principle and high policy, some with points of technical detail, of which the mutual connection and bearing on the central problem referred to us will not always be apparent without a comprehensive study of the whole report.

Among this "multiplicity of findings," probably those relating to unemployment and its possible remedies are of the most general importance. Unemployment is only one feature of a general industrial depression, and it has been made abundantly clear, the committee feel, that not one but many causes have combined to produce this situation. Among them are the growing tendency toward economic nationalism, the industrialization of formerly agricultural countries, the impoverishment and loss of purchasing power caused by the war and by the collapse of currencies which followed it, the increase of tariff and trade barriers, and the loss of good will due to the cutting off of outside markets during the period of hostilities. In addition, British industry has not yet adapted itself to the new conditions following the war. In brief, the present need is that means should be found of restoring the competitive power of British industry and trade without impairing the standard of living, and of enabling British exporters to place their products in external markets in sufficient volume and on terms acceptable to overseas buyers.

To accomplish this end, industry must be reconditioned, which will involve much scrapping and replacement of plant, with consolidations and regroupings to obtain the benefit of large-scale production, elimination of waste, standardization and simplification of practice, and all the other measures of economy usually included under the term "rationalization." On the other hand, in order to preserve those special characteristics of variety and quality of products which have been the main strength of British industry and commerce, it is necessary to impose severe limits on the extent "to which simplified methods of mass production or schemes of intensive amalgamation can be advantageously introduced into British manufacturing industry."

The program thus rather vaguely outlined demands liberal expenditure, and the committee admit that many of the most important depressed industries seem unable to command the capital to carry it through. Various suggestions to remedy this situation have been considered, "including such diverse proposals as tariff protection, currency reform, or the management of industrial enterprises by public authorities." As to the desirability of tariff protection, the committee disagreed, a minority advocating the repeal of the McKenna and safeguarding duties now in effect, while the majority considered that a clear case for abolition had not been made, but that a time limit for such duties should be set, with reconsideration of the industry's claims one year before the duty should expire.

Currency reform, in so far as it involves any departure from the gold standard, is to be condemned. Collective purchase of raw

materials is considered and dismissed as probably not practicable. "The management of basic industrial enterprises by public authorities" is wholly discountenanced. The basic industries, even the most depressed, have the power within themselves to carry through measures for their own regeneration, provided they are first convinced that such measures are essential and unavoidable, and that they must be undertaken by themselves without reliance on any outside authority. The nature of such measures depends on the circumstances of the particular industry in question.

At all costs, power of access to new capital must be regained, and for this purpose measures of financial reconstruction, writing down of capital and amalgamation with other undertakings, so as to increase the size of the business unit, are or may be among the essential measures to be taken, painful as some of them may be. * * *

As the aim of reconstruction must be to operate the most efficient works full time, the result will be to afford the maximum amount of full employment and at the same time to diminish the number of part-time workers. Such a policy

in its early stages may involve an actual increase in the number wholly unemployed, and all possible steps should be taken to mitigate any hardship incidental to the transition.

As to how such hardship is to be mitigated, the committee has nothing to say. Public provision of productive work for the unemployed had been discussed in an earlier section of the report, and rejected as not being practicable except within very narrow limits. The committee is sure, however, that in the long run the industries which have regained their prosperity will be more than able to reabsorb the workers who have been displaced by the process of reorganization.

Two members of the committee found themselves wholly unable to sign the report, and five others signed it subject to a memorandum presented by the group of seven. The seven dissenters state their position as follows:

What we can not accept is the view, running right through the report, that nothing can or need be done by way of fundamental modification of the traditional approach to national economy and the assumption that private enterprise and free competition can be left, by themselves, gradually to right things.

The fallacy of such a view, they feel, is evidenced by the steady worsening of the industrial situation during the time the committee has been at work, and they see no prospect of improvement except through a pronounced change of attitude. Reorganization is necessary, and should be carried through under State guidance to secure the benefits of a coherent and consistent plan and to avoid the loss and delay involved in waiting for each industry and undertaking to become convinced of the necessity for its own modification or, perhaps, its absorption. Also, State guidance is needed in order that the gains of reorganization may not be monopolized by groups, sections, or individuals, but as far as possible diffused through the community. Moreover, the State has a special duty in regard to unemployment.

Incumbent on the State further is the obligation to facilitate and support reorganization by national measures, both temporary (maintenance of the unemployed) and permanent (measures of national reequipment).

For these purposes two new bodies should be created, a national economic committee and a national employment and development

board. It should be the duty of the first "to know the facts in a scientific way and see them as a whole" and of the second to see that the plans worked out by the first in conjunction with the industries themselves are actually initiated within a time limit and carried through to the public interest. The importance of State control over land, transport, and electricity is emphasized, and stress is laid on the development of such types of public policy as the export credits scheme.

Report of the Melchett-Turner Conference

CLOSELY following the publication of the Balfour report came the interim report on unemployment issued by the conference made up of a group of employers, headed by Lord Melchett, and of representatives of the Trades-Union Congress under the chairmanship of Mr. Turner, commonly known as the Melchett-Turner Conference. Taking up the admitted facts of the present situation, the report gives some consideration to causes, but is mainly devoted to possible remedies, with a distinction between the special measures for immediate adoption and the basic remedies, which are to be more fully discussed in a later report.

The causes of the present situation are threefold: First, there is the basic factor of cyclical unemployment, intensified by the monetary policy adopted; second, there are the general changes due to the World War and the slowness of British industries to adapt themselves to the new conditions; and third, there is a temporary displacement of workers due to the adoption of labor-saving methods, a factor which has had some effect already, but which is likely to be far more important during the next few years if British industry succeeds in rationalizing itself.

As to how the situation should be met, the conference offers this summary of recommendations:

1. A comprehensive inquiry into the consolidation of existing pensions and insurance funds should be immediately set up by the Government.

2. Funds for assisting emigration should be largely increased and found by loan instead of out of revenue. These funds should be under the control of a committee of representatives of industry under the chairmanship of a minister and similar committees should be set up in the Dominions. A program extending over a period of 20 years should be aimed at in the scheme of settlement. Emigration by groups or community should be undertaken. Emigration policy should be coordinated by a joint committee for the British Commonwealth with representatives of employers and trade-unions upon it.

3. Unemployment in the mining industry should be considered as a special case and relief measures and schemes should be continued at an accelerated rate. 4. Orders for Government and municipal departments should be placed in this country under properly regulated and coordinated conditions.

5. Trade facilities should be reinstituted under more liberal conditions. 6. A Crown colonies development committee should be formed for purposes of development and the placing of orders for plant in Britain.

7. Export credits should be extended in reasonable cases in order to achieve the greater stimulation of immediate purchasing power.

8. Augmented pensions out of national insurance and pension funds should be made available to workers of 65 and over who cease work, such pensions to be supplemented by employers when conditions permit.

9. The Government should create and maintain a development fund capable of financing important national schemes.

10. Further extension of constructional schemes of a permanent character should be undertaken and existing schemes hastened in their application.