necessary that coal, her only source of power, should be cheap and plentiful.

The British coal-miners are trying to enforce their economic and political demands by restricting production, and by threatening to bring all the industries of the country to a standstill. demanding the unconditional surrender of the Government. Lately other workers have been adopting a similar attitude. Hitherto the British Government has conceded the demands of powerful organisations of workers and has disguised the fact that the industries concerned have to pay in wages a greater sum than the value actually produced by the workers by subsidising them out of the national taxes. There is, of course, a limit to such proceeding, for in industry after industry the workers are demanding a higher pay than the industries can bear. They also wish that their wages should be supplemented by State grants. Some of the labour leaders are recognising that the continuance of that policy must lead to national bankruptcy. Mr. Hartshorn, a coal-miner, said with regard to the demands of the mine workers in the House of Commons on the 14th of July 1919 :

We are faced with a very serious problem, and the duty devolves upon us to try to find a solution. It is not merely the mining industry that is concerned. We have a very serious situation arising in every direction. We have subsidised railways, subsidised agriculture, subsidised buildings, a subsidised post office, and now we are faced with subsidised mines. We have only to have the textile and the metal trades in the same position and we shall be bankrupt. While we are in this position we are borrowing money to pay our way. I am sure no responsible citizen can view the present situation without grave misgivings.

Sir J. Walton stated at the same sitting:

In connection with the coal mines at the present moment there is a deficit of 46,000,000l., which is to be raised by charging 6s. a ton extra for the coal, or else it has to be paid by the taxpayers of the country, and trade will be subsidised to that extent. I believe that is an unsound system. The railways are being worked at a loss of 60,000,000l., bread is being subsidised at an expense of 50,000,000l., workmen's labour is being paid for, and altogether something like 200,000,000l. is being provided as substitutes— that is a larger sum than our total pre-war national expenditure-in different trades. All these subsidies must be abolished before we can reach a sound financial position.

Somewhat similar conditions prevail in other European countries, but not in the United States. War conditions, the inflation of the currency and reckless agitation combined have raised the remuneration of labour to an impossible level and its output has diminished. Under the guidance of grievance-mongers and strike-manufacturers the working men have become

profiteers who, for the minimum of labour grudgingly done, demand with threats impossible wages from the employers or from the State, and at the same time they complain about high prices which are very largely due to their own exactions. Wages are continually rising and production is falling. Never have the

workers had a better time than during and after the War. Yet they are dissatisfied. The idea that the position calls for the most energetic labour and the utmost economy is scouted by the workers. There is absolutely no limit to their demands.

The facts given in the foregoing show that the European nations suffer not only from an inflation of State credit and of private credit, but also from an inflation in the cost of production and of transport. Its continuation will inevitably ruin industry and commerce.

While there is a tremendous inflation of State credit, of private credit and of the cost of labour in Europe, credit in the United States has been only little inflated and wages, measured by the quantity of goods produced, are far lower over there than in many European States. Hence the United States can produce more cheaply than England, as has been shown by a few comparisons given by Sir A. Geddes, and they are beginning to monopolise the business of the world. At present they supply one half of the world's manufactured exports, and their total exports are three times as large as were those of Great Britain in 1913. The workers in England and in other European countries as well are able to draw high wages and to live well, although they do not produce enough for their requirements, because the Americans are supplying the late belligerents with food, manufactures, and raw materials on credit. However, that state of affairs cannot go on interminably. The day will come when the United States will refuse to export goods on credit to nations some of which are of doubtful solvency.

The position of commerce and industry is obviously as unsound as that of State credit and of private credit. Nations anl industries, like individuals, can become prosperous only by high production and thrift. The boom in wages is bound to be followed by a slump. The artificial props which are supporting the economic fabric of Europe will break down. State credit, private credit, and the cost of labour will have to find once more their natural level. The almost world-wide inflation of credit, of prices, and of wages is bound to lead to a world-wide crisis of unexampled magnitude and severity. It is only natural that the greatest war in history should lead to the greatest economic crisis of all time. The position is thoroughly unhealthy and calls for liquidation. That liquidation will bring with it very hard times,

but these should prove a blessing. They will teach men that they can become prosperous only by their own exertions. The Govern ment should abandon its policy of drift and warn and enlighten the people and especially the workers--in time of the evil days. that are bound to come. Otherwise the working masses may accuse the employers, the capitalists or the State, not circumstances and their own folly, and hold them responsible for their sufferings. J. ELLIS BARKER.

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