480 REPORT—1890. 
system is only possible in certain trades, its sudden adoption will affect 
relative values. 
In so far as the producers in the trades where production is increased 
belong to ‘non-competing groups’ the benefit of increased production 
may go entirely to those engaged in industries where no increase in pro- 
duction is possible or takes place, and it is even possible that the varia- 
tion in relative values may leave the first-mentioned producers worse off 
than before. 
An illustration may be given. Suppose there are in a factory 100 
men working 12 hours a day: the number of hours’ work each day ‘is 
1,200. Suppose the hours of labour reduced to 8, then the 100 men will 
in one day work 800 hours. In order to maintain the aggregate produce 
50 additional men will be required, working 8 hours a day; hence the 
second shift will have to consist of 50 men only. If 100 men instead 
of 50 were employed, the total production per day would be 1,600 hours, 
and it is possible, under the circumstances above mentioned, that the 
product of the 1,600 hours may exchange for the same amount? of other 
commodities as the product of the original 1,200 hours. In such a case 
the consumers are benefited, but the 200 producers have, after the 
exchange, the same amount of commodities to divide as the 100 original 
producers. 
Subject to these limitations there is no doubt that the efficiency of 
fixed capital in many industries might be largely increased, and such 
increased efficiency would tend to modify any loss that might fall on 
the labourer, owing to any decrease in the rate at which capital accu- 
mulates under a régime of shorter hours of labour. 
Section IV. As regards International Trade. 
Notwithstanding the enormous extent of the export and import trade 
between nations, there are numerous classes of commodities and services 
that each State must obtain within its own borders. Amongst such 
commodities and services may be mentioned :— 
(a) Products that from their nature cannot be easily imported into an 
island like Great Britain—e.g., water, gas, electricity—though their pro- 
duction is liable to be affected by the possibility of importing substitutes. 
(b) Products that take the form of improvements to or erections on 
land, e.g., railways, canals, roads, houses, and buildings. 
(c) Services relating to the carriage of products from the producer to 
the consumer within the State. 
(d) Services of those employed by the State, either directly or 
indirectly through local bodies. 
(e) Domestic services. 
(f) Services relating to the transport of individuals. 
Other examples might be added, but these are sufficient to show that 
there are a large number of persons employed in producing forms of 
wealth, and in rendering services that do not enter into international 
trade. Would a reduction of the hours of labour in such employments 
affect the export and import trade of the country? No very definite 
answer can be given, but it is conceivable that capital and labour might 
be drawn off from other industries in order to maintain the aggregate of 
such products and services, and then the home demand for foreign com-— 
