246 TRANSACTIONS OF SECTION F. 



reorganisation of industry as such, but for the development of higher social 

 conditions and the raising of the standards of life. 



This is just where the work of the National Alliance differs in extent from 

 that of Whitley Committees, and even from that of the organisation to be 

 set up in connection with the National Joint Industrial Council. We take 

 the view that, essential though it may he, it is not sufficient for employers and 

 employed in any one particular industry to co-operate merely for the improve- 

 ment of the commercial and the working conditions in that industry. The 

 wider problem is not solved merely by settling hours of labour, rates of pay, 

 amounts of output, &c., and leaving such questions as the provision of healthy 

 home surroundings, educational opportunities, recreational facilities, &c., to 

 take care of themselves. The machinery of the National Alliance is designed 

 not only to bring the employers and employed of a given industry together for 

 the settlement of their own especial problems, but also to link up the employers 

 and employed of all industries in a particular area in a joint endeavour to 

 improve the general conditions in that area. 



The work which the National Alliance has taken in hand is a great and 

 difficult one, but on its accomplishment depends the future of our country. 

 The evil centuries of hatred and struggle between the forces of Capital and 

 Labour have built high and wide their barriers of antagonism and dark mis- 

 trust. They cannot be .swept away in a day, but the experience of the National 

 Alliance has shown that on each side there is an increasing number of earnest, 

 thoughtful, far-seeing men who are realising the errors of the past and who 

 are willing to join in a great national fellowship for the security of the future. 



2. Price-fixing, with special reference to Aiistralian experience. 

 By the Hon. Sir Chaeles G. Wade.^ 



The demand for fixing prices has arisen from two causes : — ■ 



1. The continuous rise in wages has led to a corresponding addition to the 

 cost of production and the cost of living. This increase in turn has led to 

 demands for still higher wages ; and so a vicious circle is established until at 

 last the workers have demanded that whilst the right to further increases of 

 wages shall not be curtailed a limit shall be placed upon the consequent 

 cost of living. 



2. The dislocation, during the war, of manufacture and the means of trans- 

 port, and the commandeering of m-aterial, created a scarcity in certain commodi- 

 ties. The scarcity led to an increase in prices, and some commodities became 

 the subject of a monopoly. 



Some people claimed that this rise in prices was but temporary, that the 

 law of supply and demand would eventually adjust the trouble automatioally ; 

 but where a commodity is ' cornered ' this is no answer, and some drastic measure 

 of control is essential. Hence the claim for compulsory fixing of prices ; at 

 all event.^ whilst the war lasted. 



This policy met with some success during the war, but must not be taken 

 as a guide for peace conditions. 



During the war producers were less restive ; all classes were animated by 

 patriotic feelings ; workers made greater efforts, the consumer submitted to 

 hardships and high prices without much protest. Further, although maximum 

 prices were fixed yet it is generally believed that they were fixed so l-.igh as 

 to dissuade the profiteer from offering opposition. 



What would be the result in peace time where private gain is allowed to 

 operate ? 



1. If the price fixed for any one commodity ceases to be profitable, the 

 efforts of the producers will be directed into another channel whicli yields 

 more. gain. Thus a real st^arcity may be created. 



1 See Sir C. G. Wade, ' Price Fixing by Law,' in Fortniahthi Review, 

 November, 1919. & ^ > a j 



