SECTIONAL TRANSACTIONS.— F, G. 357 



Wednesday, September 10. 



Mr. W. Hamilton Whyte. — The Standard of Living and the post-War 

 Trade Depression. 



Amongst the important economic features of post-war Europe are a diminishing 

 rate of increase in population along with an increase in production. This has been 

 accompanied by a fall in the cost of living, thus providing a greater margin for expen- 

 diture on non-necessary goods. An examination of existing data suggests that Great 

 Britain has not been an exception to this general tendency. The proportion of 

 children to wage-earners has fallen, the volume of production has expanded, while 

 the level of prices has decreased. So far as the employed population is concerned the 

 standard of living has not fallen. Great Britain has suffered more than most European 

 nations through unemployment, but the reduction in the standard of the unemployed 

 has been offset by an increase in the resources of relief and various forms of socialised 

 income. Hence it appears as though the country has been able to maintain her 

 standard in spite of an abnormal percentage of unemployed. 



Does this analysis throw any light upon the problem of unemployment ? There 

 are at least three probable causes of unemployment : (a) Slowing down of production. 

 Such does not seem to have applied until recently. (6) Rationalisation by which pro- 

 duction is maintained by a reduced supply of labour. This may ultimately check the 

 decline in unemployment in the staple industries but it is not likely to lead to anj' 

 big increase in the demand for labour. Even if it leads to a fall in prices through 

 diminished cost, the demand for staple products is not very elastic, (c) Disparity 

 between wholesale and retail prices. At present this disparity tends to widen. Certain 

 factors encourage production in face of falling prices, such as reduction in costs and 

 methods of control. Other factors tend to prevent retail prices falling in the same 

 ratio as wholesale, such as increased expenditure on consumable goods at the expense 

 of saving, an increase in the volume of socialised income and the relative stationariness 

 of wages which form a big item in distributive costs. This disparity tends to expand 

 the distributive trades disproportionately to other trades and thus lower our competi- 

 tive power in international markets. A fall in retail prices should increase employment 

 in the production of goods for which the demand is elastic, stimulate new industries 

 by releasing new purchasing power and assist export trade by improving our competi- 

 tive power. At the same time this new demand would be more variable since it could 

 only arise after primary wants have been met. It would necessitate greater elasticity 

 in organising production and a more rapid displacement of plant. It also implies 

 greater mobility of labour and a rising standard of organising ability. It is along 

 such lines that unemployment is likely to be permanently reduced. 



This examination suggests that in Great Britain the high rate of unemployment 

 does not necessarily imply a corresponding fall in the standard of living. The nation 

 seems to have been able to maintain its standard and support an abnormal unemploj-ed 

 population over and above. But this does not minimise the gravity of the problem. 

 In so far as unemployment is due to increasing expenditure at the expense of savings 

 it means a decline in the nation's competitive power. If it indicates failure to reor- 

 ganise industry it means a decline in enterprise. The maintenance of a large section 

 of able-bodied workers in idleness, even if the nation can afford it, must in time lead 

 to deterioration. 



SECTION G.— ENGINEERING. 



Thursday, September 4. 



Internal Combustion Engines : — • 



Mr. T. F. Hurley and Mr. R. Cook.— The Influence of Turbulence upon 

 highest useful Compression Ratio in Petrol Engines. 



A series of tests were made on an E.5 Ricardo, sleeve valve, variable compression 

 engine to determine the inQuence of turbulence on H.U.C.R. (Highest Useful Com- 

 pression Ratio). The method employed was to observe the types of air movement 

 obtained by fitting various directional vanes to the inlet ports of the engine and to 

 correlate these observations with the corresponding H.U.C.R. of a standard petrol. 



