1931-08-10 — Page 6

DISTINCTIVE HATS BY

HENRY HEATH

LTDA

From our experience we know that the Hat creates the greatest difficulty for most men, There are so many variations in the shape of the Hat, the type of features and the colour of the complexion to be dealt with, that most men are appreciative of a little expert "guidance. in the difficult matter of selection.

Mackintosh's

GOLD BAR

VEGETABLES

ร่

GOLD

BAR

Tinned

Vegetables

are grown under ideal conditions, gathered

when at their best and

scientifically tinned.

Their freshness and

perfect flavour add a pleasure to every meal.

Grocery Department.

LANE, CRAWFORD, LTD.

WHITEAWAY'S

GREAT SUMMER SALE GOLF HOSE

MEN'S WOOL HOSE

50 Doz.

MEN'S WOOL GOLF HOSE

Plain Ribbed Legs with Fancy Turnover Tops.

SPECIAL

BALE

PRICE:

All Size's.

$1.75

Pair.

KHAKI GOLF HOSE FINE COTTON

* $2.50 Pair.

WHITE GOLF HOSE in WOOL and COTTON $3.95 Pair.

MEN'S OUTFITTING DEPARTMENT

WHITEAWAY, LAIDLAW & CO.

LTD.

HONG KONG DAILY PRESS, MONDAY, AUGUST 10, 1931.

UNEMPLOYMENT: ITS CAUSE AND CURE.

AMERICAN MARCO POLO.

INTERESTING VISITOR TO

I-A BETTER APPRECIATION NEEDED OF THE

NATURE OF CURRENCY.

[BY H)

We publish below the first of a series of three articles on unemployment, and the extent to which this greatet economic problem of the age is due to a lack of appreciation of the real nature of currency!! The author, who is well-known is China, it fully equipped by experience and education to discunt this subject,

(The older géonomists worked on the baki, that there were three -agents of production, Capital, Labour and Talent." "To these, sage the author of these articles, a fourth thould be adited, namely cur- réncy; and this thesis is developed in a manner that should be of profound interest to practical puzinu men;

10

When Adam Smith wrote his maximum of wage reductions. In Wealth of Nations he recognis the first place, therefore, wages will ed only three agents of production, tend to fall, and as no one can con- namely, Capital, Labour and tinuo indefinitely manufacturing at Talent. Later economists have fola loss, he will ultimately be com lowed his example: it is for this Relled to close down. Actual un reason that their theories fail to employment as opposed to wage re- interpret accurately concrete moductions, will then sue. derm 'facts.

',

....

T. HỒNG KÔNG

K. M. A.

CERANIC & REFRACTORY PRODUCT

CLINKER PAVING, BUILDING

his twelfth

& FIRE-

world. He

at

-BRICKS

Mr. Julius Brittiebank, who has beon called the American Maroc. Polo, arrived in Hong Kong on Saturday on | trip around" the

"still going strong”,

and plane to continue his trips to all of the old familiar places that he has seen before and if pos sible cake in points of interest that he missed on the previous trips.

Descendant ef an old English family which settled in America in the Colonial days, Mr. Brittle bank's American forebears were Virginia salve holdere, living near Fairfax, Vajutage

Mr. Brittlobank has been con stantly on the go since he was ê years old, 'but his world travole re- ally began when he retired from business at 50. In the past 20 years he has seen mcr than Marco Polo over dreamed existed. He has delved into all the odd places he could find on the globe.

Tho world

During the War, owing to the In this respect Smith is not dis- temporary abandonment of the gold similar to his great contemporary standard, prices rose. Let us as Sir Isaac Newton though working sume for purposes it simplicity that clared. I have ne business to at "I go now for pleasure," he de in a different field of knowledge in a year they ro 12 per cent tend to in the far away places, and The latter's hypotheses have failed | The manufacturer's article when to explain the data acoumulated by completed, other things being equal, my only interest is to meet and modern science, at least in so far will now sell not for £10,660, not study interesting people, and see. ns. light is concerned, because they for £12,000 but actually for £12,000 is really, my home, and before 1

interesting places. recognised only three dimensions. | X 122/100-or. £13,440. He has on It took Einstein to perceive this his £11,000 made a profit of £2,440 pasa un I expect to see as much of error with its perception he pro- or approximately 2 per cent. The it as possible." duced a formula which for the first result in where profits are so large of interest: If he is in the Philip . Hia travela take him to all places time harmonised theory with ex- he will make every attempt to re- perience.

peat the experiment as often as pines and Kilauea, the great val. possible, and as to do so he must ano, is in eruption, he stays for employ more and more labour un-the show. If not, he stops, off in the little naval station of Guam. employment will decrease

So, about the world he goes.

Adam Smith propounded, so to speak, a three dimensional economic theory which is being applied with the most disastrous results to j what is in reality a four dimension- al economic world.

...

The World Should be Rich

Modern China, Ware the old Economists correct

China, he says, is the most in there certainly should be no want teresting place on the globe, There in the modern world. By the aid in that vast country is presented & of machinery a man can to-day pro- picture of life down through lang dues as much in eight hours as ages of cultural development. Much could ten men two centuries ago of the old China is disappearing, If only one were to work and the he says, making way for modern other nine remain idle, or if each i

were to work only one hour a day, taking hold of modern ways of life.

Chinese fimprovements the in theory they should be no worsh of materially than were their fore-adopting modern conveniences, but beara. And, yet when working an vast land plenty for the traveller thero still existe, throughout the eight hour day they seem in foot to be faring little if any better.

to see:

are

We have come to regard the pre- sent worldwide economic depression as caused not by our own action but by an act of God. Yet it is not too much to say that Europe's eleven million, aud America's ten million, unemployed, owe their existence not to inevitable natural causes, but to this attempt to apply in a four dimensional, economic world, a three dimensional economic theory.

We have for purposes of analogy considered agents of production as

The reasons for this are partly dimensions. The fourth agent of

currency reasons, the tendency of production which, we have the value of money to rise leading pointed out, theory ignores is to unemployment, and partly in-

"You tako it from Brittlebank," currency as distinct from capitel. crease in population which has he says, "there's not much to sli It is the fact that the terra capital derived from the march of inven with the way the world was when oaten away the advantages to be this depression talk. Compared bas in so far as production is con- cerned been regarded as embracing Lion. Were the population of Eng I first started traipsing around. currency that has caused the latter land to be 12,000.00 is at the time over it, the world is a thousand unique influence on production to

48

Mr. Brittlebank has been all over Scuth America, to Austra:in. in every country in Continenta! Europe, in Asia and Africa.

in

of the Napoleonic Wars, not only times better off today. People are be overlooked. Yet the importance would emigration become unneces building everywhere, the standard. of recognising that unique in- sary but England would be a de-of living of all peoples, even the fluence can scarcely be exaggerated.ightfully easy country in which Chinese, has improved remarkably.

In illustration, we will take a to earn a living. As things are, very simple concrete case."

however, natural resources in many A manufacturer in October 1020 lists aro utterly inadequate for the considers producing an Article 2eeds of her inhabitants, and shor: which we will call "X It has a

tage has to be made good by selling ready market for £12,000 and will the fruits of their labour to reluc- take one year to produce. He cant purchasers abroad. determines with mathematical cor- tainty that the complete capital re- quired for its production is £11,000, made up of £10,000 for materials, £500 for wages and £500 for talent, or £10.000 for wages, £500 for materials and £500 for talent, or of £10,000 for talent, £500 for wages and £500 for materials it does not really matter."

They kick about hard times all over the world, but I notice that I have to stand in line to pay about 10 times as much to see a show London, where years ago I went in. without waiting. The men who Then on top of all this there is finding themselves with less to-day, splurged when they had money are the currency question. The more but the man who put away what labour sweats to increase produc. he made in the good times is rid tion in order that prices may falling along on the crest of the wave," and become competitive, the more this question of cirrency, as we have seen, tends to increase unen- playment. With our present mane goose that lays the golden eggs tary system there sema po way of showing signs of exhaustion and escape. If we lose our foreign budgets. difficult to balance, Now arguing on the three markets we cannot stain the, sup- | The mischief of this currency agents of production" theory the ply of raw material which our ex-business is seen the most clearly of manufacturer will estimate that by oesive population must look for fall in Australia. There one finds undertaking the work he must with from abroad. To retain them then thinly inhabited continent full of mathematical certainty receive 9 per supply of commodities must be natural resources, Nq country in cent interest on his capital so intending to increase out of all pro-the world should be relatively rich- vested, or nearly twice as much as portion to the increase in the super, yet Australib is faced with an were he to invest his money in guilt ply of gold. ****

economic crisis of the first magni edged government securities. He

To those with unprejudiced obtude. The reason is not hard to will presumably therefore under- jective minds the dision of Engseek. Australia has the largest take the work,

land to return to her former: gold national debt per capita in the standard after the War appeared world. Owing to fall in prices the almost as disastrous from a mone. intrinsic value, or burden, of this tary point of view an if a first class debt has practically doubled since. wir had been declared. It made the the, Was The payment of interest coal strike of 1923 and the general upon it in the form of services is strike of 1926, inevitable, for wages more than can be stood. The man. had to come tumbling down with who has invested in government the rise in the valus of sterling. It bonds finds the purchasing power of practically doubled the national the interest from them doubled; this. dest as measured in intrinsic value, means, of course, that the nation and hence its burden. But this act is called upon to reward him for of England's was only the begin his loan just twice as heavily na financial, world had displayed a this direction is doubled, and the ning. The central figure of the before. The budget obligationin faith in gold, a desire for gold utbudget in consequence will not almost, any sacrifice, which sot an balance, for falling prices have example that lesser aancial. en-rendered trade bad. titles were not likely to be slow in It is true in the United States; imitating. Japan and the South although there is no national debt, American Republics adopted a gold considerable Drencial embarrass. standard thereby further appreciat-ment has been experienced. The jug that metal and lowering prices. [reason springs from the fact that Then India, the great silver market the American has an unusual spirit of the world, followed suit. The of, enterprise and the habit which Straits Settlements did likewise, and goes with it of taking narrow risks, the whole world groaned under fall. He calculates these risks on a three ing prices, with their inevitable dimensional economic theory, in o four dimensional economic world. companion rising unemployment

The results ärè disations. The gold The Mischler of this Currency:standard se in use, is at the moment the American business man's worst 'enemy,

Profits-If Prices Fall! Let us now introduce this fourth agent of production, currency, and see how the whole position changes, In the year from October 1929 to October 1030 prices declined per cent. Other things being equal the price of article X. will have so de- clined. By the time it is completed it will sell for only £12,000 x 88/100 or £10,500, therefore, has not only received no The manufacturer, interest on his .£11,000 throughout the year, he is actually £440 out of pocket. Not only, would he have [doue' infinitely better had he invest

ed in Government securities, he would have done better had he merely buried his money, in the ground.

The result is that, learning from "experience and necessity, the manu | facturerer will tend not to repent the experiment, and the capital which, without the interference of this fourth factor of production, he would have expended on employing. labour will not be so used; and hence unemployment.gr ke

Now assume that the materint

valued at £10,000, for making X is If one stops to consider the his in the first place. If he does National Debt, as already said: it nothing with it, at the end of a la ay to see how much this policy year its value will have dropped has cost England, It has practical from £10,000 to $10,000 x 89/100 only cost her as much as the Great £8,800; he will have lost £1,200; he War. The fall of prices to one half: is therefore even worse off than had he employed labour to make the articla, X. He will, assuming that he, cannot dispose of hit material, be coerpelled to manufacture, even though" at a loss rather than not atiall: But to minimise this loss be will press with all his might for a

Germany is suffering, perhaps as severely as any untion in the world, for two reasons fall in prices has practically doubled her enormous debt, to the Allies as paid' in goods. Owing to the difficult position after since the debt was contracted the War of her mercantile com doubled the purchasing power of the munity they warn compelled to work money, which must spent on its on narrow margins which meant redemption. This means that its taking narrow risks, In the cir burden in doubled, for the taxpayer dumstances it is not surprising shu pays for it ultimately - in goods should have nearly 5,000,000 unem No wonder Mr. Snowden finds theployed

{{Continued on na) Column.)ų"?

(To be Continued.)

STONE-

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