Labour policy—false and true : $b A study in economic history and industrial economicsMacassey, Lynden Livingston
History
Labour policy—false and true : $b A study in economic history and industrial economics
Macassey, Lynden Livingston
Industrial policy -- Great Britain; Labor economics -- Great Britain; Labour Party (Great Britain)
The nation’s dependence on coal was manifested early in the war; output
fell as miners loyally responded to the call for men; prices rose as
domestic consumers competed with munition industries for fuel. Early in
1915 exports of coal had to be curtailed by Government—in July 1915, the
Price of Coal Limitation Act had to be enacted, limiting the price to be
charged for coal at the pit’s mouth. Our Allies began to protest against
the price charged to them for coal, and coal-owners, exporters and
shipowners agreed voluntarily with the Government to limit the price of
Ally coal. But that did not go far enough, and ultimately in 1917 under
D.O.R.A., powers were conferred on the Board of Trade to regulate prices,
and the distribution and transport of coal both for home and Ally use.
Trouble continued to develop in the South Wales mines, and the supply
of essential steam coal was in danger. The Government accordingly took
over, from December 1, 1916, control of the South Wales coal-field,
and as, elsewhere, industrial and transport difficulties were causing
great anxiety, they also took over, from March 1, 1917, the rest of the
coal-mines in the country, and constituted a Coal Mines Department.
The actual management of individual mines was left to their respective
owners, the Department directing them how to dispose of their supplies
so as best to meet the needs of the country. It was inevitable that as
control of the mines had been transferred to the Government, the wages of
mine-workers could be a matter no longer for district adjustment but for
national settlement by Government, and, since 1917, this was the course
adopted. It is unnecessary to go into the question of miners’ earnings,
they will be found in the volume of Appendices to the Coal Industry
Commission’s Report (_Parliamentary Paper_, 1919, Cmd. 361, pp. 55 and
109). An admirable comparison as between 1914 and 1920 is contained in
Professor Bowley’s book, _Prices and Wages in the United Kingdom_. The
point to be noticed is that after 1917 wages were paid really out of a
national pool consisting of the aggregate profits of the coal industry
with the national exchequer behind them. As a result of control, some
coal-owners, from their position and circumstances, realized large
profits; others suffered considerable losses. To provide compensation
for the latter, under an agreement made between the mine-owners and the
Coal Controller, scheduled to, and confirmed by, the Coal Mine Control
Agreement (Confirmation) Act, 1918, a fund was provided by pooling a
prescribed percentage of excess profits. The disparity in the relative
profit-making capacity of firms which had always existed was of course
materially intensified by control; before the war it had not, however,
materially affected industrial conditions. Events soon proved the
impracticability of continuing the 1918 compensation provisions. There
had existed arrangements for securing supplies of coal to our Allies
Public-domain text, read in full here on John Shaqi.
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