LITMIR.BIZ

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seems to them, unnecessary state of suspense. Kept back from all they long for, years after the reality of their service has departed! If this does not undermine them, I do not know what will. Demobilisation – they say – must be cautious. "No man should be released till a place in the industrial machine is ready waiting for him!" So, in a counsel of perfection, speak the wise who have not been deprived of home life, civil liberty, and what not for a dismal length of two, three, and perhaps four years. No! Demobilisation should be as swift as possible, and risks be run to make it swift. The soldier-workman who goes back to civil life within two or three months after peace is signed goes back with a glow still in his heart. But he who returns with a rankling sense of unmerited, unintelligible delay – most prudently, of course, ordained – goes back with "cold feet" and a sullen or revolting spirit. What men will stand under the shadow of a great danger from a sense of imminent duty, they will furiously chafe at when that danger and sense of duty are no more. The duty will then be to their families and to themselves. There is no getting away from this, and the country will be well advised not to be too coldly cautious. Every one, of course, must wish to ease to the utmost the unprecedented economic and industrial confusion which the signing of peace will bring, but it will be better to risk a good deal of momentary unemployment and discontent rather than neglect the human factor and keep men back long months in a service of which they will be deadly sick. How sick they will be may perhaps be guessed at from the words of a certain soldier: "After the war you'll have to have conscription. You won't get a man to go into the army without!" What is there to prevent the Government from beginning now to take stock of the demands of industry, from having a great land settlement scheme cut and dried, and devising means for the swiftest possible demobilisation? The moment peace is signed the process of re-absorption into civil life should begin at once and go on without interruption as swiftly as the actual difficulties of transport permit. They, of themselves, will hold up demobilisation quite long enough. The soldier-workman will recognise and bear with the necessary physical delays, but he will not tolerate for a moment any others for his so-called benefit.1

      And what sort of civil life will it be which awaits the soldier-workman? I suppose, if anything is certain, a plenitude, nay a plethora, of work is assured for some time after the war. Capital has piled up in hands which will control a vast amount of improved and convertible machinery. Purchasing power has piled up in the shape of savings out of the increased national income. Granted that income will at once begin to drop all round, shrinking perhaps fast to below the pre-war figures, still at first there must be a rolling river of demand and the wherewithal to satisfy it. For years no one has built houses, or had their houses done up; no one has bought furniture, clothes, or a thousand other articles which they propose buying the moment the war stops. Railways and rolling stock, roads, housing, public works of all sorts, private motor cars, and pleasure requirements of every kind have been let down and starved. Huge quantities of shipping must be replaced; vast renovations of destroyed country must be undertaken; numberless repairs to damaged property; the tremendous process of converting or re-converting machinery to civil uses must be put through; State schemes to deal with the land, housing, and other problems will be in full blast; a fierce industrial competition will commence; and, above all, we must positively grow our own food in the future. Besides all this we shall have lost at least a million workers through death, disablement, and emigration; indeed, unless we have some really attractive land scheme ready we may lose a million by emigration alone. In a word, the demand for labour, at the moment, will be overwhelming, and the vital question only one of readjustment. In numberless directions women, boys, and older men have replaced the soldier-workman. Hundreds of thousands of soldiers, especially among the first three million, have been guaranteed reinstatement. Hundreds of thousands of substitutes will, therefore, be thrown out of work. With the exception of the skilled men who have had to be retained in their places all through, and the men who step back into places kept for them, the whole working population will have to be refitted with jobs. The question of women's labour will not be grave at first because there will be work for all and more than all, but the jigsaw puzzle which industry will have to put together will try the nerves and temper of the whole community. In the French army the peasant soldier is jealous and sore because he has had to bear the chief burden of the fighting, while the mechanic has to a great extent been kept for munition making, transport, and essential civil industry. With us it is if anything the other way. In the French army, too, the feeling runs high against the "embusqué," the man who – often unjustly – is supposed to have avoided service. I do not know to what extent the same feeling prevails in our army, but there is certainly an element of it, which will not make for content or quietude.

      Another burning question after the war will be wages. We are assured they are going to keep up. Well, we shall see. Certain special rates will, of course, come down at once. And if, in general, wages keep up, it will not, I think, be for very long. Still, times will be good at first for employers and employed. At first – and then!

      Some thinkers insist that the war has to an appreciable extent been financed out of savings which would otherwise have been spent on luxury. But the amount thus saved can easily be exaggerated – the luxurious class is not really large, and against their saving must be set the spending by the working classes, out of increased wages, on what in peace years were not necessities of their existence. In other words, the luxurious or investing class has cut off its peace-time fripperies, saved and lent to the Government; the Government has paid the bulk of this money to the working class, who have spent most of it in what to them would be fripperies in time of peace. It may be, it is, all to the good that luxurious tastes should be clipped from the wealthy, and a higher standard of living secured to the workers, but this is rather a matter of distribution and social health than of economics in relation to the financing of the war.

      There are those who argue that because the general productive effort of the country during the war has been speeded up to half as much again as that of normal times, by tapping women's labour, by longer hours and general improvement in machinery and industrial ideas, the war will not result in any great economic loss, and that we may with care and effort avoid the coming of bad times after the first boom. The fact remains, and anybody can test it for himself, that there is a growing shortage of practically everything except – they say – cheap jewellery and pianos. I am no economist, but that does seem to indicate that this extra production has not greatly compensated for the enormous application of labour and material resources to the quick-wasting ends of war instead of to the slow-wasting ends of civil life. In other words, a vast amount of productive energy and material is being shot away. Now this, I suppose, would not matter, in fact might be beneficial to trade by increasing demand, if the purchasing power of the public remained what it was before the war. But in all the great countries of the world, even America, the peoples will be faced with taxation which will soak up anything from one-fifth to one-third of their incomes, and, even allowing for a large swelling of those incomes from war savings, so that a great deal of what the State takes with one hand she will return to the investing public with the other, the diminution of purchasing power is bound to make itself increasingly felt. When the reconversion of machinery to civil ends has been completed, the immediate arrears of demand supplied, shipping and rolling-stock replaced, houses built, repairs made good, and so forth, this slow shrinkage of purchasing power in every country will go hand in hand with shrinkage of demand, decline of trade and wages, and unemployment, in a slow process, till they culminate in what one fears may be the worst "times" we have ever known. Whether those "times" will set in one, two, or even six years after the war, is, of course, the question. A certain school of thought insists that this tremendous taxation after the war, and the consequent impoverishment of enterprise and industry, can be avoided, or at all events greatly relieved, by national schemes for the development of the Empire's latent resources; in other words, that the State should even borrow more money to avoid high taxation and pay the interests on existing loans, should acquire native lands, and swiftly develop mineral rights and other potentialities. I hope there may be something in this, but I am a little afraid that the wish is father to the thought, and that the proposition contains an element akin to the attempt to lift oneself up by the hair of one's own head; for I notice that many of its disciples are recruited from those who in old days were opposed to the State development of anything, on the ground that individual energy in free competition was a still greater driving power.

      However

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