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 Ifi^AGES, Prices and 
 m Profits 
 
 A REPORT PREPARED BY 
 THE LADOUR RESEARCH DEPARTMENT 
 
 PREFACE BY 
 
 SIDNEY WEBB
 
 ^ 
 
 UNIVERSITY OFCAUFORNIA 
 LOS ANGELES
 
 WAGES, PRICES AND 
 PROFITS. 
 
 A REPORT PREPARED BY 
 THE LABOUR RESEARCH DEPARTMENT. 
 
 PREFACE BY 
 
 SIDNEY WEBB. 
 
 LONDON : 
 
 LABOUR RESEARCH DEPARTMENT 
 
 AND 
 
 THE LABOUR PUBLISHING COMPANY. LTD. 
 
 6, TAVISTOCK SQUARE, W.C.I. 
 January, 1922.
 
 LABOUR RESEARCH DEPARTMENT, 
 34, Ecclestoa Square, London, S.W.I. 
 
 Chainnan : 
 
 W. H. HUTCHINSON. 
 
 Hon. Secretary : 
 
 G. D. H. COLE. 
 
 Vice- Chairman : 
 C. M. LLOYD. 
 Hon. Treasurer: 
 A. L. BACHARACH. 
 
 Secretary : 
 R. PAGE ARNOT. 
 
 THE LABOUR RESEARCH DEPARTMENT is an 
 independent organisation composed of 85 affiliated Trade 
 Unions, 293 Trades Councils and Local Labour Parties, 
 315 Trade Union Branches, and other Labour and 
 Socialist organisations, together with members and 
 associates. It exists in order to conduct research and 
 enquiries into all social and industrial questions affecting 
 Labour from a Labour standpoint, to publish books, 
 pamphlets and periodicals on these subjects and to provide 
 information for answers to enquiries. For this purpose 
 the Department has accumulated, and is still collecting, a 
 unique collection of Trade Union and Labour documents 
 of all kinds, a Press-cutting system covering the whole 
 Labour field (including Labour abroad) and a library of 
 Government documents. Committees of Enquiry have been 
 set up to deal with Trades Councils and Local Labour 
 Parties, the organisation of capital and its effects on prices, 
 profits and the position of Labour, and many other sub- 
 jects. The results of the work of all these committees will 
 be available for the use of affiliated societies. Monthly, 
 the information collected by the Department is summarised 
 as far as possible and published in the MONTHLY 
 CIRCULAR, a copy of which is sent free to every 
 affiliated society. The CIRCULAR contains sections 
 dealing with Tiade Union News, Co-operative News, the 
 policy and actions of the Government, and the Local 
 Authorities, profits and other capitalist activities, legal cases 
 affecting Labour, and an International Supplement. 
 Terms of affiliation can be had on application to the 
 Secretary.
 
 ^ ^ 
 
 CONTENTS. 
 
 PREFACE. By Sidney Webb 5 
 
 •< 
 
 OC OHAPTSR 
 
 QQ 
 
 I. WAR WAGES 9 
 
 (1) The Course of War Advances. 
 
 (2) The Cost of Living Wage. 
 
 (3) The National Minimum Wage. 
 
 II. WAR PRICES 17 
 
 9 III. WAR PROFITS 28 
 
 to 
 
 o (1) The Interpretation of Share Prices, etc. 
 
 (2) The Inteepretatjon of Company Accounts. 
 
 IV. WAGES, PRICES AND PROFITS . . . . 37 
 
 V. THE ATTACK ON WAGES 40 
 
 SUMMARY OF CONCLUSIONS 45 
 
 cr Appendix I. WAGES 47 
 
 o Sources of Information. 
 
 en 
 
 3r Table L Rates of Wages in Various Industries 
 
 (1014-21). 
 
 Table 2. Percentage Advances for Representative 
 Classes of Workers in Various Industries 
 (1914-1920). 
 
 Note to Table I. 
 
 Note to Table II.
 
 Appendix II. PRICES 
 
 Sources of Information. 
 
 Table 1. Cost of Living Index, 1914-21. 
 
 2. Retail Food Prices, 1905-21. 
 
 3. Clothing Prices, 1915-21. 
 
 4. Value of £1 spent in Food, 1914-21. 
 
 5. Cost of Government Standard Working 
 Class Budget, 1905-21. 
 
 6. Wholesale Prices {Times Index), 1920-21. 
 
 7. Wholesale Prices (Various). 
 
 8. Variation in Purchasing Power. 
 
 9. Percentage Decline or Advance in 
 Purchasing Power. 
 
 PAGE 
 
 85 
 
 Appendix III. PROFITS 91 
 
 Sources of Information. 
 
 Table 1. Bonus Shares issued in 1920. 
 
 ,, 2. Cotton Spinning Profits. 
 
 ,, 3. Income Tax and Excess Profits Duty. 
 
 ,, 4. Share Prices. 
 
 ,, 5. Deposits of Pubhc Joint Stock Banks 
 in England and Wales, 1913-20. 
 
 ,, 6. Number and Nominal Capital of New 
 Companies, registered in Great Britain, 
 1913-20. 
 
 „ 7 . Number and Paid-up Capital of Companies 
 on the Register in Great Britain, 1910-19. 
 8. New Capital Applications, 1913-20. 
 
 Appendix IV. CHARTS 105 
 
 (1) Cost of Living. 
 
 (2) Cost of Food (Retail). 
 
 (3) Value of £1 in Food. 
 
 (4) Wages and Prices. 
 
 (5) Variation in Real Wages.
 
 PREFACE. 
 
 By Sidney Webb. 
 
 This book, in the compilation of which I have had no share, 
 but which has been prepared by various members of the Labour 
 Research Department, aims at no more than a presentation of 
 facts relating to wages, prices and profits in Great Britain during 
 the past seven years, so far as they can be ascertained. It sets 
 out, as simply as possible, such statistics as exist on the subject ; 
 together vtith some explanations necessary for their imderstand- 
 ing ; and, incidentally, certain criticisms of misleading inferences 
 that have been dAwn from them. 
 
 Much of the misunderstanding, it will be commonly agreed, 
 is due to the incompleteness and the lack of authority of the 
 information that is available. In the pubhc interest it is becoming 
 increasingly important that the secrecy in which so much business 
 enterprise is still shrouded should, so far as statistical tables are 
 concerned, be brought to an end. The conclusion is inevitable 
 that the nation ought to be provided \\dth more complete and 
 more authoritative statistics of the profits, salaries and wages 
 in all business enterprises for each year, ^s soon as it is ended. 
 Even if the facts are kept secret wdth regard to each firm or 
 company, the totals for each industry, and for profit-seeking 
 enterprise as a whole — whether of the sums allocated to the 
 rent of land, the reward of capital, the remimeration of manage- 
 ment and direction, depreciation and reserve funds, the increase 
 of the capital employed — ought to be as authoritatively ascertained 
 and as commonly kno\A'n as the totals of salaries and wages, or 
 as the number of the population. To an extent greater than is 
 commonly supposed all that is required is the authoritative 
 collection and tabulation of statistics that are already in 
 possession of various public authorities. 
 
 The material for the statistical tables required already exists 
 with regard to the very considerable aggregate? of the enterprises 
 of the Government Departments and the Local Governing 
 Authorities ; for the whole of the Co-operative Movement ; for 
 nearly all the business of the railways and ports ; for the life 
 assurance companies ; for the electricity undertakings ; and for 
 at any rate such of the gas undertakings as work under the 
 statutory shding scales connecting prices and dividends — these 
 accounting in the aggregate for probably a quarter of all the 
 capital of the nation. It would need only the shghtest of changes 
 in the existing statistical obligations to add to these the banks ; 
 the fire, marine and accident insurance companies ; the whole 
 coal-mining industry ; the entire business of cotton spinning and
 
 6 PREFACE. 
 
 manufacturing, which has passed completely into the joint stock 
 form ; practically the whole business of ship-owning and ship- 
 management ; and the remainder of the gas, water, cemetery, 
 cremation and tramway undertakings for which statistics are 
 not yet fully pubUshed. The extension of similar statistical 
 obligations to the rest of the 75,000 joint stock companies would 
 be but a small step. Leaving aside for the moment agriculture, 
 and, perhaps also retail shop-keeping (except in so far as these 
 are undertaken by the Co-operative Movement or by joint stock 
 companies), the statutory requirement of the necessary statistics 
 from every person or undertaking engaging in business for profit 
 and employing more than half-a-dozen workers, has become 
 necessary in the public interest. 
 
 The need for equally authoritative statistics as to prices ia 
 no less imperative ; and it could be met with no greater difficulty. 
 For many years the Government has collected, recorded, and 
 tabulated the weekly market prices of wheat. The Government 
 knows, in one or other of its departments, but does not tabulate, 
 the charges made for railway and tramway transport, the rates 
 charged for water, gas and electricity ; the prices of graves ; 
 the rents periodically returned by landlords in connection with 
 the local assessments and the Income Tax (Schedule A) as received 
 for land and houses, together with the charges made for all the 
 postal services, and the innumerable official fees. Materials are 
 available also for the prices of all Stock Exchange securities, and 
 for wholesale transactions in nearly aU important commodities. 
 But for retail prices, we are still dependent on incomplete, irregular 
 and largely xmofficial special enquiries. These need to be made 
 systematic, widespread and authoritative. For retail transactions 
 amounting to more than £250,000,000 annually, exact schedules of 
 retail prices actually charged could easily be obtained from the 
 1,400 societies (with 6,000 branch stores) of the consumers' co- 
 operative movement, which now extends into every county of 
 England, and to all but a half-dozen sparsely peopled counties of 
 Scotland and Wales. The couple of hundred multiple shop com- 
 panies, with about as many branches as the co-operative societies, 
 and possible nearly as large an aggregate turnover, could easily 
 furnish similar schedules. Probably as much as one-third in 
 amount of all the retail purchases of food stufifs by the four-fifths 
 of the nation's famihes who fall within the wage-earning class — 
 perhaps one-sixth of the total spendings of that clasb — are now 
 made through the fourteen hundred consumers' co-operative 
 societies and the couple of hundred multiple shop companies, 
 from the weekly records of which authoritative statistics of 
 retail prices could be compiled without any considerable expense. 
 These records could be supplemented by those of perhaps an 
 equal number of private shops in different parts of the kingdom. 
 It is sheer waste for the nation to go on quarrelling (with all the 
 tension and ill-feeling that this involves) about the relative gains
 
 PREFACE. 7 
 
 of landlords, capitalists and wage-earners, when the facts could 
 be impartially ascertained amd authoritatively promulgated, 
 year by year, with no insuperable difficulty and at relatively 
 trifling expense. It does not show much capacity to govern on 
 the part of our present administrators that the demand for further 
 and better statistics — for a whole generation pressed by the 
 pohtical economists, and always supported by the Trade Unions 
 — is still ignored. 
 
 Until such statistics of retail prices are regularly and 
 authoritatively compiled by pubhc authority, and promulgated 
 imder the supervision of a joint committee on which the Trade 
 Unions can nominate their own expert representatives, the 
 cost-of-living index number of the Government, which is subject 
 to some criticism in this book, will not inspire confidence in 
 working-class households, and the use of such an index number 
 in regulating advances or reductions of wage-rates, will not be 
 popularly accepted. For further discussion of this index number, 
 reference may be made to the Report of the Cost of Living of 
 the Joint Committee of the Parliamentary Committee of the 
 Trades Union Congress, the Co-operative Union and the Labour 
 Party (price 2s. 6d.) ; and to the newly-pubhshed volume, Prices 
 and Wages in the United Kingdom, 1914-1920, by Professor A. L. 
 Bowley (price 10s. 6d.), neither of \\hich came in time for use 
 of them to be made in the present work.
 
 Chapter I. 
 WAR WAGES. 
 
 (1.) — The Course of War Advances. 
 
 The matter of this chapter lies chiefly in the Tables of its 
 Appendix.* The figures given in Tables I. and II. do not pretend 
 to offer a comprehensive or complete survey of wages. They 
 relate only to workers in certain regulated trades. In unregulated 
 trades there is reason to suppose that wages rose in many cases 
 to a very small extent between 1914 and 1920. Information 
 collected by the National Amalgamated Union of Shop 
 Assistants and other Women's Unions show that large numbers 
 of unorganised women were employed at rates substantially lower 
 than £1 a week at the end of 1920, but in the absence of 
 established rates there is little or no material for a general 
 estimate. Nor do the figures cover the whole field of regulated 
 industry. They may, however, be taken as sufiiciently 
 exhaustive to indicate broadly the course of war advances for 
 the principal groups of workers in some important industries. 
 
 From Table I., first of all, it appears that the increase on 
 pre-war wages varies widely, not merely from one industry to 
 another, but between different groups of workmen, or various 
 districts, within the same industry. In almost every case the 
 figure of maximum war advances is below the normal of the 
 industry for special classes of higher-paid workers. For example, 
 the percentage is a comparatively low one for pattern-makers in 
 engineering, for steel or tinplate workers with base earnings above 
 60s. per week, for journeymen tailors in West End tailoring, for 
 correctors of the press in printing, for guards or ticket collectors in 
 railway transport, for forehands in bake-houses, or for the uj)per 
 grades of civil service clerks. The figure rises, on the other hand, 
 above the normal for such lower-paid sections as general labourers 
 or women. Labourers in building, in mines, in engineering, or in 
 the potteries, have received a proportionately higher rate of 
 advances than any other group in these industries. Operatives' 
 assistants in printing have gained a relatively greater advance 
 than operatives. Similarly, women have received on the whole 
 proportionately larger increases than men. There are equally 
 wide variations between different districts. So far as figures are 
 available, it is the smaU to\\'ns and outlying places which have 
 gained the greatest benefit from war advances. For example, in 
 building, the maximum percentage is higher in Exeter than in 
 Birmingham, and higher in Birmingham than in London. In 
 
 * See Appendix I.
 
 10 WAGES, PRICES, AND PROFITS. 
 
 mines, the advance is greater on the whole in Scotland than in 
 England and Wales. In engineering, it is greater in the small town 
 of Trowbridge than in any important industrial centre. In agri- 
 culture, the maximum advance for ordinary workers is llO per 
 cent, in counties with a high pre-war rate, but 245 per cent, in 
 counties with a low pre-war rate. In printing, it is the lower 
 grade towns which show everywhere the higher rate of advance. 
 Generally speaking it is true to say that the larger proportion of 
 war advances has been received by lower-paid workers, or by 
 workers in backward districts. 
 
 For purposes of comparison between one industry and another, 
 the plan adopted in Table II. has been to select a representative 
 class of workman, and a representative district for each industry. 
 For example, the bricklayer's rate in building relates, not only to 
 bricklayers, but to masons, carpenters and joiners, slaters, 
 plumbers, plasterers, and in some measure to painters. Similarly, 
 the fitter's rate in engineering covers turners, and sometimes 
 smiths and other classes of tradesmen. The selected rate in some 
 cases is a less obviously representative one, but every figure in 
 the table refers to a large and typical class of ordinary workers 
 in the industry. In regard to a representative district, London has 
 been selected in most cases for the sake of uniformity ; but, where 
 the industry is localised elsewhere, the choice has fallen on the 
 chief centre of the industry. Any method of selection is open to 
 criticism ; but, in the absence of established rates for all classes of 
 workmen, especially in the earlier period of the war, an estimate for 
 the average rate of the industry could not be other than a very 
 misleading one. It would not be difficult to prove that in indus- 
 tries employing large numbers of general labourers and women, or 
 where wages in most districts were unregulated until recently, the 
 average rate of war advances for the whole industry would show 
 a substantially higher figure than the one given in the table, but 
 it should be pointed out in this connection that the special 
 increases received by lower-paid workers, or in backward districts, 
 represent to a large extent advances of wages which were overdue 
 in 1914, and would have been granted irrespective of war con- 
 ditions. These special increases should not therefore be counted 
 as a part of war advances. 
 
 Bearing in mind the limitations of Table II., a comparison of 
 one industry with another shows a figure of war advances, which 
 in December 1920 ranges from less than 100 per cent, to over 200 
 per cent, in some cases for selected classes of representative work- 
 men. The figure is a comparatively high one in mines, and in the 
 South Wales steel and tinplate trades, where wages fluctuated 
 before the war with the selling price of the product, for railwaymen 
 and dock labourers, and in agriculture, where the pre- war standard 
 was below the normal level . Again there is a high rate in the cotton, 
 wool and textile dyeing industries, where the workers shared to 
 some extent in the wave of extraordinary trade prosperity which
 
 WAR WAGES. 11 
 
 followed immediately upon the armistice, in merchant shipping, 
 where war conditions not merely yielded enormous profits to the 
 shipowners but exposed the workers to exceptional risks, and a 
 high rate for some grades of civil servants and municipal 
 employees. The figure, on the other hand, is a low one in building, 
 in engineering, in hosiery, in the clothing trades, for pottery 
 workers and cigar-makers, and for workers in co-operative shops. 
 In regard to the latter class, the figure is about the same as that for 
 shop assistants employed by commercial firms which have adopted 
 the standard of the National Amalgamated Union of Shop Assis- 
 tants. In non-union commercial houses, not only the pre-war 
 standard was a very low one, but women's wages especially 
 remained throughout the war at an almost incredibly low figure. 
 The maximum percentage increase in other staple industries, 
 namely, in road transport, in furniture-making, in printing, and in 
 bread-baking, ranges from about 140 per cent, to about 155 
 per cent. A comparison between industries reveals broadly 
 speaking the same tendencies as the comparison between various 
 groups of workmen or various districts within the same industry, 
 and the progress was greatest in industries, such as agriculture or 
 railway transport, where the conditions were most backward at 
 the outbreak of war. 
 
 There was, however, everywhere comparatively little advance 
 of wages in the earlier period of the war. At the end of 1915 
 the increase did not generally amount to more than 10 per cent. 
 In railway transport, where advances of wages were overdue in 
 1914, the first year of the war saw an increase of about 20 per cent., 
 and comparatively substantial advances were received during 
 1915 and 1916 in mines and in the iron and steel trades, where 
 wages fluctuated habitually with the selling price of the product. 
 In the busy engineering and shipbuilding trades, which covered 
 the majority of munition workers, the end of 1915 showed an 
 advance of 17 per cent in the London district, and the figure rose 
 to 25 per cent, at the end of 1916. The end of 1915 did not, on the 
 other hand, bring any increase to cotton operatives, or to garment 
 workers, or to furniture-makers. The advance was generally at a 
 slow pace until 1917, but at the end of that year the figure had risen 
 in most industries to over 30 per cent., and to between 80 per cent, 
 and 90 per cent, in some cases. Increases followed with g^o^^^ng 
 rapidity, especially for backward groups of workers, until the 
 summer of 1920. Wages reached a maximum point in 
 engineering and in one or two other industries in June 1920, and 
 almost everywhere before the end of the year ; but, where negotia- 
 tions had been unduly protracted, or wages wore periodically 
 adjusted according to the variations in the Ministry of Ijvbour 
 index figure of the cost-of-living during the previous term, the 
 advance was continued into 1921. Between December 1920 and 
 June 1921, wages remained for the most part at a stationary figure, 
 or decreases had begun to take place, The latter adjustment
 
 12 WAGES, PRICES AND PROFITS. 
 
 followed automatically in some cases from the operation of 
 the cost-of-living sliding scale, but the matter involved elsewhere 
 prolonged negotiations, or disputes, and a settlement was not 
 reached until the end of June, or the new terms did not come into 
 operation until a later date. The important settlement for the 
 coal industry entailed a reduction of 2s., 2s. 6d. and 3s. per shift 
 respectively in July, August and September ; the engineering 
 agreement provided for two decreases of 3s. per week each to take 
 place in July and August ; the minimum wage of dock labourers 
 A\ as subject to a decrease of 2s. per day in August, with another 
 reduction to follow in January 1922 ; in the cotton industry, 
 there was an immediate fall of 60 points in the figure of war 
 advances ; while the wool and worsted settlement, apart from the 
 automatic decreases of 40 points under the cost of living sUding 
 scale, brought fresh reductions in July, amounting to about 
 fourteen per cent, on rates current in the previous December. 
 It seems that wages are slow to rise, but quick to fall. 
 
 (2.) — The CosT-OF-LiviNa Wage. 
 
 The absence of any extravagant rise of wages among the 
 better-paid and more highly-organised section of the workers was 
 not due to accidental causes, but may be traced, at least to some 
 extent, to the deliberate action of the Government. Under the 
 Munitions of War Act, 1915, which covered the greater part of the 
 engineering and shipbuilding trades and large numbers of workers 
 in other industries, not merely strikes were made illegal, but a 
 workman could be prevented by his employer who refused to grant 
 a discharge certificate from taking up fresh employment. The 
 latter provision was repealed during 1917, but thousands of 
 munition workers had already been checked in moving from one 
 firm to another in search of better conditions. While " the play 
 of natural forces " flung fantastic fortunes into the laps of army 
 contractors and ship-owners, wages were subject to artificial 
 regulation. Disputes were referred to arbitration, and settled 
 w ith due respect to pubhc economy. The Committee on Pro- 
 duction was the chief authority in cases affecting the whole or a 
 large section of the industry. " H.M. Government," the awards 
 stated in 1915 and 1916 " have given earnest attention to the 
 financial position of the country, to the great and increasing 
 demands which will still be made upon its resources to meet the 
 needs of the war, and to the imperative need for economy in all 
 forms of expenditure, both public and private. They have also 
 had regard to the general advances of wages that have already 
 been given since the beginning of the war, and to the measure 
 already taken to tax or limit the profits of undertakings. H.M, 
 Government have come to the conclusion that in view of the 
 present emergency any further advance of wages (other than ad- 
 vances following automatically from existing agreements) should 
 be strictly confined to the adjustment of local conditions where
 
 WAR WAGES. 13 
 
 such adjustments are proved to be necessary." Prices had mean- 
 while begun to soar up wildly. The excess profit tax was largely 
 evaded by employers, who were able to tuck away profits in some 
 form of capital outlay, or the tax was passed on to the consumer. 
 The yield of the excess profits tax went, moreover, largely in 
 relief of the capitalist tax-payer. Rich men grew richer, and 
 there sprang up a new class of war profiteers. The Committee 
 must have felt some compunction in trying to practice national 
 economy at the expense of poor classes of wage-earners. At all 
 events, the clause was afterwards withdraw7a. 
 
 The awards of the Committee on Production followed necessarily 
 to some extent the previous practice of the trade. In the iron 
 and steel industry, there was no interference with the sliding scales 
 by which wages were regulated according to the selling-price of the 
 product, and comparatively large advances were received in the 
 earlier years of the war, but agreements of this kind were confined 
 to one or two industries. * The awards laid down for the most part 
 that " the amounts here awarded are to be regarded as war 
 advances intended to assist in meeting the increased cost-of-living, " 
 or other words to the same effect. There was no general desire 
 on the part of the trade unions to take advantage of war conditions 
 unduly to force up wages. They accepted a policy by which wages 
 might be expected to keep pace with prices, while employers 
 favoured a method which in a period of high profits would tend to 
 keep down wages to a " fodder " level. When the first national 
 award for the engineering and foundry trades was under dis- 
 cussion in March 1917, the representative of the Engineering 
 Employers' Federation gav^e his views on this point to the Com- 
 mittee on Production. " Workpeople," he said, " were entitled 
 to advances only in compensation towards the increased cost of 
 living to which they were subjected. ... I think if we look 
 at the present application, not as an advance in wages, but as a 
 recompense or as compensation in respect of the extraordinary 
 expenditure, then we may get on very much better than we will 
 otherwise, because to admit for one moment that the rates should 
 be increased in order to moot an extraordinary position of affairs 
 such as we have now is a })f)siti<)n which we cannot take, but we 
 are quite prepared to admit the question of compensation." As 
 a matter of fact, the workers in the engineering and foundry trades, 
 other than labourers, did not recoivo at any time full compensation 
 for the rise in {)ric('s, and the maximum figure of war advances 
 stood many points below the highest index number of the cost- 
 of-hving. The national awards of the engineering and foundry 
 trades were immediately extended to shipbuilding, and the 
 amounts therein granted largely doterminod the course of war 
 advances in transport, and other staple industries. 
 
 Towards the end of the war a movement was started for the 
 automatic regulation of wages by means of cost-of-living sliding 
 * In the Ititor years the price was deliberately kept down.
 
 14 WAGES, PRICES AND PROFITS. 
 
 scales. The method originated in the textile dyeing and bleaching 
 trades, and nearly one-and-a-half millions of workers were covered 
 by such agreements at the end of 1920. The general principle was 
 that a given rise or fall in the Ministry of Labour cost-of-living 
 index number should be followed by a corresponding increase or 
 decrease in rates of wages. Some agreements provided for a 
 periodical revision at stated intervals, the new wage rate being 
 based on the cost-of-living index figure in the previous period, 
 while the revision in other schemes took place at every occasion 
 upon which the cost-of-living index figure rose or fell by a specified 
 amount. Wages and prices were hereby mutually adjusted, but 
 the full wages equivalent of the cost-of-living index number 
 was not generally received by higher-paid workers. For example, 
 in the woollen industry, piece-workers received a reduced percen- 
 tage of advances, while in the case of time-workers the amount of 
 the basis wage to which the percentage might be applied did not 
 exceed 34s. 6d. per week, or 80 per cent, of the basis wages, which- 
 ever sum was the greater. Similariy, under the civil service 
 scheme, all amounts over a basis salary of 35s. per week carried 
 a reduced scale of war bonus. Nor did the workers succeed by 
 this means in keeping wages fully abreast of prices, but the advance 
 always followed behind and never went before the rise in the cost- 
 of-living. In some cases, indeed, one rate lagged so far behind 
 the other that an advance of wages took place when the cost-of- 
 living had for several months begun to decline. 
 
 (3.) — The National Minimum Wage. 
 
 The pohcy of focussing attention on the rise in the cost-of- 
 living, by which all workers alike were affected, had indirectly the 
 effect of promoting a policy of national awards and settlements. 
 This tendency may be traced in the engineering and shipbuilding 
 trades. The earlier awards of the Committee on Production 
 related only to individual firms or to ceri^ain districts, and the 
 amounts varied with the local circumstances, but the Committee 
 decided in March, 1917, to consolidate all previous awards in a 
 minimum national advance of 7s. a week, and upon this sum to base 
 future advances. ' ' Those who had received less than 7s., and 
 those receiving more than 7s.," employers claimed " should 
 remain where they were," but, " any general advance on account 
 of increased cost-of-living should be one sum." The trade unions 
 maintained on their side that " special consideration should be 
 given to districts which had not received 7s. advances in wages 
 during the war period," and this view was now adopted by the 
 Committee. A supplementary agreement between the Engineering 
 Employers' Federation and the engineering unions provided that 
 " the unions shall not be prevented from bringing forward for special 
 consideration the case of any district in which they claim that the 
 rates of wages are unduly low. ' ' Similariy, in the mining industry, 
 wages varied before the war with the selling price of coal, and the
 
 WAR WAGES 15 
 
 miners in certain districts would at one time have been entitled 
 to receive very large advances of wages, but these districts elected 
 to come in with the rest and to promote a more equitable distribu- 
 tion of the surplus among the miners and consumers as a whole. 
 The attention of all sides was directed to the needs of lower- 
 paid workers upon whom the cost-of-living pressed with the 
 utmost severity. Representatives of the general labour unions 
 pointed out to the Committee on Production the unfair operation 
 of a mere percentage advantage. " It gives," they stated, " a 
 huge preference to the higher-paid men, whereas in the case of 
 labourers with an average of 30s. it does not come out at all in 
 their favour." In the engineering and shipbuilding trades and 
 other great industries, war advances took the form of a flat 
 rate money amount, which had automatically the effect of level- 
 ling up wages for lower-paid workers. The same result was 
 achieved elsewhere by a graduated scale of percentage advances. 
 The various provisions of the cost-of-Uving sliding scales, which 
 limited the amount of the basis wage to be subject to war bonus, 
 have already been described. In the South Wales steel and tin- 
 plate trades, there was at one time a difference of fifty points 
 between the highest and the lowest percentafre increase received 
 by different grades of workers, while the exchange from a 12-hour 
 to an 8-hour shift entaUed no loss of wages in respect of basis 
 earnings under 50s. a week, but a graduated scale of reductions 
 amounting to 33 J per cent, in the case of higher-paid workers. In 
 the civil service there was not merely a substantially reduced 
 bonus on the amount of salary above a certain figure, but badly- 
 paid classes of women received special increases. Among com- 
 mercial clerks it was usual under awards of the Committee on 
 Production to fix an income limit above which the war bonus 
 should not be paid. For example, where clerks in munition 
 factories received the 12J per cent, on gross earnings, this bonus 
 was made" payable on salaries up to and including £150 a year." 
 but, " to those who may be in receipt of more than £150 a year the 
 bonus of 12| per cent, is to be paid on that amount." The income 
 limit was raised to £250 in 1918. The policy sometimes adopted 
 by the Committee on Production in regard to workers coming 
 under the Trade Boards Act, showed a similar trend. The awards 
 relating to the tailoring trade provided that " the advances were 
 independent of any increases in rates which may be necessitated by 
 a determination of a trade board," but, where firms had given 
 advances " either voluntarily or as a result of arbitration such 
 advances shall merge in the advances given in the award." In 
 other cases where advances of wages were admittedly overdue in 
 1914, account of the fact was taken in the agreement of award. 
 The Sankey award in the ca.se of the miners, or the revised standard 
 rates of railwaynien, were expressly granted with the object, not 
 merely of meeting the rise in the cost-of-living, but of bringing up 
 pre-war wages to a decent level of subsistence.
 
 16 WAGES. PRICES AND PROFITS. 
 
 There was a corresponding movement to establish minimum 
 rates of wages in hitherto unregulated trades. The Government 
 was gravely concerned in the speeding up of output in munition 
 factories and it was increasingly evident that good results could not 
 be obtained from half-starved workers. " The Government will 
 see to it," Mr. Lloyd George declared in 1915, " that there is no 
 sweating in Government workshops." The matter was taken up 
 by the trade unions, and in response to their agitation national 
 minimum rates for semi-skilled men and women munition workers 
 were fixed by statutory orders under the Munitions of War Act, 
 early in 1916. The Government next turned its attention to the 
 improvement of food supplies ; and, under the Corn Production 
 Act, an agricultural wages board was set up in 1917, and minimum 
 rates were agreed for agricultural labourers, who had hitherto 
 received indefinitely low rates of wages. The new minima varied 
 according to local conditions, but wages were levelled up so that the 
 lowest general rate in England and Wales covered some thirty-five 
 counties at the end of 1920. Again in 1919, when employers were 
 eager to take advantage of the trade boom immediately following 
 the armistice, the trade unions succeeded with comparatively 
 little difficulty in establishing minimum rates in a number of 
 important industries which were practically unregulated before 
 the war. Under the typical national agreement of the printing 
 trades, which covered all classes of workpeople, towns were 
 classified into a London district and six provincial grades, and a 
 minimum rate was fixed for each grade. Joint industrial councils, 
 and other national machinery for fixing wages were set up in one 
 industry after another. There was formed a National Industrial 
 Conference l^rovisjonal Committee, representing employers and 
 workers, and both sides were unanimous in recommending the 
 enactment of a legal eight-hour day, and the fixing of a minimum 
 wage for each industry — proposals, however, which the Govern- 
 ment refused afterwards to carry into effect. Under the Industrial 
 Courts Act, an Industrial Court was set up with special powers of 
 enquiry into industrial conditions. Simultaneously, there was a 
 rapid development under the Trade Boards Acts. Not only did 
 advances of wages under the Act represent comparatively large 
 amounts, but the Amending Act of 1918 provided for the setting up 
 of boards in any trade where the Minister of Labour " is of the 
 opinion that no adequate machinery exists for the effective regu- 
 lation of wages throughout the trade." The amendment went 
 substantially beyond the terms of the principal Act, whose 
 operation was limited to trades " where wages were exceptionally 
 low as compared with that in other employments." Some forty 
 new boards were set up in 1919, and it was promised that between 
 fifty and sixty others should foUow immediately — a promise which 
 unfortunately did not mature. Apart from mere compensation 
 for increased cost-of-living, the worker's main achievement 
 diiring the war was to redeem large tracts of industry from the 
 area of unregulated and " sweated " trades.
 
 Chapter II. 
 
 WAR PRICES * 
 
 To labour the obvious is an unprofitable pursuit, and it would 
 seem to be nothing else to cover page after page with arguments 
 and figures proving that it costs the worker nearly three times 
 as much as it did in pre-war times to maintain the pre-war 
 standard of life. It is so obvious, so glaring a fact, to the house- 
 wife, that this section need not be long drawn out. 
 
 But the Government issues its own version of the case and gives 
 its own estimate of the trouble, and on that version is based the 
 Government's and the employers' policy whenever a demand is 
 made for higher wages. It is therefore very necessary that we 
 should examine these figures for ourselves and find out whether 
 they give a true representation of the facts. If Mrs. Jones finds 
 she needs £2 10s. where £1 sufficed in 1914, it is of little use for 
 the Government to assure her that prices have only gone up 
 100 per cent. — on paper. We must have the true facts and figures 
 to put against the official distortions and mis-representations. 
 
 The first necessity is a definition of the terms we use, particu- 
 larly of the term " cost of living " which is so much in e\idence 
 to-day. To the ordinary man and woman the phrase " rise in 
 the cost of living " means just what it says — the increase in the 
 amount of money necessary to secure the same standard of life 
 that was obtained in pre war days. But our official experts have 
 ingeniously found another meaiung for it altogether. Clever 
 Professor Bowley and the Working Classes Cost of Living Com- 
 mittee 1918, could not use such an obvious definition. Instead 
 they defined the " rise in the cost of living " as the increase in 
 actual expenditure by the worker's family in 1918 as compared 
 with 1914, (and even then the expenditure on several important 
 items was deliberately excluded). Thus it is not surprising that 
 they found the " rise in cost of living " to be much le.ss than was 
 commonly asserted. After all you cannot spend money you have 
 not got. Presumably if the price of everything went up so 
 enormously that the worker could not even buy a loaf of bread, 
 and he consequently spent nothing, Prof. Bowley would say that 
 the cost of living had gone down to nothing ! 
 
 By " rise in the cost of living " we mean " rise in the cost of 
 maintaining at least the same standard of life." Let the impli- 
 cations of this be well understood. The same standard of life is 
 not maintained if margarine is substituted for butter ; apart from 
 questions of personal preference, margarine has not the same 
 
 * For Tables and Charts see Appendix II. and IV. 
 
 17 8
 
 18 WAGES, PRICES AND PROFITS. 
 
 dietetic value as butter. Similarly the same standard is not 
 maintained if foreign meat is substituted for English, shoddy for 
 wool, cardboard for leather, saccharine for sugar, stone for coal ; 
 nor is it maintained if books, theatres, concerts and all other 
 necessities of intellectual life are dropped or curtailed. In the 
 case of most workers, as a matter of fact, substitutions were im- 
 possible for they were already compelled to buy the cheapest goods 
 obtainable, but it has to be remembered that in many instances 
 the cheapest commodities obtainable now are much inferior in 
 quality, though much more expensive, than the cheapest pre-war 
 varieties. For example, pre-war margarine at 6d. was better 
 than the present-day margarine at Is. To keep the same standard 
 a family using, not butter, but the cheapest margarine, in 1914, 
 would have to buy not the cheapest margarine of to-day, but a 
 higher priced one. There is no evidence that this has even been 
 considered by the official calculators of cost of living statistics. 
 Another fact which should not be forgotten, though it cannot be 
 statistically estimated, is the almost total disappearance, under 
 stress of shortage and rationing, of the " bargains " which on 
 street stalls and the counters of small shops used to ofiFer to the 
 poor housewives a chance of stretching the resources of an almost 
 empty purse. The bargain stall, like the West End bargain 
 sale, became little more than a memory. 
 
 Thus, to compare present prices with pre-war prices, we 
 must take the same quantities of each commodity and the same 
 quality. If the same quality is not obtainable at all, it must be 
 made up for in some way, but in point of fact the same quality can 
 be secured in every instance with which we have to deal, except 
 housing which constitutes a peculiar problem of its own. 
 
 When we come to consider the best means of finding the in- 
 crease in the cost of living, as above defined, we are faced with 
 difficulties. Are we to conduct an independent enquiry covering 
 the whole country to find the present and pre-war prices of the 
 commodities under consideration, or shall we take the figure 
 supplied by the Ministry of Labour ? The former plan is really 
 the only completely satisfactory method, but it has two great 
 objections. The first is the matter of expense and time such an 
 enquiry would entail, and this really puts it out of court, for the 
 present. The second is that there would be no common accept- 
 ance of the figures, any more than there now is of the Govern- 
 ment's figures.* 
 
 The objection to taking the Ministry of Labour figures is that 
 they are under general suspicion of not being a true representation 
 of the facts. It seems best, then, to examine these statistics, as 
 given in the Labour Oazette each month, to find if possible whether 
 they are correct, and finally to take them as the basis and to show 
 how, even accepting Government figures, the cost of living has 
 
 ♦ See below for the enquiry undertaken early in the war by the Joint 
 Committee on the C!ost of Living.
 
 WAR PRICES. 19 
 
 risen since 1914. If we find the figures inaccurate and can reach a 
 quantitative result which can also be embodied in statistics and 
 charts, we have a still clearer idea of the rise. And if we can 
 find any alternative method of showing the increase, so much the 
 better. 
 
 Calculation of Prices and Commodities. 
 
 Before dealing directly with the Labour Gazette statistics, it 
 wiU be as well to consider the matter generally. In calculating 
 prices we are confronted with several difficulties, the principal one 
 being to devise a method which will show us briefly and cleariy 
 what we want to know. 
 
 If for example we take a definite commodity and ascertiain the 
 price of a ceri^ain quantity of it at different times, that only 
 tells us about the one thing and gives no clue to the general change 
 in prices. 
 
 We might take instead a 
 
 Family Budget, i.e., the actual amounts of all the commodities 
 bought by a family in any period of 1914 and the same amounts of 
 the same things in 1920, comparing their price. An example will 
 be given later. This method, though easily understood, is not 
 really a scientifically accurate picture of price fluctuations in 
 general, because every family is different from every other family, 
 and every week is different from every other week. We should 
 really get rid of accidental features and individual pecuUarities 
 by taking a very large number of family budgets and getting the 
 average. This is practically what is done in the Index number 
 method. 
 
 Someone may say, why not find the cost of, say 1 lb. of each 
 commodity at the begirming and at the end of the period and so 
 find the rise ? This would be simple and easy to understand. 
 It would not give a true idea of the increase in the cost of living, 
 however. If 1 lb. of tea rises in price from Is. 6d. to 2s. 6d., we do 
 not know what effect this has on the family budget unless we know 
 how much tea is used in a given time. So, a rise of 6d. per lb. is far 
 more important in the case of margarine than it is for coffee, 
 because more margarine is used per week. Is. per lb. on tea might 
 mean an extra 3d. per week on to expenses, while Is. per lb. on 
 meat might mean 2s. or 3s. extra on the weekly budget. Thus the 
 relative quantities of commodities used must be taken into 
 account. The way in which this is done to produce Index numbers 
 is briefly explained here. It is the method used to obtain the 
 Ministry of Labour statistics which are given in the Labour Gazette 
 each month. 
 
 Index Numbers. — First of all a list of the commodities entering 
 into the family budget is made out. There are sure to be some 
 commodities which only very few families buy, and these are 
 ignored ; only the ones which commonly make up the bulk of 
 the budget are included. Thus there may be a few families
 
 20 WAGES, PRICES AND PROFITS. 
 
 which have acquired a taste for, and wdll obtain at all 
 cost, the Chinese delicacy of birds' nests, or French 
 snails ! Obviously such things must be omitted. The next 
 step is to ascertain the prices in 1914 and now, of these 
 commodities in as many towns, villages and rural districts 
 as possible, and to average the result for each commodity. 
 From these figures, the percentage increase in price for each 
 commodity is calculated. Third, we must determine the relative 
 importance to be given to each commodity. For each one a 
 number is given representing its importance. For instance we 
 might start with cheese and give it the number 1. Then if, on the 
 average, a family spends five times as much on bread as it does on 
 cheese, per week, we should give bread the number 5, and so on 
 for all articles. These numbers are called weights. In our calcu- 
 lation bread should " weigh " five times as much as cheese ; a 
 rise in the price of bread is five times as serious as the same rise 
 in the price of cheese. Therefore, the percentage increase in 
 price for each commodity is multiplied by its " weight," the results 
 are added, and this total is divided by the sum of all the" weights." 
 The final result gives the average increase in price of all the 
 commodities taken. 
 
 A simple example will make it clearer. Taking imaginary 
 figures : — 
 
 " Weight " Percentage " Weight " by 
 
 increase in price . percentage increase . 
 Cheese ..1 130 130 
 
 Bread ..5 150 750 
 
 880 
 
 6 
 
 6 880 
 
 = 146^% average increase of both articles. 
 
 If five times as much were spent on cheese as on bread, the 
 result would be : — 
 
 " Weight." Percentage " Weight " by 
 
 increase in price, percentage increase. 
 Cheese ..5 130 650 
 
 Bread ..1 150 150 
 
 6 800 
 
 800 
 
 ^= 133^% average increase of both articles. 
 
 6 
 
 Thus, the more important article has proportionately greater 
 influence on the final average. When this process is carried out 
 for all commodities that matter (including of course clothing, fuel, 
 rent, etc.) the final figure is the average percentage rise in the cost 
 of living.
 
 WAR PRICES. 21 
 
 If now we take one particular year as our starting point, or 
 " base," and compare each succeeding year with the base year, 
 we get a series of Index numbers. 
 
 The number for the base year is taken as 100, for convenience, 
 and as the average cost of living is above or below the average in 
 the base year, the Index number is above or below 100. 
 
 Suppose we took 1920 as the " base " year and suppose the 
 cost of living in each of the following years were double that of 
 the previous year. The Index numbers would be : — 
 1920 1921 1922 1923 1924 1925 
 
 100 200 400 800 1600 3200 
 
 If we take a more likely series, we have, for example : — 
 
 1905 1906 1907 1908 1909 1910 
 
 100 98.94 101.85 104.3 104.4 106.1 
 This means that the cost of living in 1906 was slightly lower 
 (1 per cent.) than in 1905, and that the cost in 1910 was decidedly 
 higher (6 per cent.) than in 1905. It also tells us that the cost of 
 living rose steadily from 1906 to 1910. So, if we spent £100 on 
 the necessaries of life in 1905, the same commodities would cost 
 £104 8s. in 1909. and £106 2s. in 1910. 
 
 Now the whole trouble with Index numbers is this. Their 
 meaning is not immediately obvious to the ordinary man and he 
 has no means of knowing whether they have been correctly calcu- 
 lated, even it he does understand their significance. 
 
 There are many points on which there is opportunity for 
 difference of opinion and for judicious selection. The factors on 
 which the calculation of Index numbers depends are as follows : — 
 
 (1) Extent and area of enquiries. 
 
 (2) Method of finding prices of commodities. 
 
 (3) Wholesale or retail prices. 
 
 (4) Selection of commodities to be included. 
 
 (5) Allocation of weights to different commodities. 
 
 It is commonly assumed by critics of the official statistics that 
 the fourth item is the most important by far, and that it is an error 
 in this particular factor which is responsible for unreliable Index 
 numbers. As a matter of fact, provided a sufficiently large 
 number of articles are taken, say forty, the inclusion or exclusion 
 of particular items will not affect the rosults unless those items are 
 responsible for a fairly large proportion of the expenditure, or they 
 differ very %videly from the average. 
 
 Any particular item of food, for exam})le, which does not play 
 a great part in the dietary, or which has not risen or fallen in price 
 to an extraordinary extent, will not materially affect the result. 
 A really important item like clothing, however, does matter if 
 its rise or fall is much more or less than the average rise or fall. 
 
 The most important sources of error are, in our opinion, in the 
 second and fifth factors.
 
 22 WAGES, PRICES AND PROFITS. 
 
 Taking the above points in order. 
 
 1. Enquiries should be conducted only in working-class 
 districts. It is not quite clear what interpretation the Ministry 
 of Labour places on the term " working-class districts." The 
 second factor bears on this. 
 
 2. The official method of questionnaires for obtaining infor- 
 mation as to prices is not altogether satisfactory. We should 
 like to know more about the selection of retailers to whom 
 enquiries are sent. It is quite certain that the figures sent in do 
 not always represent the true facts as far as working class people 
 are concerned. Everyone knows that prices differ widely from 
 shop to shop in the same district. Does the Ministry of Labour 
 take the cheapest shops as the standard ? The housewife cannot 
 scour the town for the cheapest shops ; she has not, hke some 
 people, unlimited time, and she has children to look after. 
 
 Certainly we have all seen official statements that commod- 
 ties can be bought at certain prices and we know that it is not so, 
 that the actual prices one has to pay are higher. Where do the 
 figures originate ? 
 
 The Times, of June 8th, 1920, quotes the following instances 
 of price difference for identical articles in Hford. 
 
 Lowest. Highest. More. 
 
 Irish Bacon 
 
 2/9 
 
 3/3 
 
 18% 
 
 Starch 
 
 9 
 
 1/4 
 
 77% 
 
 Tinned Salmon 
 
 . 1/9^ 
 
 1/11 
 
 7% 
 
 Corned Beef 
 
 . 1/2 
 
 1/6 
 
 28% 
 
 Currants 
 
 6 
 
 v- 
 
 100% 
 
 Fruit Salad 
 
 1/1 
 
 1/4 
 
 23% 
 
 Tongue (cooked) 
 
 4/4 
 
 5/- 
 
 16% 
 
 Does the Labour Ministry take this into account ? It is 
 very unlikely. It is a matter of common knowledge that small 
 shops, often on the verge of insolvency, charge higher prices 
 for groceries, coal, etc., than the large city establishments 
 patronised by the well-to-do. Coal is often sold in small 
 quantities to working-class people at exorbitant prices and 
 those who cannot order a ton or half a ton at a time have to 
 put up with this state of affairs. 
 
 Again, it is quite certain that comparative prices are not 
 quoted for the same quality. Margarine is a case in point. The 
 cheapest margarine is very much inferior to the cheapest pre-war 
 margarine. The worst pre-war coal contained much less slate 
 and stone than some of the medium varieties to-day. 
 
 In some cases a standard of quality has been deliberately 
 abandoned, and the poor variety has continued to figiire in 
 official price lists without any allowance being made. Once more 
 we may quote margarine. The controlled price of margarine 
 manufactm-ed to a specified (compulsory) standard of quality was
 
 WAR PRICES. 23 
 
 fixed after a costs investigation. When control was removed, 
 the quality went down tremendously, the price went up. The 
 Ministry of Labour no doubt took cognisance of the latter change 
 but not of the change in quality. 
 
 In finding the price of clothing the official method is very 
 faulty. Normally material only is considered, not the price of 
 making up. The plea is that the price of making up varies in 
 much the same way as the price of materials. 
 
 Now they have the impudence to make a deduction from the 
 enormously swollen prices of materials because they say the 
 price of making up has not risen to the same extent. What about 
 the large amount of working-class clothing made up at home ? 
 In this case the rise is precisely the rise in the cost of materials, 
 not forgetting sewing cotton with its 400 per cent. rise. 
 
 Everyone knows that clothing made up in shops has risen by 
 at least 250 per cent., and clothing accounts for at least one-eighth 
 of the whole family expenditure. 
 
 The Rents Increase Act has meant considerably more than 
 the 30 per cent, rise which it at first sight seems to impose. The 
 housing shoriiage has led to an enormous number of people having 
 to take furnished rooms, at exorbitant rates, or on the other hand 
 to suffer a great deterioration in accommod ition. Has this been 
 allowed for ? The deterioration in accommodation has led to 
 further expenditure on fares, since many people cannot live near 
 their work, and on amusements since there is no real home life. 
 
 In short, there is no evidence that the Ministry of Labour 
 have found the real increases in the various commodities 
 included, nor that they have compared commodities of the 
 same quality. 
 
 3. Wholesale or Retail Prices. — Retail prices should be taken : 
 the Ministry of Labour does so.* All newspaper talk of falling 
 prices, is, when it refers to wholesale prices, valueless. The house- 
 wife does not buy goods wholesale, and we are seeing that whole- 
 sale prices may drop while retail prices remain stationary or even 
 rise. 
 
 4. Selection of Commodities. — On the whole, the list is suffi- 
 ciently comprehensive. 
 
 6. Weights. — The official calculation of weights is based on 
 the family budget enquiry of 1904 — nearly twenty years ago. 
 It is pretty certain that clothing accounts for more than the 12 per 
 cent, allowed, and, in view of this and all the other changes in 
 working-class expenditure during the last twenty years, it is 
 obvious that a new allocation is necessary to-day. 
 
 * The Cost of Living Index on which so many wage sliding scales are 
 based is often referred to as the Board of Trade Indox. This is quite wrong. 
 The Board of Trade has an Index number for Wholesale Prices, but this is 
 of no value for our purpose.
 
 24 WAGES, PRICES AND PROFITS. 
 
 The official proportions given are : — 
 
 Food, 60 per cent. ; Rent and Rates, 16 per cent. ; Clothing, 
 12 per cent. ; Fuel and Light, 8 per cent. ; other items, 4 per 
 cent. These figures represent the official estimate of the per- 
 centage of the " working man's " income spent on the various 
 items. The weights given are, therefore, Food, 15 ; Rent and 
 Rates, 4 ; Qothing, 3 ; Fuel and Light, 2 ; Sundries, 1. This 
 estimates that clothing, furniture, household utensils, papers, 
 fares, beer, amusements, soap, tobacco, etc., account altogether 
 for only 16 per cent, or 4/25 of the family expenditure. This 
 is undoubtedly very wide oj the mark, and it is significant to note that 
 it is just these items, or the majority of them, that have gone up most 
 in price. These items, as a whole, have certainly risen by 
 250 per cent. 
 
 Note the difference this makes. If we accept the official 
 weights, we have, say, 
 Food . . . . 15 (weight) ; 120 (rise) gives 1800 
 Rent .. .. 4 „ 40 „ „ 160 
 
 Fuel and Light . . 2 „ 150 „ „ 300 
 
 Clothing, etc 4 „ 250 „ „ 1000 
 
 25 3260 
 
 Average rise = 130 per cent. 
 
 If we allocate the weights more in accordance with the actual 
 conditions we may get 
 
 Food .. .. 13 120 = 1560 
 
 Rent .. .. 4 40 = 160 
 
 Fuel and Light . . . . 1| 150 = 225 
 
 Clothing, etc 6| 250 = 1625 
 
 25 3570 
 
 Average rise = 143 per cent. 
 
 To sum up, it may be said that at present we have no satis- 
 factory Cost-of -Living Index number, and we have no satisfactory 
 basis for its compilation. 
 
 Additional evidence throwing more light on the actual 
 conditions is given below, but we may repeat that the tables and 
 graphs appended are, for reasons already stated, on the basis 
 of the official numbers. 
 
 Wholesale Index numbers as given by The Times, The 
 Economist, etc., should be disregarded, as they give no clue to the 
 movements in retail prices, and these after all are the only prices 
 which concern the housewife. 
 
 Family Budget. — Though of limited value for statistical pur- 
 poses, family budgets show clearly the real meaning of the increase 
 in the cost of living to the workers.
 
 WAR PRICES. 
 
 25 
 
 It is worth repeating here that it is generally the cheapest 
 foods that have risen most and that the workers are generally 
 unable to effect economies by falling back on substitutes or 
 cheaper qualities, since these were already in use. For example 
 cheaper qualities of beef and mutton (used exclusively by the 
 workers) rose 120 per cent, and 133 per cent, respectively up to 
 April, 1918, while the dearer varieties rose 80 per cent, and 
 73 per cent, respectively. Frozen beef and mutton (also used 
 only by the workers) rose 145 per cent, and 167 per cent, respec- 
 tively. In this way the working class family was hit harder tlian 
 the well-to-do family. Also as there was no money for luxuries, it 
 was impossible to economise by cutting out luxuries. 
 
 A specimen family budget is given, with the actual cost of the 
 articles in 1914 and 1920 (June). The same quantities are taken 
 in both cases. 
 
 
 August, 1914. 
 
 June, 1920. 
 
 
 8. 
 
 d. 
 
 s. d. 
 
 Bread 
 
 2 
 
 9 
 
 3 loaves per day 
 
 . 11 
 
 Margarine 
 
 '. 1 
 
 4 
 
 4 lbs. 
 
 
 6 
 
 Tea 
 
 1 
 
 
 
 1 lb. 
 
 
 3 
 
 Sugar 
 
 
 7 
 
 4 lbs. 
 
 
 4 8 
 
 Tinned Milk 
 
 1 
 
 2 
 
 4 tins. 
 
 
 5 6 
 
 Coal 
 
 2 
 
 
 
 3 cwt. 
 
 
 8 
 
 Firewood 
 
 
 2 
 
 10 
 
 Rent 
 
 5 
 
 
 
 6 11 
 
 Soap 
 
 
 4 
 
 2 lbs. 
 
 
 1 10 
 
 Soda 
 
 
 2 
 
 3h lbs. 
 
 
 7 
 
 Matches 
 
 
 1 
 
 6 boxes 
 
 
 6 
 
 Tobacco 
 
 
 11 
 
 i lb. 
 
 
 2 8 
 
 Blacking 
 
 
 1 
 
 1 tin 
 
 
 ^ 
 
 Potatoes 
 
 
 10 
 
 14 lbs. 
 
 
 2 8 
 
 Onions 
 
 
 2i 
 
 2 lbs. 
 
 
 7 
 
 Carrots, etc. 
 
 
 3 
 
 4 lbs. 
 
 
 2 8 
 
 Cabbage 
 
 
 1 
 
 1 
 
 
 9 
 
 Leg of Mutton 
 
 5 
 
 
 
 (same weight) 
 
 14 4 
 
 Boiling piece 
 
 2 
 
 
 
 (same weight) 
 
 4 6 
 
 Fish 
 
 
 6 
 
 3 lbs. hake . . 
 
 4 6 
 
 Rice 
 
 
 2 
 
 1 lb. 
 
 6 
 
 Sago 
 
 
 2 
 
 1 lb. 
 
 7 
 
 Lard 
 
 
 3h 
 
 1 lb. 
 
 1 8 
 
 Sundries 
 
 
 8 
 
 
 2 3 
 
 
 £1 5 
 
 9 
 
 £4 6 10.^ 
 
 This gives an increase of £3 Is. 1 M. on £1 5s. 9d., or237 percent. 
 
 According to the Labour Gazette the increase should have boon 
 150 per cent. " Should have been " and" Was " are two different 
 things !
 
 26 
 
 WAGES, PRICES AND PROFITS. 
 
 A grocer 
 
 gives 
 
 the foUomng 
 
 comparisons (Working-class 
 
 District) : — 
 
 
 
 
 
 
 
 
 
 1914. 
 
 
 1920. 
 
 Percentage 
 
 
 
 8. d. 
 
 
 8. 
 
 d. 
 
 Increase. 
 
 Sugar 
 
 
 If 
 
 
 1 
 
 2 
 
 700% 
 
 Tea 
 
 
 .ls.2d.-l 8 
 
 28. 8d 
 
 -3 
 
 6 
 
 130% 
 
 Rice 
 
 
 2 
 
 
 1 
 
 
 
 500% 
 
 Cheese 
 
 
 9 
 
 l8.8d 
 
 -2 
 
 
 
 140% 
 
 Biscuits 
 
 
 7 
 
 
 1 
 
 11 
 
 230% 
 
 Condensed Milk . 
 
 5i 
 
 
 1 
 
 H 
 
 200% 
 
 Peas 
 
 . 
 
 2 
 
 
 
 8 
 
 300% 
 
 Lard 
 
 
 . 6d.- 8 
 
 
 1 
 
 8 
 
 230% 
 
 Ham 
 
 
 10 
 
 
 
 
 220% 
 
 Soap 
 
 . 
 
 3i 
 
 
 
 
 340% 
 
 Potatoes 
 
 (14 lbs.) 7 
 
 
 2 
 
 6 
 
 400% 
 
 Flour 
 
 , 
 
 1 9 
 
 
 4 
 
 
 
 130% 
 
 Irish Eggs (1 doz.) 
 
 1 2 
 
 
 
 
 200% 
 
 Salmon (tin) 
 
 • 
 
 10| 
 
 
 2 
 
 1 
 
 140% 
 
 The Labour Gazette figure for May, 1920 was 141 per cent. The 
 Labour Gazette itself spoke of clothing being 320 per cent, to 330 
 per cent, dearer than in July, 1914. This was in May, 1920. 
 
 Sir L. C. Money has calculated the expenditure which keeps 
 the worker's famOy on the " poverty line," that is to say all below 
 the figure must be classed as " poverty " which the " new era " 
 was to abolish for ever ! The details are : — 
 
 Jan. 
 
 
 
 1914. 
 
 
 £ 
 
 8. d. 
 
 Rents and Rates 
 
 
 7 6 
 
 Food 
 
 1 
 
 
 
 Clothing and Boots 
 
 
 5 
 
 Fuel 
 
 
 3 
 
 Light, Soap, etc. 
 
 
 3 6 
 
 Fares 
 
 
 1 
 
 Drink, Tobacco, Papers, 
 
 
 
 etc. 
 
 
 2 
 
 T.U. subs., etc. 
 
 
 1 6 
 
 
 £2 
 
 3 6 
 
 1920. 
 
 Percentage 
 
 8. d. 
 
 increase. 
 
 7 6 
 
 
 7 2 
 
 136% 
 
 17 6 
 
 250% 
 
 4 11 
 
 65% 
 
 10 6 
 
 200% 
 
 1 6 
 
 50% 
 
 4 
 
 100% 
 
 3 
 
 100% 
 
 £5 7 
 
 The increases are a little underestimated in one or two items. 
 Rent, for example, has neariy always increased if only because 
 rates have increased, and for this another Is. should be allowed. 
 The expenditure for drink, etc., is probably lower than it should be, 
 in the 1920 column, by at least 6d. The correct total would be at 
 least £5 2s. Id. However taking the pre-war basis of £2 3s. 6d. and 
 appljdng the Labour Gazette Cost of Living increase for June 1st, 
 1921 (119%), we get the present equivalent to be £4 15s. 6d. 
 Thus, those Jamilies receiving less than £4 15s. 6d. in July, 1920,
 
 WAR PRICES. 27 
 
 are below the poverty line, even according to official figures. And it 
 is a poverty line. 
 
 More light on the " poverty line " is afiforded by a Parliamen- 
 tary reply given in March, 1919. The Government then stated that 
 the actual cost of eachconvictperweek was£22s.9d., which wasan 
 increase of £1 4s. 7d. since 1914, or 119 per cent, increase, and this 
 with the economies efifected by large scale catering, to say nothing of 
 of the spartan fare. Applying the Labour Gazette figures it would 
 now cost £1 19s. 9d. to keep one man. The " experts " estimate 
 the family as being equal to 4.57 men. Thus, if the workers live 
 like convicts they now require a family income of £9 Is. 8d. per 
 week. 
 
 We are now in a position to gather together the result of our 
 enquiries in tables and charts.* Several miscellaneous tables of 
 Index numbers, value of £1 etc., are first given to illustrate various 
 points that have been mentioned in the preceding discussion. 
 These are further shown by means of graphs. In some cases it is 
 only possible to give variations since 1914, the exact statistics 
 required being available only for the period 1914-1920. In one 
 case the year 1905 is taken as the base year, however, as that was 
 a fairly typical pre-war year, free from disturbing factors which 
 might influence the Index number. 
 
 As already explained, it is impossible to arrive at a carefully 
 calculated index number on the basis of an extended enquiry, 
 but from the data available we can make a rough estimate. It is 
 fairly certain that the cost of living in June, 1921, shows an 
 increase of between 130 per cent, and 150 per cent, above the 
 pre-war figure ; the former figure is quite the lowest estimate 
 that can fairly be made, in view of the facts and figures here 
 presented, for the workers in the larger towns at any rate. 
 
 •\PR.m; 
 
 See Appendix II oiul IV.
 
 Chapter III. 
 
 WAR PROFITS. 
 
 The fluctuations in wages and prices, interesting as they are, tell 
 only half the story. The other half is the steadily increasing 
 accumulation of profits during the whole period. As British 
 capitalism is to a considerable extent organised in Pubhc Limited 
 Companies,* whose shares are publicly quoted on the Stock 
 Exchange and whose accoimts are often published in the press and 
 are in any case available at Somerset House, it may seem possible 
 to form a fairly accurate idea of the war profits amassed by 
 British capitahsts. 
 
 1. — The Interpretation of Share Prices, etc. 
 
 When a company is first floated, certain property (land, 
 buildings, machinery, ships, etc., according to the nature of the 
 company) is bought with the money " subscribed " by investors, 
 and these investors are given " share certificates " showing their 
 right to a share in the property and future profits of the company. 
 These shares can be sold by the original investor to any other 
 person later on, and in fact there is a constant process of buying 
 and selling shares. The price at which shares are bought and sold 
 naturally depends on the prosperity of the company ; that is, the 
 shares of a company which normally pays 10 per cent, dividend 
 fetch about double the normal price if the company begins to pay a 
 20 per cent, dividend. Of course the price docs not vary exactly 
 in accordance with the dividend. Let us take the case of a com- 
 pany which in pre-war years paid 10 per cent, regularly, and whose 
 £1 shares were then normally valued at 25s. Now if in 1916 the 
 company paid 20 per cent, the natural tendency would be for the 
 price to rise to about 50s. ; but in actual practice the price might 
 rise to only 40s. (if stockbrokers and investors thought the com- 
 pany's business rather risky), or on the other hand it might rise to 
 60s. (if it was known that the company had only paid out a part of 
 its years profits in the 20 per cent, dividend, and that it had put a 
 considerable amount to" reserves " for future use.). 
 
 For this reason, fluctuations in the prices of shares are not only 
 useful evidence, but probably the most accurate indication, of the 
 prosperity of a company or industry — far more accurate than 
 fluctuations in dividends. Table IV. shows the prices of shares of 
 
 * It should be noted, however that 51,130 out of a total of 66,852 
 companies which were reported by the Board of Trade as registered on 
 December 31st, 1918 (see table VII.) were private companies. But it 
 will be seen that the aggregate capital of these companies is only 26% 
 of the total. 
 
 28
 
 WAR PROFITS. 29 
 
 typical companies, and demonstrates the general prosperity of 
 capitalist concerns as a result of the war. 
 
 It must not be supposed, however, that capitalism has not 
 invented a method of concealing such an indication of prosperity 
 as is given by share prices. To take the example given above 
 of a company whose pre-war dividend was 10 per cent, and the 
 price of shares 25s. ; let us suppose that its issued capital was 
 £100,000;; the sum paid as dividend would therefore be £10,000. 
 When a better year came along, it might want to pay £20,000 
 as dividend. The normal thini: to do would of course t)e to pay 
 a 20 per cent, dividend ; but another way would be to increase 
 its capital to £200,000 by giving as " Bonus " one new share to 
 every shareholder for each old share he held, and then paying its 
 old rate of dividend, 10 per cent. This second method became very 
 popular during the war period ; and of course it is clear that instead 
 of the price of each share doubling, the price would remain more or 
 less the same, though the shareholder would have two shares to 
 sell at 25s. instead of one. TaT»le I. shows a large number of cases 
 in which such bonus shares were issued ; from this table it will be 
 seen that in 1920, 235 companies distributed to their shareholders 
 bonus shares aggregating over £65,000,000 on a paid up capital of 
 neariy £98,000,000. 
 
 This leads on to the opportunities which private individuals had 
 of amassing huge fortunes during the war by means of the enormous 
 rises which occurred in the prices of most shares. Let us take a 
 shipping firm, for example the Cunard Co., and let us suppose 
 an individual had £1,000 to invest in this way. In January, 
 1918, the mean price of a £1 ordinary share was £4 3s. 9d. In 
 October of the same year it was £5 lis. 6d. If this speculator had 
 invested at the January mean price he would have obtained 
 nearly 238 shares worth £4 3s. 9d. Now if he held on to them till 
 October of the same year and then sold out at the mean price of 
 that month (£5 lis. 6d.) he would have regained his original 
 £1,000 and alaout £326 in addition. Small amounts have here 
 been adopted over short periods, but from the table given in 
 Appendix III. (Table IV.) it can be seen what immense potentiali- 
 ties there were for a speculator with a considerable fund at his 
 disposal. It may be remarked here that 328. was the mean price 
 in 1913 of the Cunard £1 share on which the imagined speculation 
 took place ; thus there was an increase between the pre-war and 
 October, 1918 price ol the share of roughly 248 per cent. There 
 was a closely similar position in the c;oods markets of every 
 description. At the commencement of the war there were, of 
 course, a few instances of speculation and price fluctuations, but 
 it was not till the end of 1915 and throughout 1910 and 1917 tliat 
 the opportunities for speculation in prices became immense. 
 During the whole of this period the Government were gradually 
 tightening their control over the raw mat<^rial markets. This 
 piecemeal method produced excellent chances for speculation.
 
 30 WAGES, PRICES AND PROFITS. 
 
 The process of controlling the grain market, for instance, is a good 
 example. By the beginning of 1916 the price of home and foreign 
 wheat was completely controlled but the price of maize was not. 
 Consequently, in view of the fact that it was considered inevitable 
 that maize would shortly be controlled and in view of its 
 growing scarcity, wild speculation took place on cargoes of maize 
 in transit, a market indeed, which in pre-war days had been 
 hardly touched by speculators. Cargoes or parts thereof were sold 
 from one party to another and back again, the prices rising con- 
 tinually — each party taking its share of profits on a cargo which was 
 as yet miles from its destination. Thus when the Government 
 did eventually control the maize market the price at which maize 
 was fixed was a purely inflated one, due almost entirely to specu- 
 lation in anticipation of control. 
 
 This speculation, however, was not confined to grain, for it 
 spread throughout industry until most of the opportunities had 
 been abolished by the middle of 1918, when Government control 
 was most comprehensive. 
 
 On decontrol, however, the same speculation became universal. 
 The absurd heights to which the price of articles were forced in 
 1919 and 1920, according to the evidence given by certain 
 Profiteering Act Committees, were due to this speculation on a 
 limited market. The wool top making trade, for instance, 
 according to one committee* is a trade of a highly speculative 
 character ; thus the price of two qualities of wool had increased 
 by 50 per cent, and 90 per cent, respectively between April and 
 December, 1919, the comment thereon being that these increases 
 " must have brought exceedingly large profits on unsold [stocks 
 (unsold at the end of December, 1919) ". 
 
 It is generally admitted that the process of amalgamation 
 received a huge impetus as a result of war time conditions. Thus, 
 for instance, joint stock banks in England alone, where there 
 were fortj'-three in 1913, had by a process of amalgamation 
 reduced their number to twenty in 1920 ; further, the group 
 known as the Big Five controlled the vast majority of the business 
 of these twenty banks ; this can be realised when it is stated that 
 of the deposits of these banks, 83 per cent, is accounted for by 
 this group. f 
 
 Lever Bros, is another good illustration of this process. 
 This firm in 1914 controlled about forty companies in the great 
 majority of which they held practically all the shares. The paid 
 up capital of Lever Bros, itself was in 1914, £11,704,258. In 
 1921, according to a statement at the Annual Meeting, Lever 
 Bros, now control 158 companies and Lever's paid up capital is 
 £46,679,079. 
 
 By this means competition was eliminated and groups of great 
 firms were able to gain control of markets and to exploit the con- 
 sumer. Besides, this process of absorption had a further 
 * Cmd. 1192 (1921), 4d. f See Table V.
 
 WAR PROFITS. 31 
 
 advantage ; for it enabled firms whose profits had swollen to 
 inflated values to conceal the inconvenient surplus in the firms 
 which they had absorbed. Great industrial concerns also were 
 actually able to turn to their advantage the failure of unsuccessful 
 concerns. For according to certain investigations into the Excess 
 Profits Duty {e.g. that conducted by R. M. Haig and G. E. Holmes 
 and published as a supplement to the Amprican Review, for 
 December, 1920) this duty to a large extent contributed to the 
 process of amalgamation. For when one concern buys out another 
 the pre-war records of the two concerns are amalgamated and form 
 the standard by which is measured the excess profits of the com- 
 bined businesses. " This has led " according to the report " to 
 a lively traffic in bankrupt or near bankrupt concerns which were 
 prosperous before the war. There is competition for the privilege of 
 using the pre-war records of these now unprofitable businesses." 
 
 2. — The Interpeetation of Company Accounts. 
 
 We come now to the second main source of information as to 
 the profits made by British capitahsts — the accounts of Public 
 Limited Companies. Every Trade Union when it is either putting 
 forward a demand for an increase in wages or resisting a demand 
 for a reduction in wages would like to have, if it could, all the facts 
 about the financial position of the employer or group of employers 
 with whom it has to deal. The Labour Research Department has 
 from time to time been called upon to obtain the facts as to the 
 profits, dividends, reserves, etc., of companies in various industries. 
 
 Such research work is rendered very difficult by the form in 
 which the law allows company reports to be issued. In fact, not 
 only each industry, but practically each company, issues accounts 
 in its own form. Many of these forms seem to have been adopted 
 because they best serve to conceal the real prosperity of the 
 concern from the Labour investigator. 
 
 In the preceding pages reference has been made to " reserves," 
 " undisclosed reserves," etc. It is of the highest importance that 
 these devices, and many others, should be fully understood by 
 Labour (more especially if there is any discussion with employers 
 about profit-sharing, or " the serious condition of the industry ") 
 — because in accounts things are usually far from what they seem. 
 Nowadays the Capitalists are becoming more and more anxious 
 to hide their real profits from Labour, and they have invented 
 many devices for that purpose. 
 
 Before going on to explain these devices, it will be useful to 
 describe the form in which company accounts are usually issued. 
 
 All that is required by law is a " Balance Sheet." This is 
 simply a statement of what the company moes (its " Liabihtios ") 
 to the shareholders or to any one else in the course of business ; 
 and what it owns (its " Assets " — property, machinery, cash at 
 bank, etc.) This is how the balance sheet of a company which 
 had just been floated would appear : —
 
 32 WAGES. PRICES AND PROFITS. 
 
 Liabilities. Assets. 
 
 Capital— Property acquired £90,000 
 
 Ordinary Shares £100,000 Cash at Bank . . 10,000 
 
 £100,000 £100,000 
 
 At the end of the first year's trading, it would prepare a state- 
 ment of the results, which we can imagine to have been : — 
 
 Trading Account. 
 Expenditure. Revenue. 
 
 Materials and supplies. Proceeds from 
 
 etc £75,000 Sales .. £250,000 
 
 Wages and Salaries 125,000 
 
 £200,000, 
 
 Balance (gross profit) 50,000 
 
 £250,000 £250,000 
 
 This " Gross Profit " would be brought into a " Profit and 
 Loss " Account ; and then the directors would have to decide 
 what should be done with this £50,000 of gross profit. Let us 
 assume that they determine to draw up the profit and loss 
 Account as under : — 
 
 Profit and Loss AccotrNT. 
 Charges. Profits. 
 
 Depreciation of Gross profit . . £50,000 
 
 Property . . £4,500 
 
 Reserve Fund . . 20,000 
 
 20 per cent, dividend 20,000 
 
 Balance forward to 
 
 next years 
 
 accounts . , 5,500 
 
 £50,000 £50,000 
 
 We must take this item by item, and see what happens to the 
 £50,000 of actual cash which the company had gained from the 
 year's trading (for the sake of simplicity, it is assumed that the 
 profit is all cash, and that no credit is involved). 
 
 The item of dividend is simple — this £20,000 is paid out to 
 the shareholders. It is also clear that the balance forward is 
 not touched, but simply remains in the company's bank account 
 for the future benefit of the shareholders. The reserve fund, 
 again, simply remains in the company's bank account ; and so 
 does the £4,500 set aside for depreciation. In other words, what- 
 ever " funds " may be started, whatever amount may be, in the
 
 WAR PROFITS. 33 
 
 language of accountancy, " written off " for depreciation or any 
 other purpose, the company's bank account is improved by the 
 whole of the gross profits, less only the amount paid out to share- 
 holders as dividend. 
 
 The balance sheet at the end of the year's trading, and after the 
 payment of dividend, will therefore appear as under : — 
 
 Liabilities. 
 
 
 Assets. 
 
 
 Capital (as before) 
 
 £100,000 
 
 Property 
 
 £90,000 
 
 Reserve Fund 
 
 . 20,000 
 
 
 
 Depreciation Fund 
 
 4,500 
 
 
 
 Balance of Profits . , 
 
 5,500 
 
 Cash at Bank 
 
 40.000 
 
 
 £130,000 
 
 £130,000 
 
 In this example we have given the very simplest form of 
 accoiints. We have now to examine the various methods by 
 which companies can hide their true position, taking the different 
 stages in order. 
 
 1 . Trading Account. — In the account of the year's trading, the 
 company may include under " expentlituro " many items which 
 are not genuine trading expenses. For example, it is known that 
 there was a tendency during the war to evade excess profits duty 
 by putting down as trading expenses a good many expenses that 
 were really additions to properti/, such as the cost of new machinery, 
 new buildings, furniture, etc. Tlie effect of this is to make the 
 gross profits appear smaller than they really are ; and there is no 
 limit to the amount of profit than can be concealed in this way 
 before the " gross profit " is arrived at. It is clear that every 
 such tran.saction creates a " secret reserve " ; to make this clear we 
 repeat the balance sheet as it should appear, supposing that the 
 company had included in its " materials and supplies, etc." 
 figure £10,000 which was really spent in additions to property : — 
 
 Liabilities. 
 
 
 Assets. 
 
 Capital 
 
 £100,000 
 
 Property . . £90.000 
 
 (Secret Reserve) 
 
 10,000 
 
 (Propfrtyad li'd but 
 
 Reserve Fund 
 
 20,000 
 
 not included).. 10,000 
 
 Depreciation Fund 
 
 4.500 
 
 Cash at Bank . . 40,000 
 
 Balance of Profits 
 
 5.500 
 
 
 
 £140,000 
 
 £140,000 
 
 This explains how a " secret "' reserve is possible ; there are 
 other devices for secret reserves which are explained below. For 
 the present, one example will show the enormous amounts that 
 may be concealed in these secret reserves ; in August, 1919, 
 Messrs. Furness. Withy & Co. issued £2,000.000 in bonu.s shares to 
 their shareholders (thus doubling their issued capital), out of some
 
 34 WAGES, PRICES AND PROFITS. 
 
 undisclosed reserve fund, and without touching their open reserves 
 which stood at £1,800,000 ! 
 
 2, The Profit and Loss Account. It is at this stage in the 
 accounting that most of the concealment of profits arises. The 
 most varied charges, supported by a plausible explanation in the 
 chairman's speech, may be invented in order to show that the 
 company's " gross profits " figure (which, as we have seen, may 
 itself be an understatement) should not be taken as the figure of 
 profits which the shareholders get. 
 
 For example, the item Reserve Fund may be followed by 
 other items, such as : — Special Reserve, Reserve for the equalisa- 
 tion of dividends. Contingency Fund, etc. etc., and (the chairman 
 may explain that these are wanted for some particular purpose, 
 giving the impression that they are real " charges " against profits. 
 In fact, whatever name they may bear, they are merely accumu- 
 lated profits, and the amount allotted to them swells the bank 
 balance of the company. 
 
 The second item, depreciation, is more complicated. The 
 theory of depreciation is that each year the company's property is 
 wearing out, and that at the end of a certain period it will be 
 practically valueless and it will have to be renewed. Of course this 
 period varies according to the type of property ; thus, machinery 
 wears out in a few years ; buildings in a rather longer time ; land 
 not at all — in fact, industrial land as a rule steadily rises in value. 
 In the example given above, we have assumed that the company 
 placed twenty years life on its property ; that is, it set aside as 
 depreciation each year one-twentieth of the value of the property 
 (£90,000), or £4,500. After twenty years, with £4,500 each year 
 written off from profits as depreciation, there would be £90,000 
 accumulated, while the buildings might in fact be quite good, and 
 the land have doubled in value. Perhaps only the machinery 
 might need renewal, at a cost say of £10,000, while the real wear 
 and tear of the buildings might be more than covered by the 
 increased value of the land. In such a case the property would 
 have been " over depreciated " to the extent of £80,000 — and this 
 £80,000, though labelled " depreciation fund," would in reality be 
 a concealed reserve. 
 
 This practice of " over depreciation " became increasingly 
 common during the war, and without knowing all the details it is 
 impossible to tell how much of the depreciation of any company 
 is really a secret reserve. An example will show the enormous 
 amounts that may be so accumulated. In 1920 Lever Bros., 
 issued £3,927,595 to their shareholders as bonus shares, out of their 
 secret reserves. At the Annual meeting on April 28th, 1921, Lord 
 Leverhulme said : — 
 
 " We have always depreciated fully and amply all the 
 properties, not only of the parent company at Port Sunlight 
 and elsewhere, but of all associated companies, as also 
 have our predecessors in those associated companies founded
 
 WAR PROFITS. 36 
 
 prior to the time of their purchase by ourselves. This 
 depreciation has in many cases been excessive. For 
 instance, in one associated company I have visited during 
 the last twelve months, when I looked into the depreciation 
 account of that company I found that the whole of the plant, 
 machinery, buildings, etc., had been steadily depreciated at 
 a fixed rate year after j'ear, and the depreciation fund stood 
 in 1920 at £20,000 more than the amount appearing on 
 the books as the value of the properties as depreciated ; 
 therefore the whole of the plant, machinery and buildings 
 of that company stood at £20,000 less than nothing." 
 
 The difficulty of teUing what " secret " reserves are included 
 in the trading account has already been explained ; when we add 
 that in many cases neither the trading account nor the profit and 
 loss account are published, but only the balance sheet, the difficulty 
 of tracing the real profits of a company becomes even clearer. 
 Moreover, it is now the custom, instead of keeping a depreciation 
 fund (the amount of which would appear on the balance sheet), to 
 deduct the depreciation from the value of the property each year. 
 As all the more important concerns are adding to their property 
 each year, the item appears on the balance sheet as " property 
 plus additions during the year, less depreciation " without details 
 of the additions or the depreciation. In such cases it is absolutely 
 impossible even to guess at the real amount added to the value, as 
 the real amount may have been entirely or partially written ofif in 
 over-depreciation . 
 
 There are other methods of concealment, and no account can 
 pretend to be exhaustive, as new devices are constantly appearing. 
 For the sake of simplicity the question of credit transactions 
 was omitted from the example of a balance sheet given above. 
 In practice, of course, every balance sheet has the item " Sundry 
 Creditors " (i.e. amounts that the company owes) among its 
 Uabihties, and" Sundry Debtors " (amounts owed to the company) 
 among its assets. In either of these items a v^ery substantial 
 secret reserve may be concealed. The amounts owed to the 
 company may be understated ; or the amounts owed by the 
 company may be overstated. Thus the chairman of the Calico 
 Printers' Association at their Annual Meeting on September 15th, 
 1920, said in reference to an item entitled " Creditors and reserve 
 for Contingencies " : — 
 
 " As I stated in 1918 this will ultimately bo subject to 
 a good deal of adjustment. ... To whatever extent it 
 contains, as it largely does contain, reserves against liabilities 
 which must be provided before arriving at a trading profit 
 for any period, we beheve it to be so far as we can estimate, 
 adequate for all contingencies." 
 
 There is also the device of absolutely omitting the real value 
 of certain property from the balance sheet ; for example, some
 
 36 WAGES, PRICES AND PROFrrS. 
 
 years ago Courtaulds, Ltd., set up the American Viscose Co. In 
 1920 the directors announced that it had by then become very 
 valuable, and it was entered in the balance sheet at a figure of 
 nearly £8,000,000 ; and bonus shares to the extent of £8,000,000 
 (200 per cent, on the Company's capital) were issued to the share- 
 holders to make the balance-sheet balance ! 
 
 It vnW be clear from the foregoing that it is not possible to sum 
 up the profits of all companies, or even of an industry, without 
 access to the private ledgers of the companies. The published 
 figures of profits are gross understatements. The amount of 
 deception varies from firm to firm ; one vnW conceal 25 per cent, 
 of its profits, another 80 per cent. ; and although in some cases 
 careful scrutiny, or the indiscretion of the company's chairman, 
 may indicate the existence of secret reserves, it is not possible to 
 form any accurate idea of the amount of profits concealed in this 
 way. Certain figures of profits made by a number of companies 
 are given each quarter in The Economist, but careful investigation 
 has shown these to be so much below the real figures that to 
 reproduce them would give a wrong idea of the facts.
 
 Chapter IV. 
 
 WAGES, PRICES AND PROFITS. 
 
 It is a commonplace of economics that wages tend to lag behind 
 prices. When prices are rising wages tend to rise, though more 
 slowly ; or, as the economist puts it, the price of labour is the 
 price which most slowly follows the general movement of prices. 
 In such bloodless fashion is the tragedy expounded. 
 
 The factor which is responsible for greater acceleration in the 
 rise in wages is the existence of Trade Unionism. Strongly 
 organised, labour can force a rise in wages to follow more quickly 
 a rise in prices and this is seen in a comparison between organised 
 workers and workers in unregulated trades. For example, there 
 is evidence to show that for largo numbers of unorganised shop 
 assistants wages rose to a very small extent between 1914 and 
 1920, so that their standard of life went down enormously. Even 
 under the Trade Boards Acts, progress depends mainly on Trade 
 Union activity. The Trade Unions did not, however, exercise 
 unrestrained powers during the war. The most strongly organ- 
 ised sections failed in many cases to maintain wages at their 
 pre-war value and the rise in wages followed almost without 
 exception and did not precede the increase in cost of living. The 
 latter rise was indeed the cause of the former. No doubt, owing 
 to the working of the present system, a rise in wages led to a 
 further rise in prices, and thus to the vicious circle about which we 
 have heard so much, but it cannot be too strongly emphasised 
 that the increase in the cost of living came first. It was because 
 it was impossible to live on the existing wages, with prices going 
 up all the time, that demands for increases were put forward. 
 
 By the end of 1914, the cost of living had risen 15 per cent, 
 above the level of July, 1914, yet in only one industry was there 
 any rise in wages, and that was a rise of 7 per cent, only 
 (engineering). By the end of 1915, the cost of living had risen 
 35 per cent, above the pre-war level and yet during 1915 only one 
 industry, mining, showed an increase in wages of anything like 
 this figure. The wages in several large trades, indeed, did not rise 
 at all during 1914 or 1915. Such was the case in cotton spinning, 
 tailoring, and cabinet making. In others, for example 1 'rick- 
 laying, wool spinning, hosiery knitting, l)Oot and shoe making, 
 printing, pottery, taking, and in the civil service, wages rose less 
 than 10 per cent, during this period. 
 
 So all the way through we find the same thing. Wages rose 
 more slowh' than prices, and it is important to note that a- a 
 rule those workers who were most strongly organised forced the 
 
 37
 
 38 WAGES, PRICES AND PROFITS. 
 
 pace most successfully, and only those sections managed finally to 
 reach a level equal to that reached by the soaring cost of living.* 
 These facts will be evident from the tables and graphs appended, 
 but a few extracts from these will serve to emphasise the position. 
 By the end of 1916 the cost of living had risen 65 per cent. The 
 only workers who secured a similar increase in wages were the 
 miners, who are the most strongly organised body, while the 
 weakly organised clothing workers had not secured a rise at all. 
 Some well- organised bodies, it is true, made slow progress at first 
 but made up for this later. Take cotton, for example. We have 
 a rise of only 5 per cent, by 1916, but 110 per cent, increase by 
 1918 and 182 per cent, increase by 1920, as compared with a cost 
 of living increase of 125 per cent, by the end of 1918, and 176 per 
 cent, in 1920. On the other hand the weakly organised pottery 
 workers had secured only 60 per cent, by 1918 (less than half the 
 rise in the cost of living) and 108 per cent, by 1921, when the cost 
 of living had increased 170 per cent. 
 
 Taking the year 1920 which saw the highest level reached by 
 prices, namely 176 per cent, increase over the pre-war level, we 
 find that wages reached an even higher level in four industries, 
 namely, textiles, transport (railways and docks), steel (Siemens) 
 and agriculture. On the other hand it has to be remembered 
 that before the war transport and agriculture were practically 
 sweat( d industries and that there cannot possibly be any return to 
 the pre-war standard in these cases. The astonishing growth in 
 the organisation of agricultural workers during and since the war 
 was partly a cause, partly a result, of the rise in wages. The main 
 point, however, was the exceptionally important part played by 
 farming and food-production generally, and the consequent 
 establishment of the Agricultural Wages Boards. A similar result 
 followed from the importance of the Transport industry, though 
 different machinery was invoked for wage fixing, and in the case of 
 the Rail way men a strike was necessary. 
 
 Turning to the other extreme we have to set against an increase 
 in prices of 176 per cent., a rise in wages of only 133 per cent, 
 (engineering), 125 per cent, (hosiery), 112 per cent, (tailoring), 
 108 per cent, (pottery), 98 per cent, (tobacco) and 93 per cent, 
 (boot and shoe). 
 
 It will hardly be necessary to say that these figures do not 
 refer to everyone in the industry, as rates vary from grade to grade, 
 but a large representative section has been taken in each case. 
 
 The statistics and charts show quite clearly that as far as these 
 sections fif each industry are concerned, wages only ro.se after 
 the cost of living had increased and that in most cases the rise in 
 wages did not compensate for the increased prices. 
 
 In other w^ords, real wages and therefore the workers' standard 
 of life, have in most cases declined as compared with pre-war 
 
 * But women workers in general were an exception, as their wages rose 
 most of all.
 
 WAGES, PRICES AND PROFITS. 39 
 
 times. The figures of Tables I.* and II. f are combined in Tables 
 VTII.* and IX.* to show the variation for certain representative 
 classes of workers in real wages, purchasing power, or standard 
 of life. That is, the fitrures given in Tables VIII.* and 
 IX.* show not how the money wage has varied but how the 
 real worth of the money wage in purchasing power has 
 varied. Such results are much more valuable than tables of 
 nominal wages, for they reveal at once the striking fact that 
 throughout the war practically all workers suEFered a decline in 
 standard of living, even counting the advances and bonuses 
 secured. In 1915 no class of workers shown in the Table reached 
 their pre-war standard of life : in 1916, (^nly the miners did so. 
 Railway workers were the only class to reach their pre-war level 
 in 1917 and 1918. In 1919 there were four groups, and in 1920 six 
 groups which reached that level. These Tables do not, of course, 
 represent a statistical average of the earnings of all workers in any 
 industry. Such an average could only be arrived at with infinite 
 difficulty and small pretence to accuracy, owing to the lack of 
 reliable information as to (a) the number of workers covered by 
 any particular advance, and (6) the relation of time-rates to earn- 
 ings — including piece-work and short time — in each particular 
 case. In the absence of this information, however, the Tables, 
 which give the actual changes in the time-rates of the important 
 trades which they cover, are as good an indication as can be 
 achieved. 
 
 We find on the other hand that in the tailoring trade the 
 standard of life actually went down in 1916 to 60 per cent, of what 
 it was in July, 1914. From 1913-14 to 1918-19, as will be seen 
 from Table III.| gross profits from businesses increased by 
 over 200 per cent. Actually, in the period 1916-1920, about 
 £900,000,000 was paid over by companies in the form of Excess 
 Profits, while about three times as much in miditum was assessed 
 for Income Tax as profits from public companies. 
 
 Yet the workers had in nearly all cases to suffer a severe decline 
 in their standard of fife, and even by the end of 1920 two-thirds 
 of the industries had not reached their pre-war standard of real 
 wages. 
 
 t Appendix I • Appendix II. % Appendix III
 
 Chapter V. 
 
 THE ATTACK ON WAGES. 
 
 The fictitious trade prosperity due to war conditions was followed 
 in 1920 — as the economists had predicted — by a widespread stagna- 
 tion of trade irenerally accompanied by falling prices. Warehouses 
 were glutted with apparently unsaleable goods. Hundreds of 
 thousands of workers were thrown out of employment, or placed on 
 short time. Advances of wages were brought abruptly to a cheek, 
 and employers now put in their claims for wholesale and drastic 
 reductions. The miners were among the first of the workers to be 
 severely hit. The acute depression of the South Wales export 
 trade had already caused a serious decline of output which was 
 reflected under the new sliding scales in a substantial fall of wages, 
 when the Government saw fit unexpectedly to release the mines 
 from control. The employers had at last a free hand, and they 
 instantly announced their intention of cutting down wages to a 
 level equivalent for many thousand miners to a weekly sum of 
 substantially less than £1 a week at pre-war value. Not merely all 
 relationship to the cost of living was ignored, but it was proposed 
 to reverse the policy of national settlements and to fix wages 
 according to the capacity of the mines in each district to pay. 
 While the miners in South Wales and the Forest of Dean were 
 asked to accept reductions of 30, 40, and even 50 per cent.. South 
 Yorkshire miners were actually offered an advance. The terms 
 were indignantly rejected by the miners in every district, with the 
 result of the famous coalowners' lock-out. Similarly, the Engineer- 
 ing and National Employers' Federation proposed reductions 
 of wages ranging from 12s. to 30s. per week, with the effect of 
 bringing down rates to fifty points below the Ministry of Labour 
 cost of living index figure. Women's wages in the Midlands 
 district had already been reduced from a minimum of 43s. 6d. to 
 one of 35s. 9d. a week. Dock labourers were threatened with an 
 immediate all-round reduction of 4s. per day. The cotton 
 manufacturers proposed a general decrease of 95 points in the 
 figure of war advances, and the woollen manufacturers an all- 
 round decrease of about 20 per cent, apart from the variations 
 of the cost of living sliding scale. The good defence put up 
 by the trade unions and the possibihty of a general stoppage 
 of work, whieh would spread from one industry to another, 
 caused employers afterwards to modify their claims, but, as 
 we have seen, wages were subject to very drastic reductions in 
 the summer of 1921. Simultaneously, there began an organised 
 attack by employers on the Trade Boards Act, to which the 
 
 40
 
 THE ATTACK ON WAGES. 41 
 
 Government became apparently a party. The Wages (Temporary 
 Regulation) Act came to an end in the autumn of 1920. The eflfect 
 was to expose several millions of workers in unregulated trades 
 to indiscriminate reductions of wages. The trade unions expostu- 
 lated, but the Government defended its action on the ground that 
 some fifty or sixty new trade boards were in process of setting up, 
 by which these trades would be almost immediately covered. The 
 Government, however, now changed its mind. The setting up of 
 new trade boards was indefinitely postponed, and the greater part 
 of the official staflF engaged in this task was actually discharged ! 
 Grocers and provision merchants, coming under the Act for the 
 first time, flouted openly the decisions of the board and the 
 Government supported their revolt by refusing to endorse the 
 minimum rates which the board had proposed. The failure to 
 appoint a proper stafif of inspectors led elsewhere to widespread 
 evasions of the law. " Whitley ' councils broke down for similar 
 reasons, and employers deserted from their side of the board 
 rather than obey its decisions. But the climax was reached when 
 the Government announced suddenly in June its intention of re- 
 pealing the Agricultural and Corn Production Acts, with the result 
 of squashing the agricultural wages board — an announcement 
 received with cheers from the coalition benches of the house of 
 Commons. The Government had come to the conclusion that the 
 provisions relating to wages were " more than the country can 
 afford," and it was proposed to throw agricultural workers back 
 to the old conditions of dependency on farmtTs and landlords 
 at the fall of the harvest, precisely when their labour would be 
 least in demand and they would stand strategically in the least 
 favourable position. The trade union agitation for the retention 
 of the boards resulted in the usual compromise, but purely 
 voluntary conciliation boards are no substitute at all for statutory 
 powers of enforcing a legal minimum wage. It was in line with the 
 same reactionary poUcy of non-interference that the Government 
 refused to ratify the Washington international convention which 
 prescribed a legal eight-hour day — a breach of faith wiiich caused 
 both sides of the National Industrial Confcrenci' Provisional Com- 
 mittee to resign in disgust. The national machinery for regu- 
 lating wages and working conditions which had in many ways 
 had a steadying effect on war advances — the provision of the 
 Trade Boards Act which requires that six months should elap.se 
 between one decision and the next was felt by the workers at one 
 time as no mean drag — this machinery was now arbitrarily to bo 
 scrapped, and wages were to tumble down pell mell. It was 
 assumed by employers as a matter of course that prices, which had 
 gone up before the rise of wages, could not come down except after 
 this faU. The employers' attitude towards the workers can only 
 be described as one of " heads I win and tails you lose." Con- 
 sciously or unconsciously, as profits fell or turne<l to losses, the 
 employers shifted their ground, and the focus in industrial disputes
 
 42 WAGES. PRICES AND PROFITS. 
 
 was transferred from the workers' need of a living wage to " what 
 the industry could afford to pay." 
 
 Employers maintain that the sum of wages is Umited by the 
 capacity of the industry to pay, but economic capacity is an elastic 
 term. The bankruptcy of a particular firm does not affect any 
 except private interests. From the national standpoint, it is only 
 necessary to consider the economic capacity of the industry as a 
 whole, and over a reasonable period of years. Fluctations of trade 
 are a normal phenomenon of industry, and periodical waves of 
 trade depression form apart of ordinary commercial risks. Enor- 
 mous profits were made by employers during the war, and 
 with no obvious justitication. Where the margin of income 
 is a wide one, as employers were quick enough to liiscover 
 in the case of higher -paid workers, compensation for high 
 prices is not so pressing a matter. Vast fortunes were no doubt 
 squandered away by employers and their families in senseless 
 luxury, during the war. but more significant than war extrava- 
 gance was the rich reward of abstinence. While war wages were 
 absorbed, or more than absorbed, in mere cost of living, war 
 profits were transformed by employers into new forms of capital. 
 In spite of the excess profits tax, they were able to build up great 
 reserve funds and huge stores of plant and material. Bonus 
 shares were issued to shareholders, or other means were taken of 
 inflating capital, and a fresh burden of interest was thrown on the 
 industry. Until these shares are written dovni. employers have 
 not seriously begun to tap their reserves. Nor can the Govern- 
 ment be absolved from its financial responsibility for the pnjsent 
 trade crisis. Where large sums have been taken out of the 
 industry for the public benefit, directly as excess profits or 
 indirectly in the form of controlled prices, there may be a case for 
 refunding a part of this money under very special circumstances. 
 The £10,000,000 granted from the Treasury to the mining industry 
 for the purpose of maintaining wages at a reasonable level during 
 the critical period of transition from war-time to normal conditions 
 may be viewed as a refund of this kind. It is not an unreasonable 
 claim on the part of the workers that the class which draws the 
 profits should bear the losses, or that a great industry should be 
 ordered so as to provide full maintenance for the workers in bad 
 years as well as in good years. The fierce tenacity with which 
 employers everywhere defend their right of private ownership in 
 industry suggests that the outlook of capital in this country is not 
 so black as the public is led to suppose. 
 
 But, apart from ethical considerations, it seems a very doubtful 
 matter how far reductions of wages can achieve the object for 
 which employers expressly advocate them, and by offering the 
 means of cheap production enable a return to good trade. The 
 present acute trade depression may be chiefly traced to inter- 
 national causes and the persistence of war conditions in Europe. 
 Foreign markets are closed to British merchants for political
 
 THE ATTACK ON WAGES. 43 
 
 reasons, or because of the contracted purchasing power in 
 impoverished countries and the breakdown of international 
 exchange. Owing to depreciated currency, goods may be pro- 
 duced in Germany at prices quite uneconomic in this country. 
 British manufacturers have been known to declare that they could 
 not meet German competition, even if they did not pay wages at 
 all ! Various schemes for the restoration of Europe have been 
 put forward by economists, but the Government has hardly 
 begun seriously to tackle the problem. For under the Overseas 
 Trade (Credit and Insurance) Acts facilities have only recently 
 been given on a limited scale for the importation of raw materials 
 and primary necessaries into the impoverished countries of Europe : 
 while the Ter Meulen scheme for granting credit for trade on an 
 international scale still shows no signs of coming into operation. 
 Nor is there any evidence to show that the effect of reductions 
 of wages is to stimulate demand at home. On the contrary, 
 the loss of purchasing power in a class whose limited incomes 
 are necessarily transformed at once into an efifective demand 
 for goods and services, must tend to aggravate depression. 
 The benefit seems reserved to employers who would take 
 advantage of cheap labour in order to swell profits in the next 
 period of trade prosperity. A better plan would be for merchants 
 and manufacturers to make up their minds to cut their losses 
 and unload the stocks which they are notoriously holding up 
 against a upward turn of the market. Not merely the public 
 would benefit by the fall of prices, but purchasers would not hold 
 their hands in the expectation of further reductions, and the path 
 would be cleared for a fresh start. There is, moreover, no neces- 
 sary connection between wages and prices. It is significant that 
 the drastic reductions of wages to which miners were subject at 
 the end of the coalowner's lock-out was immediately followed by a 
 rise of 3s. per ton in the price of domestic coal. it may actually 
 pay employers to dispose of a <maUer output ;it a higher price, 
 and to throw the burden of restricted demand upon the workers 
 m the form of unemployment or short tim(\ 
 
 Employers preserve the utmost secrecy on all matters of 
 costing, and the facts are only disclosed under compulsion. The 
 Sankey Coal Commission revealed, not merely obsolete methods 
 and machinery in a number of pits, but a complete absence of 
 co-operation between coal-owners. In the opinion of expert 
 ^\itnesse8, it would be possible under a system of unified control 
 to effect very large economies as regards both the running of the 
 pits and the distribution of coal, but the Government was not 
 prepared to use the necessary powers of coercion against the coal- 
 owners, and there are no signs of reform. It seems an obvious 
 preUminary to a reduction of wages that the administration of the 
 industry should be subject to pubhc enquiry and placed on a 
 proper basis of efficiency. Another simple means of economy is 
 suggested in the handsome fees voted by shareholders without
 
 44 WAGES, PRICES AND PROFITS. 
 
 demur to the chairman and directors of the company, who may 
 only be quahfied by birth for their posts. While managing 
 directors receive (in addition to profits) fixed salaries amounting 
 to £10,000 a year, there can be no case for cutting down wages 
 below the level of decent subsistence. The point is economically 
 a small one. l)ut has a clear moral significance. 
 
 Finally, it should be borne in mind that war wages represent 
 for the most part merely compensation for the rise in the cost of 
 living. The trade unions took little or no advantage of the war 
 emergency in order to force up wages above their material value. It 
 is significant that the largest increases were received, not by skilled 
 workmen who stood in the strongest strategical position for 
 enforcing their claims, but by general labourers and women, or 
 under the Trade Boards Acts. If only to expedite output, special 
 consideration was given during the war to lower-paid workers who 
 received proportionately large advances, but wages have not been 
 raised in their case above the bare poverty line, and to return 
 now even to the pre-war standard of living would mean a reversion 
 to the " sweated " conditions which the Prime Minister has again 
 and again declared to be abohshed for all time. Nor do men's 
 eyes look eternally towards the past, and the workers will not for 
 ever be content to receive a mere " fodder " wage. A comparison 
 of income between the two classes of employers and wage-earners 
 suggests that advances of wages are overdue, not only in some 
 " sweated " trades, but to practically the whole body of manual 
 and clerical workers, including in many cases salaried managers 
 and technicians. So long as the present gross disparities of 
 income persist, there can be no such thing in industry as a 
 permanent settlement of disputes.
 
 SUMMARY OF CONCLUSIONS. 
 War Wages. 
 
 1. Advances of wages during the war ranged in most cases 
 from 100 per cent, to 200 per cent., but larger amounts were 
 received by workers who were admittedly underpaid in 1914. 
 
 2. Wages did not rise to a great extent even for lower paid 
 workers until the latter part of the war. 
 
 3. " Profiteering " on the part of the workers was deliberately 
 checked by the Government as well as by employers, and war 
 advances were restricted so far as possible to compensation or 
 part compensation for the rise in the cost of living. 
 
 4. Apart from this the main achievement of the workers 
 during the war was the establishment of national minimum rates 
 of wages and the levelling up of wages in backward trades and 
 backward districts. 
 
 War Prices. 
 
 1. Retail prices rose by 212 per cent, between 1906 and 1920, 
 all but an insignificant part of the rise occurring between 1914 and 
 1920. The fall began at the end of 1920. 
 
 2. Expressing the facts in another way, the value of the 
 sovereign (in food) went down from 20s. in 1914 to 7s. 2d. at the 
 beginning of 1921. 
 
 3. Wholesale prices rose to a greater extent than retail prices, 
 in the same period, and the faU began sooner (about July, 1920). 
 
 War Profits. 
 
 1. Owing to exceptional opportunities for speculation and to 
 the elimination of competition by amalgamation between 
 companies, manufacturers and traders were able to secure very 
 large profits during the war ; there is, moreover, reason to beheve 
 that profits amounted to very much larger sums than was apparent 
 to the public. 
 
 2. The prosperity of a company is normally measured by the 
 price of its shares on the market ; this prosperity, however, was 
 concealed during the war by the issue of bonus shares, which, 
 while reducing the price of the share, increased the number held. 
 
 3. The methods employed by companies to conceal their true 
 position were as foUows : — 
 
 (a) By making fictitious additions to trading expenses which 
 were in reality additions to property in the form of 
 machinery, etc., thus creating a secret reserve. 
 
 (6) By setting aside sums to imaginary reserve funds, when 
 making up the profit and loss account, which in reality, 
 though stated to be for some specific purpose such as the 
 equalisation of dividends, merely went to swell the 
 accumulated profits of the company. 
 
 (c) By over-depreciating property. This device became 
 increasingly popular during the war. 
 
 45
 
 46 WAGES, PRICES AND PROFITS. 
 
 (d) By concealing secret reserves in the items " creditors," 
 
 and " debtors " ; thus the amount owed by a company 
 may be overstated or the amount owed to a company 
 may be understated. 
 
 (e) By the omission of certain property from the balance sheet 
 
 altogether, only to be brought in at some future date and 
 capitalised by the issue of bonus shares. 
 
 Wages, Prices and Profits. 
 
 1. The percentage rise in nominal prices was very rarely as 
 great as the percentage rise in retail prices except in the case of 
 lower-paid workers. 
 
 2. Wage increases followed in almost every case and did not 
 precede the rise in prices. 
 
 3. Real wages or purchasing power, therefore, showed on the 
 whole a decline between 1914 and 1920. 
 
 4. While advances of wages were absorbed, or more than 
 absorbed in cost of living, employers were able to add enormously 
 to their capital wealth. 
 
 The Attack on Wages. 
 
 1. As the artificial trade prosperity due to war conditions 
 came to an end there was a sharp break in prices, and employers, 
 maintaining that this would be followed by a serious fall in profits, 
 immediately put in claims for wholesale and drastic reductions of 
 wages. 
 
 2. National machinery for fixing wages which had to some 
 extent had a steadying effect on war advances was broken down, 
 and the emphasis in wages disputes transferred from " com- 
 pensation for the cost of living " to " what the industry could 
 afford to pay." 
 
 3. In considering the employers' case for reductions of wages, 
 in order to meet the present trade crisis, the following facts may be 
 pointed out : — 
 
 (a) that very large profits were made by employers during the 
 war, which sums are, or ought to be, available for tiding 
 over the present trade depression. 
 
 (6) that the present trade depression is primarily due not to 
 exceptional costs of production, but to the persistence of 
 war conditions in Europe, and to depreciating currency 
 and the contraction or purchasing power in impoverished 
 countries. 
 
 (c) that cheap labour does not necessarily lead to low prices, 
 and prices may be actually raised while wages are 
 reduced. 
 
 {d) that costs of production may be reduced by other means 
 than reductions of wages, namely, by up-to-date methods 
 and machinery and economy in management. 
 
 (e) that present rates of wages do not represent more and in 
 many cases less than a bare" subsistence " wage.
 
 APPENDIX I. WAGES. 
 
 Sources of Intormation. 
 
 The main sources of information from which the following tables 
 have been compiled are the " Changes in Rates of Wages and 
 Hours," pubhshed each month in the Lahotir Gazette, the Ministry 
 of Labour Report on " Standard Rates of Wages and Hours of 
 Labour,' issued for 1920, and in some cases the summaries of 
 evidence in the Report of the War Cabinet Committee on Women 
 in Industry. This information has been ^supplemented by trade 
 union annual reports and journals and by figures supplied 
 directly by the trade union** to the Labour Research Department. 
 Other sources of information relating to particular industries are 
 the Commission of Enquiry into the Coal Industry, 1919, the 
 Docker's Court of Enquiry, 1920, and the Court of Enquiry- into 
 the Tramways Industry, 1921.
 
 48 
 
 Table I.— RATES OF WAGES IN 
 
 
 
 1914 (Dec). 
 
 1915 (Dec). 
 
 1916 (Dec). 
 
 1 
 
 BUILDINQ TRADES. 1 
 
 
 
 
 London — Bricklayers . . 
 
 1 
 
 llid.« 
 
 lljd. 
 
 1/OJ 
 
 Labourers . 
 
 
 2 
 
 7id. ! 
 
 7id. 
 
 9d. 
 
 Manchester (Grade A.) — Bricklayers. 
 
 
 3 
 
 lOid. 
 
 lid. 
 
 lid. 
 
 Labourers . 
 
 
 4 
 
 6Jd. 
 
 71d. 
 
 7id. 
 
 Exeter (Grade C.) — Bricklayers . 
 
 
 5 
 
 8id. 
 
 8id. 
 
 8id. 
 
 Labourers . 
 
 
 6 
 
 54d. 
 
 5Jd. 
 
 6d. 
 
 Glasgow — Bricklayers. 
 
 
 7 
 
 lOid. 
 
 lid. 
 
 lUd. 
 
 Labourers . 
 
 
 8 
 
 — 
 
 — 
 
 8Jd. 
 
 Hours of work per week 
 
 
 9 
 
 49i-53i 
 
 
 
 MINING INDUSTRY. 
 
 
 
 
 
 South Wales— Coal-getter 
 
 10 
 
 9/4» 
 
 12/4 
 
 15/8 
 
 Labourer (underground) 
 
 11 
 
 5/8 
 
 6/10 
 
 8/10 
 
 Durham — Coal-getter 
 
 
 12 
 
 8/2 
 
 — 
 
 12/6 
 
 Labourer 
 
 
 
 13 
 
 5/11 
 
 — 
 
 7/2 
 
 South Yorks — Coal-getter 
 
 
 
 14 
 
 10/2 
 
 — 
 
 15/1 
 
 Labourer 
 
 
 
 15 
 
 6/7 
 
 — 
 
 9/2 
 
 Lancashire and Coal-getter 
 
 
 
 16 
 
 8/6 
 
 — 
 
 12/5 
 
 Cheshire Labourer 
 
 
 
 17 
 
 5/9 
 
 — 
 
 7/11 
 
 Scotland — Coal-getter 
 
 
 
 18 
 
 8/3 
 
 — 
 
 13/9 
 
 Labourer 
 
 
 
 19 
 
 6/6 
 
 — 
 
 9/6 
 
 Hours of work per shift 
 
 
 20 
 
 S 
 
 — 
 
 — 
 
 METAL TRADES. 
 
 
 
 
 
 Engineering Industry — All male workers 
 
 
 
 
 
 (over 21 years) — 
 
 21 
 
 
 
 
 Fitters and Turners — London 
 
 
 22 
 
 43 /-6 
 
 47/- 
 
 50/- 
 
 Swansea 
 
 
 23 
 
 40/- 
 
 44/- 
 
 49/6 
 
 Tyne 
 
 
 24 
 
 37/- 
 
 41/- 
 
 44/- 
 
 Trowbridge . 
 
 
 25 
 
 27/- 
 
 27/- 
 
 27/- 
 
 Glasgow 
 
 
 26 
 
 38/3 
 
 42/6 
 
 46/1 
 
 Pattern-makers — London 
 
 
 27 
 
 48/9 
 
 52/9 
 
 55/9 
 
 Tyne 
 
 
 28 
 
 40/- 
 
 44/- 
 
 47/- 
 
 Glasgow 
 
 
 29 
 
 40/6 
 
 44/6 
 
 48/4 
 
 Machinists — London 
 
 
 30 
 
 35/- 
 
 39/- 
 
 42/- 
 
 Tyne 
 
 
 31 
 
 32/6 
 
 36/6 
 
 39/6 
 
 Labourers — London 
 
 
 32 
 
 23/-, 28/- 
 
 — 
 
 — 
 
 Tyne 
 
 
 33 
 
 23/6, 24/- 
 
 — 
 
 — 
 
 Glasgow 
 
 
 34 
 
 23/4, 27/- 
 
 — 
 
 — 
 
 Shipbuilding Industry. 
 
 
 
 
 
 Boilermakers— Platers — London 
 
 35 
 
 47/- 
 
 — 
 
 — 
 
 Barrow 
 
 36 
 
 39/9 
 
 — 
 
 — 
 
 Rivetters — London 
 
 37 
 
 40/6 
 
 — 
 
 — 
 
 Barrow 
 
 38 
 
 37/6 
 
 — 
 
 — 
 
 Holders-up — London 
 
 39 
 
 35/- 
 
 — 
 
 — 
 
 Barrow 
 
 40 
 
 32/- 
 
 — 
 
 — 
 
 Shipwrights — London 
 
 41 
 
 42/6 
 
 — 
 
 — 
 
 Barrow 
 
 42 
 
 41/6 
 
 — 
 
 — 
 
 Glasgow 
 
 43 
 
 41/7 
 
 — 
 
 — 
 
 Engineering and Shipbuilding Industrie 
 
 i 
 
 
 
 
 Women — Work rccognisfid as men's work 
 
 44 
 
 — 
 
 16/-« 
 
 20 /-7 
 
 Work rcrogniscd as women's work 
 
 45 
 
 12/-« 
 
 16 /-8 
 
 16/-' 
 
 Hours of work per week (all above) — Men .. 46 
 
 54 
 
 — 
 
 — 
 
 Women 47 
 
 64 
 
 
 
 1 The figure of maximum advances takes no account of increases of wages which 
 took place between December, 1920, and June, 1921, but were followed immediately by 
 compensating, or more than compensating, decreases. 
 
 * Trade union rate per hour. 
 
 3 Average piece-work earnings. The figures given for 1914 and 1918 are taken from 
 the Report of the Royal Commission of Earnings in the Mining Indtistry, 1919. The figures 
 given ill the other columns liave been arrived at by the addition of the various percentages 
 and war wages. They take no account of variations of output and represent only very 
 rough estimates.
 
 VARIOUS INDUSTRIES, 1914—1921. 
 
 49 
 
 
 
 
 
 
 ■Maxlmnm 
 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Dec). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 advance on 
 pre-war rates. 
 
 
 l/3i 
 
 l/5 + m% 
 
 1/111 
 
 2/4 
 
 2/2 
 
 + 143% 
 + 233% 
 + 167% 
 
 1 
 
 IIM. 
 
 i/4n-m% 
 
 1/8 
 
 2/1 
 
 l/ll 
 
 t 
 
 1/2 
 
 1/6 
 
 1/10 
 
 2/4 
 
 2/2 
 
 3 
 
 lOd 
 
 1/2 
 
 l/6i 
 
 2/1 
 
 1/11 
 
 + 284% 
 
 4 
 
 lOd. 
 
 1/- 
 
 1/5 
 
 21- 
 
 1/10 
 
 + 182% 
 + 282% 
 
 5 
 
 7id. 
 
 lOd. 
 
 1/3 
 
 1/9 
 
 1/7 
 
 6 
 
 1/1 , 
 
 l/41+12i% 
 
 l/5J + 12i% 
 
 2/4 
 
 2/2 
 
 + 167% 
 
 7 
 
 lOd. + l/- iPb'i 
 
 l/01 + 12i% 
 
 l/U + 12i% 
 
 1/llt 
 
 1/9J 
 
 + 173% 
 
 8 
 
 ' WKJ 
 
 
 
 44 
 
 
 —11%-18% 
 
 9 
 
 17/2 
 
 18/8 
 
 20/8 
 
 25/9 
 
 23/9 
 
 + 176r9 
 + 215% 
 
 10 
 
 10/4 
 
 11/10 
 
 13/10 
 
 17/10 
 
 15/10 
 
 11 
 
 14/- 
 
 15/6 
 
 17/6 
 
 22/- 
 
 20/- 
 
 + 169% 
 + 173% 
 + 147% 
 + 176% 
 
 12 
 
 8/8 
 
 10/2 
 
 12/2 
 
 16/2 
 
 14/2 
 
 13 
 
 16/7 
 
 18/1 
 
 20/1 
 
 25/1 
 
 23/1 
 
 14 
 
 10/8 
 
 12/2 
 
 14/2 
 
 18/2 
 
 16/2 
 
 IS 
 
 13/11 
 
 15/5 
 
 17/6 
 
 21/11 
 
 19/11 
 
 + 158»/i 
 
 16 
 
 9/5 
 
 10/11 
 
 12/11 
 
 16/11 
 
 14/11 
 
 + 193% 
 + ]85»4 
 
 17 
 
 15/3 
 
 16/9 
 
 18/9 
 
 23/6 
 
 21/6 
 
 18 
 
 11/- 
 
 12/6 
 
 14/6 
 
 18/6 
 
 16/6 
 
 + 184% 
 
 19 
 
 
 ~ 
 
 7 
 
 
 
 -m% 
 
 20 
 
 +20/-+12J%« 
 
 + 28/6 + 12i% 
 
 +33/6 + 12J% 
 
 +39/6 + 121% 
 
 +39/6 + 121% 
 
 
 21 
 
 70/10 
 
 80/6 
 
 86/- 
 
 93/10 
 
 93 /8t 
 
 + 134% 
 
 ->o 
 
 61/3 
 
 80/3 
 
 101/9 
 
 110/- 
 
 100/- 
 
 — 
 
 23 
 
 66/2 
 
 75/11 
 
 81/6 
 
 88/3 
 
 88/3 
 
 + 135% 
 
 24 
 
 45/- 
 
 67/6 
 
 — 
 
 75/6 
 
 75/6 
 
 — 
 
 25 
 
 66/6 
 
 76/3 
 
 81/8 
 
 88/3 
 
 88/3 
 
 + 132% 
 
 28 
 
 81/- 
 
 85/6 
 
 91/1 
 
 109/8 
 
 109/8 
 
 — 
 
 27 
 
 69/9 
 
 84/11 
 
 
 
 92/9 
 
 92/9 
 
 + 132% 
 
 28 
 
 74/8 
 
 78/6 
 
 81/8 
 
 90/6 
 
 90/6 
 
 + 122% 
 
 2» 
 
 63/- 
 
 74/9 
 
 80 '5 
 
 87/- 
 
 87/- 
 
 + 149% 
 
 30 
 
 64/1 
 
 — 
 
 — 
 
 84/4 
 
 84/4 
 
 — 
 
 81 
 
 
 — 
 
 
 
 74/9 
 
 74/9 
 
 — 
 
 32 
 
 
 
 
 
 
 
 70/10, 72/- 
 
 70/10, 72/- 
 
 — 
 
 33 
 
 — 
 
 — 
 
 — 
 
 70/1, 74/5 
 
 70/1, 74/5 
 
 — 
 
 34 
 
 
 
 
 97/4 
 
 90/7 
 
 + 107% 
 + 131% 
 + 122% 
 
 3.-> 
 
 
 
 — 
 
 
 
 91/11 
 
 85/2 
 
 35 
 
 
 
 
 
 
 
 90/- 
 
 83/3 
 
 37 
 
 
 
 
 
 
 
 88/7 
 
 81/10 
 
 + 136% 
 
 3S 
 
 
 
 
 
 
 
 83/9 
 
 77/- 
 
 + 138% 
 
 S9 
 
 
 
 
 
 
 
 81/6 
 
 74/3 
 
 + 145% 
 
 40 
 
 
 
 
 
 
 
 100/1 
 
 93/4 
 
 + 135% 
 
 41 
 
 
 
 — 
 
 
 
 92/3 
 
 85/6 
 
 + 122% 
 
 42 
 
 — 
 
 — 
 
 — 
 
 92/3 
 
 85/6 
 
 + 122% 
 
 iS 
 
 30/- 
 
 35/- 
 
 40/-, 43/68 
 
 _ 
 
 
 
 
 
 44 
 
 28/- 
 
 33/- 
 
 38/-, 41/68 
 
 88/-, 41/68 
 
 35/98 
 
 + 217%— 240% 
 
 4» 
 
 — 
 
 — 
 
 47 
 
 — 
 
 — 
 
 — 
 
 4« 
 
 48 
 
 
 ~ 
 
 " 
 
 
 
 47 
 
 • On gross earnings. 
 
 ( Trade union minimum time rates, 
 of 3/- since July, 1914. 
 
 • Midlands district. 
 ' Stjitutory rate. 
 
 I Federated firms. 
 
 The London figures (or 1914 Include an advance
 
 50 
 
 Rates of Wages in Various 
 
 METAL TRADES — continued. 
 South Wales Siemens Steel Trade. 
 
 Workpeople linviiiR weekly earninns up to 20/- 
 Workpeople having weekly earniriKs from 
 
 20/1—30/- 
 
 30/1—40/- 
 
 40/1—50/- 
 
 50/1—60/- 
 
 60/1— 70 /• 
 
 70/1-100/- 
 
 „ over 100 /- 
 
 Hours of work per shift 
 
 TEXTILE TRADES. 
 
 Cotton Industry (Nortliem counties district). 
 All Workpeople 
 Men — Card and blowing rooms 
 
 Spinners 
 
 Weavers (4-loom) 
 
 Wareliouseraen 
 Women — Card and blowing-rooms 
 
 King-spinners 
 
 Weavers (4-Ioom) . . 
 Hours of work per week 
 
 Wool industry (Yorkshire and Lancashire 
 districts). 
 All Workpeople — Timework (men & women) 
 
 Piecework (men) 
 „ ., (women) 
 
 Men — Scheduled occupations . . 
 Labourers, etc. . . 
 Warehousemen . . 
 Women . . 
 Hours of work per week— Warehousemen 
 Other sections 
 
 Linen Piece Qoods Trade. 
 
 Great Britain — Men 
 
 
 Women 
 
 Dumfermline — 
 
 Tenters and dressers 
 
 
 W'eavers 
 
 
 Other men 
 
 
 Other women 
 
 Kirkcaldy— 
 
 Tenters and dressers 
 
 
 Lappers and finishers 
 
 
 Labourers 
 
 Jute Trade. 
 
 
 Great Britain — 
 
 Men . . 
 
 
 Women 
 
 Dundee — 
 
 Men 
 
 
 Women 
 
 Flax and Hemp Trade. 
 
 Great Britam — Men Tenters 
 Dressers 
 Other men . . 
 Women Skilled 
 
 Other women 
 
 Hours of Work per week 
 
 1914 (Dec). I 1916 (Dec.). | 1916 (Dec). 
 
 12 
 
 32/-« 
 
 45/ 50/-3 
 
 28/ 32 /-8 
 
 24/-» 
 
 20/ 29 /-s 
 
 16/ 24 /-3 
 
 28/ 32 /-3 
 
 55\ 
 
 28/- 
 
 + 15% 
 
 + 20% 
 + 15% 
 + 10% 
 + 10% 
 + 10% 
 + 10% 
 + 10% 
 
 52J 
 55i 
 
 28/ 40/-» 
 
 17/ 24/-J 
 
 23/ 25/- 
 
 18/ 20/- 
 
 56 
 
 + 7J% 
 + 7J% 
 + 7i% 
 
 + 4/- 
 +4/- 
 
 +27i% 
 
 + 5% 
 
 + 25% 
 +25% 
 + 25% 
 
 + 6/- 
 + 6/- 
 
 1 A fall of 1% to J % for each 1 /- increase in base earnings. 
 ' Trade imion standard time rates. 
 ' Average piecework earnings. 
 
 ♦ Special additional increase. 
 
 * Revised basic rate.
 
 Industries, 1914 — 1921 — continued. 
 
 61 
 
 
 1 
 
 1 
 
 
 
 Maximum 
 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Dec). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 advanfc nn 
 pre-war rates. 
 
 
 + 52J% 
 
 1 
 
 +621% 
 
 + 125% 
 
 + 175% 
 
 + 120% 
 
 + 175% 
 
 1 
 
 + 72i% 
 
 +95% 
 
 + 140% 
 
 + 190% 
 
 + 120% 
 
 4-190% 
 
 2 
 
 +67}% 
 +62}% 
 
 ; +85% 
 
 + 139%i 
 
 + 189% 
 
 + 110% 
 
 + 189%— 180% 
 
 S 
 
 + 75% 
 
 1 
 
 1 
 
 + 110% 
 
 + 179%— 170 "^o 
 
 4 
 
 +60% 
 
 + 70% 
 
 rt- 
 
 r* 
 
 + 110% 
 
 + 169%— 160% 
 
 5 
 
 + 50% 
 
 + 55% 
 
 O 
 
 o 
 
 + 110»^ 
 
 + 1591%— 155% 
 
 6 
 
 + 42% 
 
 + 45% 
 
 1 
 
 1 
 
 + 110% 
 
 + 1541% -140% 
 
 7 
 
 + 40% 
 
 + 421% 
 
 + 75% 
 
 + 125% 
 
 + 110% 
 
 + 1391%— 125% 
 
 8 
 
 
 
 8 
 
 
 
 —33% 
 
 9 
 
 + 35% 
 
 %110 + 
 
 + 140% 
 
 + 210% 
 + 10%* 
 
 + 150% 
 
 + 210% 
 
 10 
 
 — 
 
 — 
 
 — 
 
 — 
 
 + 220% 
 
 11 
 
 — 
 
 — 
 
 — 
 
 
 — 
 
 + 210% 
 
 12 
 
 — 
 
 — 
 
 — 
 
 — 
 
 — 
 
 + 210% 
 
 13 
 
 — 
 
 — 
 
 (22/1)6 
 
 + 5%« 
 
 — 
 
 + 215% 
 
 14 
 
 — 
 
 — 
 
 — 
 
 
 — 
 
 + 210% 
 
 15 
 
 — 
 
 — 
 
 — 
 
 — 
 
 — 
 
 + 210% 
 
 16 
 
 — 
 
 — 
 
 — 
 
 — 
 
 — 
 
 + 210% 
 
 17 
 
 
 
 
 48 
 
 ~ 
 
 ~ 
 
 —14% 
 
 18 
 
 + 60% 
 
 + 104% 
 
 + 10% + 125% 
 
 + 15% +175% 
 
 + 15% + 135% 
 
 +216% 
 
 19 
 
 + 48% 
 
 +83% 
 
 + 10% + 100% 
 
 + 15% + 144% 
 
 + 15% +111-119% 
 
 + 181% 
 
 20 
 
 + 51% 
 
 + 89% 
 
 + 10% + 106% 
 
 + 15% + 152% 
 
 + 15% +117-120% 
 
 + 100% 
 
 21 
 
 — 
 
 — 
 
 — 
 
 91/58 
 
 78/118 
 
 — 
 
 22 
 
 — 
 
 — 
 
 — 
 
 87/- 
 
 75/- 
 
 — 
 
 23 
 
 — 
 
 — 
 
 68/10" 
 
 92/- 
 
 79/4 
 
 +228% 
 
 24 
 
 — 
 
 — 
 
 39/11 
 
 53/9 
 
 45/111 
 
 — 
 
 25 
 
 — 
 
 — 
 
 48 
 
 — 
 
 — 
 
 — 9% 
 
 26 
 
 
 
 48 
 
 
 
 —u% 
 
 27 
 
 
 
 
 
 60/ -10 
 
 
 28 
 
 — 
 
 — 
 
 — 
 
 36/-10 
 
 37 MO 
 
 — 
 
 29 
 
 — 
 
 — 
 
 — 
 
 68/ 78/- 
 
 68/ 78/- 
 
 + 143°i--l95% 
 
 30 
 
 — 
 
 — 
 
 — 
 
 + 125% 
 
 + 125% 
 
 + 125% 
 
 31 
 
 — 
 
 — 
 
 — 
 
 50/ 58/- 
 
 60 /-*o 
 
 + 253%— 1500^ 
 
 32 
 
 — 
 
 — 
 
 — 
 
 + 100% 
 
 + 100% 
 
 + 100% 
 
 33 
 
 — 
 
 — 
 
 — 
 
 84/8 
 
 70'- 
 
 — 
 
 34 
 
 — 
 
 
 
 — 
 
 82/2 
 
 66/3 
 
 — 
 
 85 
 
 — 
 
 — 
 
 — 
 
 69/10 
 
 57/9 
 
 — 
 
 30 
 
 _ 
 
 _ 
 
 
 50/-W 
 
 50 /-IP 
 
 
 87 
 
 — 
 
 
 — 
 
 32 /-»o 
 
 32 /-lo 
 
 
 
 38 
 
 + 18/- 
 
 +20/- 
 
 +20/- 
 
 +31/- 
 
 + 31/- 
 
 
 
 89 
 
 + 11/- 
 
 + 15/- 
 
 + 15/- 
 
 + 23/- 
 
 + 23/- 
 
 — 
 
 40 
 
 _ 
 
 _ 
 
 
 
 70 '-10 
 
 
 41 
 
 — 
 
 — 
 
 — 
 
 — 
 
 65 /-lo 
 
 
 
 42 
 
 — 
 
 — 
 
 — 
 
 54 /-lO 
 
 60 /-lo 
 
 
 
 43 
 
 — 
 
 — 
 
 
 
 
 
 36 -10 
 
 
 
 44 
 
 — 
 
 — 
 
 — 
 
 82/-H> 
 
 32 -10 
 
 — 
 
 45 
 
 
 
 — 
 
 48 
 
 ~ 
 
 — 13% 
 
 46 
 
 * Increase on ba.<<ic rate bearing no cost-of-living wage. 
 ' Increase on basic rate bearing cost-of-living wage. 
 
 * Minimum time-rates including all advances. 
 
 * Time rates in general operation. 
 10 Trade Board rate.
 
 52 
 
 Rates of Wages in Various 
 
 TEXTILE TRADES— continued. 
 
 Hosiery Trade (Leirestcr, Loughboro", Not- 
 tingham, Mansfield, Sutton-in-Ashfleld, 
 Ilkeston, Derby. Hinckley and Coventry 
 
 districts) — Men . . . . . . i 
 
 Women . . . . . . 2 
 
 Hours of work per Week .. .. 3 
 
 Silk Trade. 
 
 Leek — Men — Machine fettlers . . 4 
 
 Other men . . . . 5 
 
 Women . . . . . . 6 
 
 Brighouse — Men 
 
 Women 
 Hours of Work per week . . 
 
 Carpet Trade — (Great Britain). 
 
 All workpeople — Time workers . . . . 10 
 
 Piece workers . . , . . li 
 
 Hours of Work per week . . . . 12 
 
 Dyeing, Bleaching and Finishing Trades. 
 
 Lancashire, Cheshire and Derbyshire 
 
 (calico trade) — Men . . . . 13 
 
 Women . . 14 
 
 Scotland — Men . . . . 15 
 
 Women . . 16 
 
 Yorkshire (cloth trade) — Men . . . . 17 
 
 Women . . 18 
 
 Hours of Work per week — England . . 19 
 
 Scotland . . 20 
 
 CLOTHING TRADES. 
 
 Tailoring Trade (England and Wales) — 
 
 Journeymen Tailors (London) . . . . 21 
 
 Eeady-made and Wholesale Bespoke — 
 
 Measure cutters (London) . . 22 
 
 Cutters and knifemen (London) 23 
 
 Measure cutters . . . . 24 
 
 Knifemen and pressers-off . . 25 
 Stock-cutters, fitters-up, Tailors 
 
 and passers . . . . 26 
 
 Men (unclassified) — 22 yrs. and 
 
 over . . . . . . 27 
 
 Women — 18 yrs. and over . . 28 
 
 Hours of Work per week 29 
 
 Boot and Shoe Trade (England and Wales). 
 Men — Clicking and other skilled depart- 
 ments . . . . . . 30 
 
 Heel building, stock and show- 
 rooms . . . . . . 31 
 
 Women — 1st class operations . . . . 32 
 
 2nd class operations . . . . 33 
 
 Hours of Work per week — Men . . . . 34 
 
 Women . . 35 
 
 Qlove Trade — Leather Section (Worcester, 
 Yeovil and other centres). 
 
 Men— Skilled 36 
 
 Semi-skilled 37 
 
 Women . . .... . . . . 38 
 
 Hours of Work per week — Men .. ..I 39 
 
 Women . . 40 
 
 1914 (Dec). 
 
 40/- 
 
 25/- 
 
 53 
 
 28 /-a 
 
 23 /-a 
 
 12/(^— 15/-« 
 
 62^ 
 
 28l-» 
 15 /-2 
 
 27 /-s 
 
 28/-> 
 
 55i 
 S6i 
 
 (7Jd.)S 
 
 lOd.* 
 lOd.* 
 9}d.* 
 8id.« 
 
 8id.4 
 
 6d.5 
 
 3id.6 
 
 48—50 
 
 30/-8 
 
 27/- 
 18/- 
 17/- 
 
 53h 
 
 30/- 
 
 1915 (Dec). 
 
 + 8J% 
 + 8i% 
 
 1916 (Dec). 
 
 + 19% 
 
 + 19% 
 
 31/- 
 
 (71d.> 
 
 lOd. 
 lOd. 
 9id. 
 8id. 
 
 8id. 
 
 6d.s 
 3id.5 
 
 32/- 
 29/- 
 
 35/- 
 19 /7J 
 
 (7id. 
 
 lOd. 
 lOd. 
 9Jd. 
 Sid. 
 
 8id- 
 
 6d.8 
 3id.6 
 
 33/- 
 30/- 
 
 1 Average piecework earnings. 
 
 * Trade union standard time rates. 
 
 3 Rate per " log " hour, estimated roughly at thirty minutes' work. 
 
 * Trade union standard rate per hour.
 
 Industries, 1914 — 1921 — continued. 
 
 53 
 
 1917 (Dec). 
 
 1918 (Doc.) 
 
 1910 (Dec). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 Maxiraum 
 
 advance on 
 
 pre-war rates. 
 
 
 + 31% 
 
 + 31% 
 
 + 54% 
 + 54% 
 
 %+10/- 
 + 75% +6/- 
 
 + 125% 
 
 + 125% 
 
 48 
 
 + 110% 
 + 100% 
 
 + 125% 
 
 + 125% 
 
 -9% 
 
 1 
 2 
 3 
 
 — 
 
 48/- 
 
 43/- 
 
 26/ 27/6 
 
 48/- 
 
 43/- 
 
 26/ 27/6 
 
 73/- 
 
 66/6 
 
 40/6 
 
 + 175% 
 
 + 175% 
 
 S2i 
 
 67/- 
 
 60/6 
 
 36/- 
 + 135% 
 + 135% 
 
 + 161% 
 
 + 189% 
 
 + 188%— 140% 
 
 4 
 6 
 6 
 7 
 8 
 
 
 — 
 
 — 
 
 — 
 
 + 160% 
 + 170% 
 
 + 110% 
 + 120% 
 
 + 160% 
 + 170% 
 
 10 
 11 
 12 
 
 46/6 
 26/61 
 
 58 /It 
 33/10 
 57 /li 
 30/10 
 
 64/3 
 39/7 
 63/3 
 36/7 
 
 48 
 48 
 
 77/7 
 47/6 
 76/7 
 44/6 
 91/5 
 53/9 
 
 68/3 
 
 41/11 
 
 67/3 
 
 38/11 
 
 78 /U 
 
 45/Ui 
 
 
 
 + 178% 
 + 198% 
 + 181% 
 
 + 226% 
 
 —14% 
 
 —is% 
 
 IS 
 
 14 
 15 
 16 
 
 17 
 18 
 19 
 20 
 
 (8d.) 
 
 (lOid.) 
 
 (1/1) 
 
 (1/3) 
 
 (1/U) 
 
 ( + 100%) 
 
 21 
 
 lld. + lid.» 
 lld. + Ud.« 
 9id. + Ud.« 
 81d. + lid.« 
 
 l/- + 3d.« 
 l/- + 3d.8 
 9id.+3d.« 
 8|d.+3d.« 
 
 l/- + 3d.fl 
 l/-+3d.« 
 
 1/55 
 
 1/.5S 
 
 l/llF 
 1/91S 
 1/95 
 1'75 
 
 2/215 
 2/OiS 
 2/-5 
 1/105 
 
 + 162% 
 + 142°o 
 + 153% 
 + 151% 
 
 22 
 23 
 24 
 25 
 
 8id. + Ud.« 
 
 8ld.+3d.« 
 
 1/58 
 
 1/75 
 
 1/105 
 
 + 167% 
 
 26 
 
 7-8d.B + Ud.« 
 4-4Jd.6 + ld.8 
 
 8d.6 + 3d.« 
 5d.5 + 2d.« 
 
 1/15 
 
 81d.6 
 4S 
 
 1/25 
 
 9id.« 
 
 1/415 
 
 lOd.5 
 
 + 171% 
 +208% 
 —0%—4% 
 
 27 
 28 
 29 
 
 40/- 
 
 55/- 
 
 56/- 
 
 68/- 
 
 68/- 
 
 + 126% 
 
 30 
 
 37/- 
 
 52/- 
 26/- 
 
 25/- 
 
 53/- 
 
 30/- 
 
 30/- 
 
 48 
 
 48 
 
 65/- 
 40/- 
 40/- 
 
 65/- 
 40/- 
 40/- 
 
 + 141% 
 + 122% 
 + 137% 
 —9% 
 —10% 
 
 31 
 32 
 33 
 34 
 35 
 
 — 
 
 — 
 
 mi- 
 
 48/- 
 
 36/- 
 
 47 
 
 44 
 
 60/- + 22i% 
 48/- + 22i% 
 36/- + 22t% 
 
 60/- 
 48/- 
 36/- 
 
 + 145% 
 
 SO 
 37 
 38 
 39 
 40 
 
 5 Trade Board general minimnm rate. Piece-workera are entitled to a minimum 
 basis time-rate, fixed at IJil. per liour above the' generai ininiraura time-rate (or men, 
 and Id. per liotir above the geniT.tl minimum time-rate for women. 
 
 « Committee on Pro(l\iction award. 
 
 ^ Estimated weeliiy time-rate. 
 
 8 Trade union minimum time-rate.
 
 54 
 
 Rates of Wages in Various 
 
 
 
 
 1914 (Dec). 
 
 1915 (Dec). 
 
 1916 (Dec). 
 
 TRANSPORT. 
 
 Railways. 
 
 Manual Workers — All railwaymen 
 
 1 
 
 
 + 5/- 
 
 + 10/- 
 
 Goods Guards . . 
 
 2 
 
 25/ 35 /-I 
 
 — 
 
 — 
 
 Passenger Guards 
 
 3 
 
 21/ 32/- 
 
 — 
 
 — 
 
 Shunters — London 
 
 4 
 
 26/ 33/- 
 
 — 
 
 — 
 
 Industrial districts 
 
 5 
 
 23/ 32/- 
 
 — 
 
 — 
 
 Rural districts 
 
 6 
 
 20/ 28/- 
 
 — 
 
 — 
 
 Goods Porters — London 
 
 7 
 
 20/ 24/- 
 
 — 
 
 — 
 
 Industrial districts 
 
 8 
 
 19/ 23/- 
 
 — 
 
 — 
 
 Rural districts 
 
 9 
 
 15/ 21/- 
 
 — 
 
 
 Passenger Porters — London . . 
 
 10 
 
 16/ 17/-* 
 
 — 
 
 
 Industrial districts 
 
 11 
 
 18/ 19/- 
 
 — 
 
 — 
 
 Rural districts . . 
 
 12 
 
 20/- 
 
 — 
 
 — 
 
 Ticket Collectors — London 
 
 13 
 
 22/ 29/- 
 
 — 
 
 — 
 
 Industrial districts 
 
 14 
 
 20/ 26/- 
 
 — 
 
 — 
 
 Rural districts 
 
 15 
 
 18/ 23/- 
 
 — 
 
 — 
 
 Goods Checkers— London 
 
 16 
 
 24/ 30/- 
 
 — 
 
 — 
 
 Industrial districts 
 
 17 
 
 21/ 30/- 
 
 — 
 
 — 
 
 Rural districts 
 
 18 
 
 18/ 26/- 
 
 — 
 
 — 
 
 Plate-layers — London . . 
 
 19 
 
 24/ 27/- 
 
 — 
 
 ~ 
 
 Industrial districts 
 
 20 
 
 20/ 25/- 
 
 — 
 
 
 Rural districts 
 
 21 
 
 18/ 20/- 
 
 — 
 
 — 
 
 Signalmen — London 
 
 22 
 
 — 
 
 — 
 
 — 
 
 Industrial districts 
 
 23 
 
 25/43 
 
 — 
 
 — 
 
 Rural districts 
 
 24 
 
 — 
 
 — 
 
 — 
 
 Drivers . . 
 Firemen . . 
 Hours of work per Week 
 
 Clerks (over 18 years) — Class I. 
 
 nass II. 
 
 25 
 26 
 27 
 
 28 
 
 29 
 
 30/ 48/-« 
 
 18/ 30/-« 
 
 60 
 
 (average) 
 
 £75— £2006 
 
 (p.a.) 
 £150— £175 
 
 + 5/-P.W. 
 +5/-P.W. 
 
 Ill 22 
 + + 
 
 Class nL 
 
 30 
 
 £120— £150 
 
 +5/-P.W. 
 
 + 10/- 
 
 Class IV. 
 
 31 
 
 £100— £120 
 
 + 5/-P.W. 
 
 + 10/- 
 
 Class V. 
 
 32 
 
 £40— £100 
 
 + 5/-P.W. 
 
 + 10/- 
 
 Hours of Work 
 
 33 
 
 48 
 
 — 
 
 — 
 
 *• Time rates In operation on various railways. 
 
 * Uniform time-rates, inclusive of cost-of-living wage. The revised standard basic 
 rates are given in brackets. 
 
 * No account is taken of tips. 
 3 Average earnings. 
 
 * No account is taken of mileage allowances.
 
 Industries, 1914 — 192l — continued. 
 
 55 
 
 1917 (Dec), i 1918 (Dec). 
 
 + 21/- 
 
 + 33/- 
 
 +21/- 
 +21/- 
 + 21/- 
 + 21/- 
 +21/- 
 
 + 33/- 
 + 33/- 
 +83/- 
 +33/- 
 
 + 23/- 
 
 I I Maximum 
 
 1919 (Dec). I 1920 (Dec). ! 1921 (June), i advance on 
 I pre-war rates. 
 
 +38/- 
 
 48 
 
 £320— £3509 
 
 +£2.")' 
 £270— £300 
 
 +£25 
 £240— £200 
 + £25— £27" 
 £210— £230 
 
 + £25 
 
 £ft0— £200 
 
 + £75'*— £26 
 
 48 
 
 72/ 82/6* 
 
 (50/ 65/-) 
 
 72/ 82/6 
 
 (50/ 65/-) 
 
 72/ 82/6 
 
 (50/ 65/-) 
 
 72/ 82/6 
 
 (50/ 65/-) 
 
 69/6 —76/- 
 
 (50/ 55/-) 
 
 72/6 
 
 (47/-) 
 71/6 
 
 (44/-) 
 66/- 
 (40/-) 
 
 69/ 71/6 
 
 (40/ 46/-) 
 
 67 / 71 /6 
 
 (40/ 43/-) 
 
 65/ 69/6 
 
 (40/ 43/-) 
 
 73/ 78/- 
 
 54/ 58/-) 
 
 73/ 78/- 
 
 (54/ .58/-) 
 
 70/6 —75/- 
 
 (54/ 58/-) 
 
 78/6 
 
 (57/-) 
 76/6 
 
 (54/-) 
 71/6 
 
 (47/-) 
 
 74/ 75/-, 
 
 (48/ 50/-) 
 
 71/6 
 
 (44/-) 
 
 67/- 
 
 (40/-) 
 
 78 / 81 /- 
 
 (65/ 70^-) 
 
 72/ 75/- 
 
 (55/ 60/-) 
 
 67/ 69/- 
 
 (46/ 50/-) 
 
 88/ 106/- 
 
 70/ 88/- 
 
 £320 '1350 
 
 +£35 
 £270— £300 
 
 + £35 
 £240— £260 
 + £35—37 
 £210—230 
 -f-£35 
 £80 -£200 
 +£8.5—35 
 
 69/ 79/6 
 
 69/ 79/6 
 
 69/ 79/6 
 
 69/ 79/6 
 
 66/6 —73/- 
 
 69/6 
 
 68/6 
 
 63/- 
 
 66/ 68/6 
 
 64/ 68/6 
 
 62/ 66/6 
 
 70/ 75/- 
 
 70/ 75/- 
 
 67/6 —72/- 
 
 75/6 
 
 73/6 
 
 68/6 
 71/ 72/- 
 
 68/6 
 
 64/- 
 
 75/ 78/- 
 
 69/ 72/- 
 
 64/ 66/- 
 
 85/ 103/- 
 
 67/ 83/- 
 
 £320— £350 
 
 +£20 
 £270— £300 
 
 + £20 
 £240— £260 
 +£20— £22 
 £210— £230 
 +£20 
 £80—200 
 +£70— £20 
 
 + 188%— 136% 
 +243%— 158% 
 + 177%— 150% 
 +213%— 158% 
 +247%— 171% 
 +262%— 202% 
 +276%— 211% 
 + 340%— 214% 
 + 331%— 321% 
 +272%— 276% 
 +225%— 247% 
 + 232%— 169% 
 + 265%— 200% 
 +292%— 226% 
 + 227%— 162% 
 + 265%— 155% 
 + 297%— 175% 
 +208%— 178% 
 +258%— 186% 
 +272%— 235% 
 
 + 193%— 121% 
 +289%— 193% 
 —20% 
 
 + 103%— 92% 
 
 + 103%— 91% 
 
 + 127%— 98% 
 
 + 145%— 121% 
 
 +312%— 135% 
 
 • London and North Western Railway. 
 
 • Revised basis salaries. 
 ' Cost-of-living bonus. 
 
 • Including residue of war bonus.
 
 66 
 
 Rates of Wages in Various 
 
 
 
 1914 (Dec). 
 
 1915 (Dec). 
 
 1916 (Deo.). 
 
 TRANSPORT— continued. 
 
 
 
 
 
 Road Transport. 
 
 Carters — London l-horse . . 
 
 
 
 
 
 1 
 
 27 /-I 
 
 30/- 
 
 31/8 
 
 2-horse . . 
 
 2 
 
 31/- 
 
 34/- 
 
 35/8 
 
 S-horse . . 
 
 8 
 
 24/- 
 
 37/- 
 
 38/8 
 
 4-hor8e . . 
 
 4 
 
 88/- 
 
 41/- 
 
 42/8 
 
 Certain Lancashire towns — l-horse . . 
 
 5 
 
 25/6 
 
 
 — 
 
 2-horse . . 
 
 6 
 
 28/- 
 
 — 
 
 — 
 
 Certain llidJand towTis — l-horse . . 
 
 7 
 
 24/- 
 
 — 
 
 — 
 
 2-horse . . 
 
 8 
 
 
 — 
 
 — 
 
 Motor Drivers — London — 
 
 
 
 
 
 Steam wagons (drivers) 
 
 9 
 
 40/- 
 
 — 
 
 — 
 
 (mates) 
 
 10 
 
 25/- 
 
 — 
 
 — 
 
 Motor Vans (over 2 tons) 
 
 11 
 
 40/- 
 
 — 
 
 — 
 
 (15 ewt. to 2 tons) 
 
 12 
 
 32/- 
 
 — 
 
 — 
 
 (under 15 ewt.) . . 
 
 13 
 
 20/- 
 
 — 
 
 — 
 
 Tramway Workers — London — Drivers 
 
 14 
 
 40/- 
 
 43/- 
 
 48/- 
 
 Conductors 
 
 15 
 
 33/- 
 
 36/- 
 
 41/- 
 
 Large Towns — Drivers 
 
 16 
 
 37/- 
 
 — 
 
 
 Conductors 
 
 17 
 
 80/- 
 
 — 
 
 — 
 
 Small Towns — Drivers . . 
 
 18 
 
 26/ 30/- 
 
 — 
 
 — 
 
 Conductors 
 
 19 
 
 20/ 24/- 
 
 — 
 
 — 
 
 Hours of Work per week 
 
 20 
 
 48—54 
 
 — 
 
 — 
 
 Water Transport. 
 
 
 
 
 
 Dockers. — London — Port of London 
 
 
 
 
 
 Autliority 
 
 21 
 
 5/33 
 
 5/9 
 
 6/3 
 
 Ocean and short sea ship work 
 
 22 
 
 7 /4— 8-4S 
 
 — 
 
 — 
 
 Large Ports — General cargo work 
 
 23 
 
 4/6—5/- 
 (Liverpool) 
 
 — 
 
 — 
 
 Timber, coal-hauling, etc. 
 
 24 
 
 
 
 — 
 
 Small Ports— General cargo work 
 
 2.-> 
 
 — 
 
 — 
 
 — 
 
 Timber, coal-hauling, etc. 
 
 26 
 
 — 
 
 — 
 
 — 
 
 Lightermen — London — General work 
 
 27 
 
 6/- 
 
 6/8 
 
 7/4 
 
 Rough goods work 
 
 28 
 
 48/-» 
 
 52/- 
 
 56/- 
 
 Watchman 
 
 29 
 
 5/- 6/-8 
 
 — 
 
 — 
 
 River Tugs — Captain 
 
 30 
 
 70 /-4 
 
 — 
 
 — 
 
 Mate 
 
 31 
 
 42/- 
 
 — 
 
 — 
 
 Driver 
 
 32 
 
 47/6 
 
 — 
 
 — 
 
 Fireman 
 
 33 
 
 34/- 
 
 — 
 
 — 
 
 Hours of Work per week 
 
 34 
 
 — 
 
 — 
 
 ~ 
 
 Merchant Shipping. 
 
 
 
 
 
 Able seamen, sailors, deck hands . . 
 
 35 
 
 £5/107 
 
 £7— £7/10 
 
 £8/10 
 
 Ordinary seamen 
 
 36 
 
 £2/15 
 
 £3/5 
 
 £3/13 
 
 Bosun . . 
 
 37 
 
 £6/10— £7 
 
 £7/10— £9 
 
 £10 
 
 Chief Steward (cargo boats) 
 
 38 
 
 £7/10— £9 
 
 £8— £9/10 
 
 £10/6— £11/18 
 
 Assistant steward (cargo boats) 
 
 39 
 
 £4— £4/10 
 
 £6— £6/10 
 
 £7— £7/10 
 
 Hours of Work per week 
 
 40 
 
 — 
 
 — 
 
 — 
 
 AGRICULTURE. 
 
 
 
 
 
 England and Wales — 
 
 
 
 
 
 Men — Ordinary workers — Highest county 
 
 41 
 
 23/49 
 
 — 
 
 — 
 
 rate 
 
 
 (N'thumberl'd) 
 
 
 
 Lowest county rate 
 
 42 
 
 13/4 
 
 — 
 
 — 
 
 
 
 (Oxford) 
 
 — 
 
 — 
 
 Specially skilled workers — Highest 
 
 
 
 
 
 county rate 
 
 43 
 
 — 
 
 — 
 
 — 
 
 Lowest county rate 
 
 44 
 
 — 
 
 — 
 
 — 
 
 Women — National rate 
 
 45 
 
 
 
 15/- 
 
 1 Weekly time-rates. 
 
 2 Heavy costs. 
 
 8 Standard rate per day, 
 
 * Time-rates in general operation. 
 
 6 National minimum wage.
 
 Industries, 1914 — 1921 — continued. 
 
 67 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Dec). 
 
 1920 (Dec). 1921 (June) 
 
 Maximum 
 
 advance on 
 
 pre-war rates. 
 
 42/- 
 46/- 
 49/- 
 53/- 
 
 55/- 
 48/- 
 
 8/3 
 
 7/4 
 74/- 
 
 £11 
 £3/15 
 £12 
 £11/5— £13/1') 
 £1()— £10/10 
 
 25 /JO 
 
 18/- 
 
 57/- 
 61/- 
 64/- 
 68/- 
 
 70/- 
 63/- 
 
 61/- 
 65/- 
 
 68/- 
 72/- 
 59/- 
 64/- 
 
 74/- 
 59/- 
 54/- 
 66/- 
 74/- 
 75/- 
 68/- 
 72/- 
 65/- 
 65/- 
 59/- 
 
 70/- 
 
 74/- 
 77/- 
 81/- 
 70/- 
 73/- 
 67/- 
 70/- 
 
 83/- 
 68/- 
 83/- 
 75/- 
 63/- 
 80/- 
 73/- 
 77/- 
 70/- 
 70/- 
 64/- 
 48 
 
 66/- 
 70/- 
 73/- 
 77/- 
 66/- 
 69/- 
 64/- 
 67/- 
 
 79/- 
 64/- 
 79/- 
 71/- 
 59/- 
 
 9/8 
 
 11/4 
 80/- 
 
 £14/10 
 
 £8/108-^10 
 
 £16 
 
 £21— £23 
 
 £13 
 
 36/- 
 
 30/- 
 (16 counties) 
 
 40/- 
 
 36/- 
 
 5d. & 6d. per hr. 
 
 11/8 16 /-5 
 
 12/8—14/- 17/6— 20 /6« 
 
 11/8—12/2 16/- 
 
 17/ 19/8 
 
 15 /-5 
 16 /-s 
 16 /-s 
 17/9nightwork 
 108/- 
 16/- 
 17 /9 nightwork 
 145/- 
 113'- 
 105/6 
 96/- 
 44—46 
 
 : 11/4 
 
 ,12/6nightwork 
 I 80 /- 
 
 10/4 
 
 11/6 nightwork 
 
 117/6 
 
 85/- 
 
 77/- 
 
 64/- 
 
 £14/10 
 
 £8/10— £10 
 
 £16 
 
 £21— £23 
 
 £13 
 
 42/6 
 
 36/6 
 (35 counties) 
 
 50/- 
 42/6 
 6d. &6d. 
 
 £14/10 
 
 £8/10— £10 
 
 £16 
 
 £24— £26 
 
 £13 
 
 60/6" 
 
 46/- 
 
 64/- 
 52/6 
 7d. 
 
 16/- 
 
 17/6—20/6* 
 
 16/- 
 
 17/ 19/8 
 
 15/- 
 16/- 
 16/- 
 
 + 159% 
 + 139% 
 + 126% 
 + 113% 
 + 175% 
 + 161% 
 + 179% 
 
 + 107% 
 
 + 172% 
 
 + 107% 
 
 + 134% 
 
 + 215% 
 
 + 100% 
 
 + 121% 
 
 + 108% 
 
 + 133% 
 + 169%— 133% 
 + 220%— 167% 
 -0%—ll% 
 
 + 205% 
 + 139%— 146% 
 +256%— 220% 
 
 £12 
 
 £7/5— £8/15 
 
 £13/10 
 
 £21/10— £23/10 
 
 £10/10 
 
 60/0 
 46/- 
 
 64/- 
 62/6 
 8d. 
 
 + 167% 
 
 + 125% 
 + 220%— + 
 
 + 107% 
 + 169% 
 + 122% 
 + 176% 
 
 4 
 5 
 6 
 7 
 8 
 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 
 I 28 
 167% 29 
 
 30 
 31 
 32 
 33 
 34 
 
 + 164% 35 
 
 + 209%— 264% 36 
 
 + 146%— 128% 37 
 
 + 220%— 189% 38 
 
 + 225%— 189% 39 
 
 — 40 
 
 + 116% 
 
 + 245% 
 
 • Special rates for timber work. 
 
 ' Montlily rate. Food is provided in addition. 
 
 • Ordinary seamen witli less tlian twenty-four montiis' so.i service. 
 
 • Weekly earnings, Including cash allowances (Labour Oatette llgure?) 
 1" Minimum time-rates under the Com Production Act.
 
 58 
 
 Rates of Wages in Various 
 
 1914 (Dec). 
 
 1916 (Dec), 
 
 1916 (Dec), 
 
 AQRICULTURE— continued. 
 Scotland — 
 
 Men — Ordinary workers — 
 
 Highest cotinty rate 
 Lowest county rate 
 Specially skilled workers — 
 
 Highest county rate 
 
 Lowest county rate 
 
 Women — Highest county rate 
 
 Lowest county rate 
 
 Hours of work per week — 
 
 England and Wales — 
 
 Men — Ordinary workers 
 
 Specially skilled workers 
 Women . . 
 Scotland — 
 
 PRINTING TRADES. 
 
 Correctors of the press — London . . 
 Compositors — London 
 
 Grade I. towns 
 
 Grade VI. towns 
 
 Linotype and monotype operators — 
 
 London 
 
 Grade I. towns 
 
 Grade VI. towns 
 Lithographic printers — 
 
 London 
 
 Grade I. towns 
 
 Grade III. towns (highest 
 grade) 
 
 Assistants, warehousemen and cutters — 
 
 London 
 
 Grade I. towns 
 
 Grade V. towns (highest 
 grade) 
 Women — London 
 
 Grade I. towns 
 
 Grade VI. towns 
 Hours of Work per week . . 
 
 FURNISHING TRADES. 
 
 Men — London — Cabinet-maker 
 
 Machine-men 
 
 Manchester — 
 Birmingham- 
 Glasgow — 
 Women — London — 
 
 Birmingham- 
 Hours of Work per week 
 
 French polishers 
 Upholsterers 
 (all above) 
 (all above) 
 (all above) 
 French polishers 
 Upholstresses 
 (all above) 
 
 PACKING-CASE TRADE, 
 
 London — Packing-case-makers, sawyers 
 and coopers 
 Manchester — do. 
 
 Birmingham — do. 
 
 GlasgfiW — do. 
 
 Hours of Work per week , . 
 
 20 
 
 44 M 
 
 39/- 
 
 38/- 
 (Liverpool) 
 
 25/- 
 (Folkestone) 
 
 44/- 
 
 40/- 
 
 36/6 
 
 (Liverpool) 
 
 33/- 
 (Bxeter) 
 
 17/- 
 49— SI 
 
 lljd.* 
 
 9Jd. 
 lOd.— 1/- 
 8id.— lOd. 
 
 8d.— 8id. 
 
 7d.— lOd. 
 
 48—54 
 
 46/- 
 42/- 
 
 49/- 
 45/- 
 
 27/ 30/- 
 
 llid. 
 
 1/1 
 
 1 Trade udIod standard time-rates.
 
 Industries, 1914 — 1921 — continued. 
 
 59 
 
 1917 (Dec). 
 
 1918 (Dec). 1919 (Dec). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 Maximam 
 
 advanre od 
 
 pre-war rates. 
 
 25/- 
 
 67/- 
 68/- 
 
 76/6 
 72/6 
 70/- 
 
 58/- 
 
 1/8 
 
 1/7* 
 
 38/- 
 30/- 
 
 42/- 
 31/- 
 
 i8—54 
 48—63 
 48—50 
 62—60 
 
 89/- 
 85/- 
 81/- 
 
 66/- 
 
 90/- 
 89/6 
 
 72/- 
 
 85/- 
 80/- 
 
 75/6 
 
 78/6 
 78/- 
 
 63/- 
 45/6 
 36/6 
 30/6 
 48 
 
 21- 
 2/1 
 2/- 
 21- 
 1/11 
 1/9 
 1/8J— 1/11 
 
 -47 
 
 41/- 
 30/- 
 
 50/- 
 31/- 
 30/- 
 18/- 
 
 104/- 
 
 100/- 
 
 97/6 
 
 82/6 
 
 105/- 
 106/- 
 
 88/6 
 
 100/- 
 95/- 
 
 92/- 
 
 93/6 
 94/6 
 
 79,6 
 
 49/- 
 43/- 
 37/- 
 
 2/4 
 
 2/4 J 
 
 2/4 
 
 2/4 
 
 2/4 
 
 2/2 
 
 21- 
 
 1/6 
 
 l/2t 
 
 1/1 
 
 41/- 
 30/- 
 
 50/- 
 31/- 
 30/- 
 
 18/- 
 
 104/- 
 
 100/- 
 
 97/6 
 
 82/6 
 
 105/- 
 106/- 
 
 88/6 
 
 100/- 
 95/- 
 
 92/- 
 
 93/6 
 94/6 
 
 79/6 
 49/- 
 43/- 
 37/- 
 
 2/2 
 2/2 
 2/lt 
 2/2 
 
 l/3i 
 1/lf 
 
 —20%— 17% 
 
 1/10—1/11 
 
 2/ 2/2 
 
 1/lOJ— 2/OJ 
 
 1/10—1/11 
 
 2/2 
 
 
 1/9 
 
 2/2 
 
 
 
 l/8i— 1/10 
 
 21- 
 
 _ 
 
 47 
 
 
 — 
 
 + 150% 
 + 160% 
 
 + 179% 
 + 228% 
 
 +26% 
 — 2%— 6% 
 
 + 143% 
 
 + 195% 
 + 180%— 133% 
 + 229%— 180% 
 + 225%— 206% 
 + 243%— 140% 
 
 —S%—13% 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 12 
 18 
 
 14 
 
 15 
 16 
 17 
 
 18 
 19 
 
 20 
 
 21 
 22 
 
 23 
 24 
 25 
 26 
 27 
 
 28 
 29 
 30 
 31 
 32 
 33 
 34 
 35 
 36 
 37 
 38 
 
 S9 
 
 40 
 
 41 
 42 
 43 
 
 • Trade union rate per hour.
 
 60 
 
 Rates of Wages in Various 
 
 
 
 1914 (Dec.). 
 
 1915 (Dec). 
 
 1 
 
 1916 Dec). 
 
 POTTERY TRADES (Chief manufacturing' 
 
 
 
 
 centres in Great Britain) — 
 
 
 
 
 
 Ail workpeople 
 
 Men — Sauoer-mnkers . . 
 
 
 .. 1 
 .. 2 
 
 33791 
 
 + 7J% 
 
 + 161% 
 
 Sagger-makers . . 
 
 
 .. 3 
 
 82/11 
 
 
 
 
 Placers (glose) . . 
 
 
 .. 4 
 
 36/81 
 
 
 
 
 Labourers 
 
 
 . . 5 
 
 18/ 30 /-I 
 
 
 
 
 Women — Saucer-makers . . 
 
 
 .. 6 
 
 16/111 
 
 
 
 
 Electrical fittings 
 
 
 .. 7 
 
 10/ 12/61 
 
 
 
 
 
 Warehousewomen 
 
 
 .. 8 
 
 9 /-I 
 
 
 
 
 Hoars of Work per week . . 
 
 
 .. 9 
 
 sii 
 
 — 
 
 — 
 
 CHEMICAL TRADES. 
 
 
 
 
 
 Soap and Candle IVIanufacture (Gt. Britai 
 Men — Great Industrial centres 
 
 n) 
 
 
 
 
 . . 10 
 
 
 
 
 
 
 
 Other centres 
 
 . 11 
 
 
 
 
 
 
 Women — Great industrial centres 
 
 . 12 
 
 
 
 
 
 Other centres . . 
 
 . 13 
 
 
 
 
 
 Hoars of Work per week . . 
 
 . 14 
 
 — 
 
 — 
 
 — 
 
 FOOD TRADES. 
 
 
 
 
 
 Bread-Baking. 
 
 
 
 
 
 London — Forehands 
 
 . 15 
 
 38/ 42 /-s 
 
 41/ 45/- 
 
 42/ 46/- 
 
 Single and second hand 
 
 J 16 
 
 32/ 36/- 
 
 36/ 39/- 
 
 36/ 40/- 
 
 Tablehands 
 
 . 17 
 
 30/- 
 
 33/- 
 
 34/- 
 
 Manchester — Forehands 
 
 . 18 
 
 38/- 
 
 
 
 Single and second hand 
 
 s 19 
 
 35/- 
 
 
 
 
 
 Ta?)lehand3 
 
 . 20 
 
 33/- 
 
 
 
 
 Birmingham — Forehands 
 
 . 21 
 
 34/- 
 
 
 
 
 
 Single and second hand 
 
 8 22 
 
 30/- 
 
 
 
 
 
 Tablehands 
 
 . 23 
 
 26/ 28/- 
 
 
 
 
 
 Glasgow — Adult male workers 
 
 . 24 
 
 36/- 
 
 
 
 
 
 Hours of Work per week 
 
 • 25 
 
 48—54 
 
 — 
 
 — 
 
 Sugar Confectionery and Fruit Preservinc 
 
 1. 
 
 
 
 
 Men 
 
 . 26 
 
 — 
 
 26 /-6 
 
 28 /2« 
 
 Women 
 
 . 27 
 
 11/-, 12 /-s 
 
 13 /-8 
 
 14 /1« 
 
 Cocoa and Chocolate-making. 
 
 
 
 
 
 Men 
 
 . 28 
 
 — 
 
 26/-« 
 
 28 /2« 
 
 Women 
 
 . 29 
 
 11/-, 12 /-6 
 
 13/-« 
 
 14 /1« 
 
 Hours of Work per week 
 
 . 30 
 
 52 
 
 
 
 TOBACCO TRADES— 
 
 
 
 
 
 Cigar-makers — Men — London 
 
 . 31 
 
 30/ 45 /-8 
 
 
 
 
 
 Provinces 
 
 
 . 32 
 
 
 
 
 
 
 
 Women — London 
 
 
 . 33 
 
 18/ 35 /-8 
 
 
 
 
 
 Provinces 
 
 
 . 34 
 
 
 
 
 
 General workers — Men 
 
 
 . 35 
 
 25/-9 
 
 
 
 
 
 Women 
 
 
 . 36 
 
 10/ 14/-9 
 
 
 
 
 
 Hours of Work per week . . 
 
 . 37 
 
 45—59 
 
 — 
 
 — 
 
 DISTRIBUTIVE TRADES. 
 
 
 
 
 
 Co-operative Societies. 
 
 London division — Men — Managers. . 
 
 
 
 
 
 . 38 
 
 30 /-3 
 
 35/- 
 
 38/- 
 
 Shop assistants (21-23 yrs. 
 
 39 
 
 24/ 30 /-3 
 
 30/ 35/- 
 
 31/ 38/- 
 
 Women — Manageresses 
 
 . 40 
 
 21/- 
 
 26/- 
 
 28/6 
 
 Shop assistants (21-23 >ts. 
 
 41 
 
 17/- 
 
 20/- 
 
 26/- 
 
 North-Westcm division — Men — Managers 
 
 42 
 
 30/- 
 
 
 
 Shop assistants 
 
 . 43 
 
 24/ 30/- 
 
 
 
 
 
 Women — Manageresses 
 
 . 44 
 
 21/- 
 
 
 
 
 
 Shop assistants 
 
 . 45 
 
 17/- 
 
 — 
 
 — 
 
 1 Estimated weekly earnings in the North Staffordshire district. 
 * Revised basic rates. 
 3 Trade union minimum time-rates. 
 ' Minimum time-rates. 
 '•> Trade union standard time-rates. 
 
 6 Trade Board minimum time-rates. The minimum'piece-work basis time-rates fixed 
 by the Board amount to 10/- per week extra for men, and 6/- per week extra for women.
 
 Industries 
 
 , 1914— 1921— continued. 
 
 
 
 61 
 
 
 
 
 
 
 Maximum 
 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Dec.X 
 
 1920 (Dec). 
 
 1921 (June). 
 
 advance on 
 pre-war rates. 
 
 
 + 29i% 
 
 + 00% 
 
 + 80% 
 
 + 108i% 
 
 + 108J% 
 
 + 108*% 
 
 1 
 
 
 
 
 
 (6/8perday)« 
 
 
 
 
 
 — 
 
 
 — 
 
 — 
 
 (6/8 per day) 
 
 — 
 
 — 
 
 — 
 
 4 
 
 — 
 
 — 
 
 — 
 
 60 /-3 
 
 60/- 
 
 — 
 
 5 
 6 
 
 
 
 
 
 27/6 
 
 33/ 37/63 
 
 33/ 37/6 
 
 
 
 7 
 
 — 
 
 — 
 
 26/4 
 
 33 /4< 
 
 33/4 
 
 — 
 
 8 
 
 
 
 47 
 
 
 
 —9% 
 
 9 
 
 
 
 63/-« 
 
 75/- 
 
 69/- 
 
 
 10 
 
 — 
 
 — 
 
 61/- 
 
 73/- 
 
 67/- 
 
 — 
 
 11 
 
 
 
 
 
 36/- 
 
 43/6 
 
 39/6 
 
 — 
 
 12 
 
 — 
 
 — 
 
 32/6 
 
 40/- 
 
 36/- 
 
 — 
 
 IS 
 
 
 
 
 48 
 
 
 
 I* 
 
 49/ 53/- 
 
 68/ 72/- 
 
 73/ 77/- 
 
 88/ 92/- 
 
 78/- 
 
 + 132%— 119% 
 
 l.S 
 
 43/ 47/- 
 
 62/ 66/- 
 
 67/ 71/- 
 
 82/ 86/- 
 
 72/ 74/- 
 
 + 156%— 139% 
 
 16 
 
 41/- 
 
 60/- 
 
 65/- 
 
 80/- 
 
 70/- 
 
 + 167% 
 
 17 
 
 
 — 
 
 70/- 
 
 91/- 
 
 91/- 
 
 + 139% 
 
 18 
 
 — 
 
 — 
 
 67/- 
 
 88^- 
 
 88/- 
 
 + 151% 
 
 19 
 
 — 
 
 — 
 
 65/- 
 
 86/- 
 
 86/- 
 
 + 161% 
 
 20 
 
 — 
 
 — 
 
 70/ 74/- 
 
 81/ 84/- 
 
 81/ 84/- 
 
 + 138%— 147% 
 
 12 
 
 — 
 
 — 
 
 68/ 71/- 
 
 78/ 81/- 
 
 78/ 81/- 
 
 + 160%— 170% 
 
 22 
 
 — 
 
 — 
 
 65/- 
 
 75/- 
 
 76/- 
 
 + 188%— 107% 
 
 23 
 
 — 
 
 — 
 
 90/- 
 
 97/- 
 
 90/- 
 
 + 171% 
 
 24 
 
 — 
 
 — 
 
 44—48 
 
 
 — 
 
 —8—11% 
 
 25 
 
 34 /8« 
 
 88/-« 
 
 44/-,8 52/-' 
 
 58/-,«59/6' 
 
 58/-«59/6» 
 
 + 123%— 129% 
 
 26 
 
 19 /6« 
 
 21/8* 
 
 26/-«29/-'' 
 
 34/-,«35/-7 
 
 34/-,«36/-7 
 
 + 209%— 192% 
 
 27 
 
 34 /8« 
 
 38/-« 
 
 44/-,«62/6' 
 
 58 /-,« 72/67 
 
 58 /-,« 67/67 
 
 
 
 28 
 
 19 /6» 
 
 21/8* 
 
 26/-«36/-' 
 
 34/-«42/-' 
 
 34/-,6 39/-' 
 
 +209%— 183% 
 
 29 
 
 ~ 
 
 48 
 
 47 
 
 ~ 
 
 ~ 
 
 —9% 
 
 30 
 
 
 + 50% 
 
 + 83i% 
 
 + 98i% 
 
 + 110% 
 
 + 127J% 
 
 + 981% 
 
 + 110% 
 
 + 127t% 
 
 + 98*% 
 + 110% 
 
 81 
 
 — 
 
 + 60% 
 
 + 95% 
 + 112*% 
 
 32 
 
 — 
 
 + 60—75% 
 
 + 127*% 
 
 3S 
 
 — 
 
 + 60% 
 
 + 107i% 
 
 + 122i— 130% 
 
 + 122*— 130% 
 
 + 122*%— 130% 
 
 34 
 
 — 
 
 53 /-lo 
 
 55 /-lo 
 
 61 /610 
 
 61 /610 
 
 + 146% 
 
 35 
 
 — 
 
 24/ 27/410 
 
 35 /JO 
 
 38/610 
 
 38/610 
 
 + 285%— 168% 
 
 36 
 
 
 
 48 
 
 
 
 -0%—4% 
 
 37 
 
 42/- 
 
 52/- 
 
 65/- 
 
 100/- 
 
 100/- 
 
 
 38 
 
 85/ 42/- 
 
 46/ 52/- 
 
 60/ 65/- 
 
 65/ 70/- 
 
 65/ 70/- 
 
 + 171°i— 133% 
 
 39 
 
 30/- 
 
 38/- 
 
 50/- 
 
 100/- 
 
 100/- 
 
 + 376% 
 
 40 
 
 28/- 
 
 34/- 
 
 45/ 50/- 
 
 52/6—55/- 
 
 52/6—55/- 
 
 + 209%— 224% 
 
 41 
 
 — 
 
 52/6 
 
 75/- 
 
 87/- 
 
 87/- 
 
 + 190% 
 
 42 
 
 — 
 
 46/6 —52/6 
 
 60/ 67/6 
 
 72/ 80/- 
 
 72/ 80/- 
 
 + 200%— 167% 
 
 43 
 
 — 
 
 43/6 
 
 50/- 
 
 58/- 
 
 68/- 
 
 + 176% 
 
 44 
 
 
 39/6 
 (Yorks) 
 
 44/- 
 
 50/- 
 
 50/- 
 
 + 194% 
 
 45 
 
 7 Trade union standard time-rates, pieceworkers to rectivc correeponding additiona 
 to those under the Trade Boards .\ct. 
 
 • Estimated piece-work earnings. 
 » Time-rates paid by certain London Arms. 
 ^* Trade Board minimum time-rates.
 
 62 
 
 Rates of Wages in Various 
 
 1914 (Dec). 
 
 1915 (Dec). 
 
 1916 (Dec). 
 
 DISTRIBUTIVE TRADES— continued. 
 Co-operative Societies — continued. 
 
 Western division — Men — Managers 
 
 Shop assistants 
 Women — Manageresses 
 
 Shop assistants 
 
 Hours of work per Week . . 
 
 Commercial Firms. 
 
 London (some " union " firms) — 
 Men — Managers 
 
 Shop assistants (21-23 yrs.). 
 Women — Manageresses 
 
 Shop assistants (21-26 yrs.). 
 Manchester (grocery firms) — 
 Men — Managers 
 
 Shop assistants 
 Women — Manageresses 
 Shop assistants 
 Plymouth (certain grocery firms) — 
 Men — Jlanagers 
 
 Shop assistants 
 Women — Manageresses 
 Shop assistants 
 Hours of Work per week 
 
 Milk Distributive Trade. 
 
 England and Wales — 
 London — 
 
 Men — Clerks (over 21 yrs.) 
 
 Shop assistants 
 Women — Clerks 
 
 Shop assistants 
 Provincial Towns 
 
 Men — 
 
 Women — 
 
 Rural districts — 
 Men — 
 
 Clerks 
 
 Shop assistants 
 
 Clerks 
 
 Shop assistants 
 
 Clerks 
 
 Shop assistants 
 Women — Clerks 
 
 Shop assistants 
 Hours of Work per week . . 
 
 CIVIL SERVICE. 
 
 All Civil Servants (Permanent staff) 
 Men — Basis salaries 15 /- to 30 /- 
 30 /- to 40 /- 
 40 /- to 60 1- 
 £156/10 to £226 p.a. 
 Women— „ 15/- to 30/- 
 30/- to 40/- 
 40 /- to 60 /- 
 £156/10 to £226 p.a. 
 Hours of Work 
 
 Post Office Workers. 
 
 Men sorters, telegraphists, clerks 
 
 London (Inner). 
 Provinces — Class I. 
 
 „ III. 
 Postmen — 
 
 London (Inner) 
 Provinces — Class I. 
 ,. III. 
 
 (18-35 yrs.). 
 (18-35 yrs.). 
 (18-32 yra.). 
 
 (18-32 yrs.). 
 (18-31 yrs.). 
 (18-31 yrs.). 
 
 32 
 . 33 
 34 
 35 
 36 
 37 
 38 
 39 
 40 
 
 30/- 
 
 24/ 28/- 
 
 21/- 
 
 17/- 
 
 48—62 
 
 30/- 
 
 24/- 
 
 20/ 65/- 
 
 16/ 58/- 
 
 15/ 46/- 
 
 22/ 43/- 
 
 18/ 37/- 
 
 16/ 31/- 
 
 23/ 65/- 
 
 45/- 
 
 -1-4/- 
 -1-4/- 
 -1-3^- 
 
 -1-2/- 
 + 21- 
 + 116 
 
 24/- 
 
 55/- 
 
 46/- 
 
 1 Trade Board minimum time-rates. 
 
 * The figures include the war bonus of 130-40%, plus 5/26 in November, 1920, and 
 plus 7/26 in March, 1921. (See pages 82-83).
 
 IiTOUSTEiES, 1914 — 1921 — continued. 
 
 63 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Deo.). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 Maximum 
 
 advance on 
 
 pre-war rates. 
 
 44—48 
 
 80/- 
 
 45/ 66/- 
 
 80/- 
 36/ 53/- 
 
 + 14/- 
 
 + 23/- 
 
 + 14/- 
 
 + 23/- 
 
 + 13/- 
 
 + 23/- 
 
 +£34 
 
 +£60 
 
 + 9/- 
 
 + 15/- 
 
 + 9/- 
 
 + 15/- 
 
 +8/6 
 
 + 15/- 
 
 +£22/6 
 
 +£40 
 
 78/1 
 
 66/- 
 
 4S 
 
 65/- 
 60/ 65/- 
 
 65/- 
 40/ 42/6 
 
 90/- 
 66/ 80/- 
 
 90/- 
 52/ 64/- 
 
 80/- 
 60/ 72/6 
 
 37/ 49/- 
 
 72/- 
 
 36/ 55/- 
 
 72/- 
 28/6—43/6 
 
 70 /-i 
 
 70/- 
 
 65/- 
 
 65/- 
 
 48/- 
 
 48/- 
 
 42/- 
 
 42/- 
 
 67/- 
 
 67/- 
 
 62/- 
 
 62/- 
 
 45/- 
 
 45/- 
 
 40/- 
 
 40/- 
 
 60/- 
 
 60/- 
 
 65/- 
 
 55/- 
 
 38/- 
 
 38/- 
 
 33/- 
 
 33/- 
 
 48 
 
 — 
 
 65/- 
 60/ 65/- 
 
 65/- 
 40/ 42/6 
 
 90/- 
 65/ 80/- 
 
 90/- 
 62/ 64/- 
 
 80/- 
 60/ 72/6 
 
 37/ 49/- 
 
 72/- 
 
 36/ 65/- 
 
 72/- 
 28/6—43/6 
 
 + 117% 1 
 
 + 150%— 132% 2 
 
 + 161% 3 
 
 + 135%— 150% ; 4 
 
 —S%—9% 5 
 
 + 117%— 167% 
 
 + 150%— 202% 
 
 6 
 7 
 8 
 9 
 
 10 
 11 
 12 
 13 
 
 14 
 15 
 16 
 17 
 18 
 
 19 
 20 
 21 
 22 
 
 23 
 
 24 
 
 25 
 26 
 
 27 
 28 
 29 
 30 
 31 
 
 + 24/- + 30% 38/3— 76/6» I 39/9—79/6 +165% ! 32 
 
 + 24/-+30% 76/6—97/9 79/6—101/6 +166%— 164% 33 
 
 + 24/ 30%' 97/9—132/1 ! 101/6—136/9 i +154%— 128% 34 
 
 + £60 + 30% £344/12-£459/3£356/10-£474/4 +128%— 110% ' 35 
 
 + 15/- + 30% , 38/3—76/6 i 39/9—79/6 I +165% , 36 
 
 + 16/- + 30% 76/6—97/9 79/6—101/6 +165%— 154% 37 
 
 + 15/-+30% I 97/9—132/1 101/ft— 136/9 I -f 154°o— 128% 38 
 
 +£40 + 30% |£344/12-£469/3'£356/10-£474/4! +128%— 110% ; 39 
 
 — 40 
 
 88/1 
 
 66/- 
 
 107/1 
 
 79/11 
 
 61/2— 145/-» 83/7—160/- i +128%— 131% 
 56/1—133/10 67/3—138/6 i -1-258%- 139% 
 61/ 113/3 '53/ 117/4 I -H253%— 155% 
 
 56/1—108/1 57/3—112/1 
 
 61/ 97 /9J I 63/ 101/6 
 
 46/lOi— 86/8 47/8— 90/1 
 
 + 160%— 161% 
 + 183' o— 174% 
 + 198%— 191% 
 
 * The flsrures include tlie war bonus, togetlier with special rate Increases of 3 /6 for men 
 and 2 '6 for women.
 
 64 
 
 Rates of Wages in Various 
 
 
 
 1914 (Dec). 
 
 1915 (Dec). 
 
 1916 (Deo.). 
 
 CIVIL SERVICE— continued. 
 
 
 
 
 
 Post OfRce Workers — continued. 
 
 
 
 
 
 Women— Sorters, telegraphists and clerks 
 
 
 
 
 
 London (Inner) (18-32 yrs.). . 
 
 1 
 
 18/ 40/- 
 
 41/6 
 
 42/- 
 
 Provinces— Class I. (18-30 yrs.). . 
 
 2 
 
 15/ 36/- 
 
 — 
 
 
 „ III. (18-28 yrs.).. 
 
 3 
 
 14/ 30/- 
 
 — 
 
 — 
 
 Telephonists — 
 
 
 
 
 
 London (Inner) (18-28 yrs.). . 
 
 4 
 
 16/ 28/- 
 
 29/6 
 
 30/- 
 
 Provinces — Class I. (18-27 yrs.). . 
 
 5 
 
 14/ 26/- 
 
 — 
 
 — 
 
 „ III. (18-25 yrs.).. 
 
 6 
 
 13/6—22/- 
 
 — 
 
 — 
 
 Hours of Work 
 
 7 
 
 — 
 
 — 
 
 — 
 
 PUBLIC UTILITY SERVICES. 
 
 
 
 
 
 Municipal Service — London 
 
 
 
 
 
 Manual workers (non-trading) : 
 
 
 
 
 
 Grade A., messengers, attendants, 
 
 
 
 
 
 lamplighters, street sweepers. 
 
 
 
 
 
 etc. 
 
 8 
 
 30/-» 
 
 — 
 
 — 
 
 Grade B., dustmen, carmen, drain 
 
 
 
 
 
 flushers, grave-diggers, etc. 
 
 9 
 
 32/- 
 
 
 
 — 
 
 Grade C, tar sprayers, asphalters, gar- 
 
 
 
 
 
 deners, scavenging gangers, etc. 
 
 10 
 
 34/- 
 
 — 
 
 — 
 
 Grade D., clinker foremen, sewermen. 
 
 
 
 
 
 time-keepers, etc. 
 
 11 
 
 36/- 
 
 — 
 
 — 
 
 Grade E., sewer gangers, motor me- 
 
 
 
 
 
 chanics, etc. 
 
 12 
 
 38/- 
 
 
 
 
 
 Grade F. , wharf-keepers, horse-keepers, 
 
 
 
 
 
 foremen sewermen, etc. . . 
 
 13 
 
 40/- 
 
 — 
 
 — 
 
 Hours of Work per week 
 
 14 
 
 48 
 
 — 
 
 — 
 
 Electricity Supply Undertakings — London 
 
 
 
 
 
 Switchboard attendant 
 
 15 
 
 
 
 
 
 +v/- 
 
 Assistant switchboard attendant 
 
 16 
 
 — 
 
 — 
 
 +7/- 
 
 Journeyman fitter 
 
 17 
 
 — 
 
 — 
 
 + 7/- 
 
 Fitter's mate 
 
 18 
 
 
 
 
 
 + 7/- 
 
 Labourer.. 
 
 19 
 
 — 
 
 — 
 
 -t-7/- 
 
 Hours of Work per week .. 
 
 20 
 
 — 
 
 — 
 
 
 Qas Works — London — 
 
 
 
 
 
 Stoker (ordinary) 
 
 21 
 
 39 /-s 
 
 — 
 
 — 
 
 Labourer.. .. 
 
 22 
 
 24/- 
 
 — 
 
 — 
 
 Hours of Work per week 
 
 23 
 
 4S 
 
 — 
 
 — 
 
 1 Including special increase of 3 /-. 
 
 * Trade union minimum time-rates in operation in most boroughs. 
 
 ' The scale relates to the administrative County of London, exclusive of the boroughs 
 of Kensington and Westminster.
 
 Industries, 1914 — 1921 — continued. 
 
 65 
 
 1917 (Dec). 
 
 1918 (Dec). 
 
 1919 (Dec). 
 
 1920 (Dec). 
 
 1921 (June). 
 
 Maximlm 
 
 advance on 
 
 pre-war rates. 
 
 
 49/- 
 
 55/- 
 
 67/- 
 
 61/2—106/41 
 56/1—97/91 
 51/ 86/8 
 
 63/7—110/4 
 57/3—101/6 
 53/ 90/1 
 
 1 
 
 + 253%— 176% 
 + 282%— 182% 
 + 278%— 200% 
 
 1 
 
 2 
 3 
 
 37/- 
 
 46/-' 
 
 54/41 
 
 45/101—90/111 
 40/91—84/11 
 35/8—73/11 
 
 47/8—94/4 
 42/4—87/5 
 37/1—76/10 
 
 + 198%— 237% 
 + 202%— 236% 
 + 175%— 249% 
 
 4 
 
 5 
 6 
 
 7 
 
 
 
 
 84/9,85/-" 
 
 79/6,79/9 
 
 + 182%— 183% 
 
 8 
 
 — 
 
 — 
 
 — 
 
 88/5 
 
 83/2 
 
 + 177% 
 
 9 
 
 — 
 
 — 
 
 + 25/ 35/- 
 
 92/2 
 
 86/8 
 
 + 171% 
 
 10 
 
 — 
 
 — 
 
 — 
 
 95/6,95/10 
 
 89/9,90/1 
 
 + 165%— 166% 
 
 11 
 
 — 
 
 — 
 
 — 
 
 99/6.99/7 
 
 93/6,93/7 
 
 + 162% 
 
 12 
 
 — 
 
 — 
 
 — 
 
 103/- 
 47 
 
 97/- 
 
 + 157% 
 —2% 
 
 13 
 14 
 
 20/- + 121% 
 +20/- + 121% 
 + 20/- + 121% 
 + 20/- + 12i% 
 +20/- + 121% 
 
 + 28/6 + 121% 
 + 28/6 + 121% 
 + 28/6 + 121% 
 + 28/6 + 121% 
 +28/6 + 121% 
 
 + 33/6 + 121% 
 + 33/6 + 121% 
 + 33/6 + 121% 
 + 33/6 + 121% 
 +33/6 + 121% 
 
 2/3t— 2/7J« 
 1/lOJ— 2/01 
 
 2/51 
 
 1/111 
 
 1/lOi 
 47 
 
 2/1—2/61 
 
 1/9— 1/lOf 
 
 2/lt 
 
 1/9J 
 1/91 
 
 — ' 
 
 16 
 10 
 17 
 18 
 19 
 20 
 
 
 
 
 
 
 
 88/3 
 
 73/4 
 
 47—48 
 
 
 
 + 126% 
 
 + 206% 
 
 —2%-0% 
 
 21 
 22 
 23 
 
 * Trade union rate per hour. 
 
 * Time-rates In general operation at the end of 1913.
 
 66 
 
 Table II.— PERCENTAGE ADVANCES FOR REPRESENTATIVE 
 
 Building Trades (London) — Bricklayer 
 
 Mines (South Wales) — Coal-getter (piece-work) 
 
 Metal Trades — Engineering (London) — Fitter . . 
 
 Siemens Steel (South Wales) 
 
 Textile Trades — Cotton (Northern counties) — All workpeople (piecework) 
 
 Wool (Yorks and Lanes.) — All male workpeople (piecework) 
 
 Hosiery (Leicester) — All male workpeople (piecework) 
 
 Dyeing, etc. (Lanes, and Cheshire) — Calico worker 
 
 Clothing Trades — Tailoring (London) — Cutter (wholesale) 
 
 Boot and Shoe (Leicester) — Clicker 
 
 Transport — Eailways (London) — Goods porter . . 
 
 Road (London) — Carter (2-horse) . . 
 
 Waterside (London) — Dock labourer 
 
 Merchant Shipping — Able seaman . . 
 
 Agriculture (England and Wales) — Agricultural labourer 
 
 Printing Trades (London) — Compositor 
 
 Furnishing Trades (London) — Cabinet-maker . . 
 
 Pottery Trades (North Staffs.) — All workpeople (piecework) 
 
 Food Trades — Bread-baking (London) — Single and second hands 
 
 Tobacco Trades — Cigar-making (London) — Cigar-maker (piecework) 
 
 Distribution — Co-operative Societies (London) — Shop assistant 
 
 Civil Service — Post Ofllce (London) — Postman 
 
 Public Utility Services — Municipal " non-trading " service (London) 
 Dustman 
 
 
 Pre-war 
 Rate of Wages. 
 
 1 
 
 Hid. per hour. 
 
 2 
 
 9/4 per shift. 
 
 3 
 
 40 /- per week. 
 
 4 
 
 40 /- per week. 
 
 5 
 
 — 
 
 6 
 
 — 
 
 7 
 
 — 
 
 . 8 
 
 28 /- per week. 
 
 . 9 
 
 lOd. per hour. 
 
 . 10 
 
 30 /- per week 
 
 . 11 
 
 23 /- per week.i 
 
 . 12 
 
 31 /- per week. 
 
 . 13 
 
 5 /3 per day. 
 
 . 14 
 
 £5/10 per month. 
 
 . 15 
 
 16 /10« per week. 
 
 . 16 
 
 39 /- per week. 
 
 . 17 
 
 Hid. per hour. 
 
 . 18 
 
 — 
 
 . 19 
 
 32 /- per week. 
 
 . 20 
 
 — 
 
 . 21 
 
 30 /- per week. 
 
 . 22 
 
 43 /- per week. 
 
 . 23 
 
 32 /- per week. 
 
 1 Mean rate. 
 
 * Taking into account the reduction of hours from 50 to 44 per week (see Note to 
 Table U., page 84).
 
 67 
 
 CLASSES OF WORKERS IN VARIOUS INDUSTRIES, 1914—1920. 
 
 Percentage advance at the end of each year. 
 
 
 1914. 
 
 1915. 
 
 1916. 1 1917. ! 1918. 
 
 1919. 
 
 1920. 
 
 
 
 
 9 
 
 33 66 104 
 
 113 
 
 126> 
 
 1 
 
 
 
 32 
 
 68 j 84 100 
 
 121 
 
 176 
 
 2 
 
 7 
 
 17 
 
 25 1 77 101 
 
 115 
 
 133 
 
 3 
 
 
 
 15 
 
 27 ' 67 i 85 
 
 1 j 
 
 130 
 
 180 
 
 4 
 
 
 
 
 
 5 1 35 110 
 
 1213 
 
 1828 
 
 5 
 
 
 
 7 
 
 25 : 48 i 84 
 
 135 
 
 181 
 
 6 
 
 
 
 8 
 
 19 31 ! 54 
 
 100 
 
 125 
 
 7 
 
 
 
 11 
 
 25 66 1 108 
 
 129 
 
 177 
 
 8 
 
 
 
 
 
 ' 25 50 
 
 50 
 
 112 
 
 9 
 
 
 
 7 
 
 10 33 83 
 
 87 
 
 93 
 
 10 
 
 
 
 21 
 
 43 91 143 
 
 165 
 
 215 
 
 11 
 
 
 
 10 
 
 15 48 , 97 
 
 110 
 
 139 
 
 12 
 
 
 
 10 
 
 19 57 ■ 84 
 
 119 
 
 205 
 
 13 
 
 
 
 321 
 
 55 , 100 164 
 
 164 
 
 164 
 
 " 
 
 — 
 
 — 
 
 — 40 1 89 
 
 126 
 
 177 
 
 15 
 
 
 
 8 
 
 15 38 j 87 
 
 118 
 
 156 
 
 16 
 
 0.1 
 
 
 
 13 1 30 i 56 
 
 1025 
 
 134S 
 
 17 
 
 
 
 7 
 
 16 1 29 60 
 
 80 
 
 108 
 
 18 
 
 
 
 9 
 
 12 ; 34 94 
 
 109 
 
 156 
 
 19 
 
 — 
 
 — 
 
 — — 50 
 
 83 
 
 98 
 
 20 
 
 
 
 16 
 
 26 40 58 
 
 116 
 
 133 
 
 21 
 
 
 
 S 
 
 7 30 56 
 
 1 : 
 
 89 
 
 151 
 
 22 
 
 — 
 
 
 ~ ~ 1 ~ 
 
 941 
 
 176 
 
 23 
 
 * Taking into account the reduction of hours from 55i to 48 per week. 
 
 ♦ Average weekly wage (Labour Gazette figures). 
 
 * Taking into account the reduction of hours from 50 to 47 per week..
 
 NOTE TO APPENDIX I. 
 TABLE I. 
 
 The following text is intended to be read in conjunction 
 with the figures given in the table. 
 
 Building Industry. 
 
 Wages in the building trades were negotiated before the war 
 between the local builders' associations and the buUding opera- 
 tives' trade unions, and hourly rates had been fixed in 1914 for the 
 various classes of workmen, including labourers, in a great number 
 of towns. It was subsequently agreed to set up eight joint Area 
 Councils covering the greater part of England and Wales. The 
 towns coming under the agreement are now grouped in each area 
 into four grades, and hourly rates are fixed for each grade. 
 London remains outside the settlement, so does Scotland and so 
 do some twenty-four minor towns in England and Wales. The 
 general effect of war advances has been to level up wages, and to 
 estabhsh so far as possible a national standard. There is roughly 
 a difference of 4d. an hour between the rates in northern, western, 
 and Midland areas, and corresponding rates in eastern and 
 southern areas, and about the same difference between the rates 
 in Grade A towns and corresponding rates in Grade C and D 
 towns. The lowest rates paid in any grade at the end of 1920 
 were Is. lOd. for bricklayers and Is. 7d. for labourers. But, in 
 nearly every case, the advance on pre-war rates shows not merely a 
 higher percentage but a greater money amount in provincial 
 towns than in London, in small towns than in large towns, and 
 for labourers than for tradesmen. Hours of work were reduced 
 from between 46| and 56| per week (summer time) to 44 at the 
 end of 1920, and there is a consequent loss of earnings in a normal 
 week which may be estimated at from about 5 per cent, to about 
 22 per cent, for different classes of workmen in various districts. 
 In London, where there was a summertime week of 50 hours in 
 1914, the advance of 143 per cent, on hourly rates may be said 
 to represent an increase of 126 per cent, in the weekly wage. An 
 all-round reduction of 2d. per hour took place in May, 1921, and 
 a further reduction of Id. per hour for labourers operated in the 
 following July. 
 
 Mines. 
 
 Before the war wages in the coal industry were adjusted by 
 means of district boards set up under the Conciliation Agreement 
 of 1910, and under the Coal Mines Minimum Wage Act, 1912. 
 This Act provides that a minimum wage shall be fixed for each 
 grade in each district, which shall be legally binding on employers, 
 but not prejudice the operation of higher rates. This statutory 
 minimum for each day can be claimed by any worker who finds 
 his piecework earnings faUing below that sum. Wages varied 
 under pre-war conditions in most districts with the selUng price of 
 coal, and some districts would at one time have been entitled 
 
 68
 
 NOTE TO APPENDIX I. 69 
 
 toa very large advance of wages based on the high price of exported 
 coal, but the system ceased to work Mith the control of prices in 
 1915. The whole of the coal mines in Great Britain were brought 
 under Government control in February, 1917, and war advances 
 were subsequently negotiated on a national basis between the 
 Coal Controller and the Miners' Federation. The various di.strict 
 percentages and the national war wage of 3s. received up to 
 November, 1918, refer mainly to cost of living, but the " Sankey " 
 advance of 2s. (January, 1919) was given explicitly on the ground 
 that the miners' pre-war wage was inadequate, and for the 
 definite purpose of improving his standard of li\dng. In March, 
 1920, there was a further advance of 20 per cent on gross earnings 
 (exclusive of the 3s. war wage and the " Sankey '" 2s.), with a mini- 
 mum increase of 2s., while the settlement of November, 1920, 
 provided for the automatic adjustment of future increases on the 
 following lines : — 
 
 " If the weekly average of the proceeds of export coal 
 during the test period are maintained at the weekly average 
 of the proceeds of export coal during the September quarter, 
 the advance shall be Is. a shift to persons of eighteen years 
 of age and over, 6d. to those of sixteen and seventeen, and 
 4^. to those under sixteen. If (after the deduction of the 
 cost of extra output) this weekly average exceeds the 
 September figure, an additional 6d., 3d., and 2Jd. respec- 
 tively will be paid for every complete £288,000 of the excess." 
 The scale resulted in an increase of 3s. 6d. per shift in January, 
 1921 (of which 2s. had been received in anticipation in the 
 previous November), and a decrease of 3s. 6d. between January 
 and the end of Government control in March. The coalo\\Tiers 
 now proposed to return to district settlements and announced 
 reductions of wages amounting to between 40 and 50 per cent. 
 in the South Wales and other districts, while the South Yorkshire 
 miners were offered a slight advance. The terms were rejected 
 by the miners in every district with the result of the coal-owners' 
 lock-out. The lock-out lasted for three months and the men did 
 not return to work until July, 1921. The new agreement com- 
 prised a temporary scheme and a more permanent settlement. 
 The temporary scheme provides for a scale of reductions not 
 exceeding 2s. per shift in July, 2s. 6d. in August, and 3s. in 
 September, a sum of £10,000,000* being contributed by the 
 Government in order to assist the poorer districts to pay their 
 share. The permanent settlement takes effect from October 
 1921 to December 1922. Under the terras certain district basis 
 or standard rates must be paid (including certain district per- 
 centages), employers to receive, in addition to all costs of pro- 
 duction, a standard profit equivalent to 17 per cent, of the cost 
 of standard wages, while the surplus proceeds of the industry to 
 be divided among owners and workers in the proportion of 
 * Of this sum only £7,000,000 was eventually paid.
 
 70 WAGES, PRICES AND PROFITS. 
 
 1 7 per cent, and 83 per cent, respectively. In no district, however, 
 must wages be paid at lower rates than standard wages plus 
 20 per cent. 
 
 The Coal Mines (Regulation) Act, 190S, limits the hours of 
 work underground to eight per day, but this does not include the 
 delay in descending and ascending the pits. Under the Act of 
 
 1918, the eight hours were reduced to seven hours as from July 
 
 1919, and subject to economic considerations may be reduced by a 
 vote of the House of Commons to six after July, 1921. In the 
 case of piece-workers the reduction of hours was compensated 
 by corresponding rate increases. 
 
 Metal Trades. 
 
 General Engineering and Shipbuilding Trades. — Wages in the 
 general engineering trades are negotiated between the Engineering 
 and National Employers' Federation, and certain smaller societies 
 of employers, on the one hand, and, on the other, the Amal- 
 gamated Engineering Union and the Engineering and Ship- 
 building Trades Federation, representing for the most part skilled 
 workers, and the National Federation of General Workers, 
 representing the less skilled grades. Wages for marine repair- 
 ing work, as distinguished from shipbuilding work, are 
 adjusted with the Dry Dock Proprietors and Ship Repairers 
 Association, and rates in this case are generally above the normal. 
 There are other agreements for the shipbuilding trade, the workers 
 being represented by the United Society of Boilermakers and 
 Shipbuilders, but both groups came under the same national 
 awards during the war. Already in 1914, standard minimum 
 time-rates had been estabUshed in most important towns for 
 fitters, turners, smiths, pattern-makers, millwrights, brass 
 finishers, and for certain types of machinists, and regulation was 
 extended during the war. Not only were rates fixed in hitherto 
 unorganised districts, but one standard covers at present such 
 important centres as the Tyne, Barrow, Manchester, Liverpool, 
 Birmingham, Wolverhampton, Bristol, and numerous other large 
 towns. Rates are higher than the average in London, in 
 Sheffield and in South Wales, and a comparatively high standard 
 obtains in the Royal Dockyards (£4 10s. 6d., December, 1920), 
 but rates vary in small towns, several shilUngs below the figures 
 given. At the end of 1920, the fitter's rate was £4 Is. 6d. at Hayle, 
 in Cornwall, and only £3 15s. 3d. at Chard, in Somerset. There 
 were no estabhshed rates for labourers before the war, and the 
 figures given represent only various rates in operation. Nor are 
 semi-skilled and labourers' rates established now in all the 
 districts. 
 
 War advances in the engineering and shipbuilding trades took 
 effect under a number of local agreements and awards until March, 
 1917, when previous increases were consolidated in a general 
 minimum advance under a national award of the Committee on
 
 NOTE TO APPENDIX T. 71 
 
 Production. The award related at first to the engineering and 
 foundry trades, but was immediately extended to ship-building, 
 and covered all classes of male workers including labourers. War 
 advances were subsequently granted on a national basis, and 
 amounted to £1 I9s. 6d. when the maximum increase was 
 reached in June, 1920. This sum includes 13s. increase on basic 
 rates, a war bonus of £1 6s. 6d. (which does not carry any addition 
 to piece-rates), and a bonus of 12| per cent, on gro.ss earnings. 
 The latter bonus was granted in the first instance so as to com- 
 pensate certain classes of skilled tradesmen whose earnings had 
 not increased proportionately to those of piece-workers, but it was 
 afterwards extended to all classes of time-workers, while piece- 
 workers received a bonus of 7i per cent, as an equivalent. Apart 
 from the national advances, there were various local adjustments, 
 and wages in backward districts were levelled up to some 
 extent. 
 
 The shipbuilding unions agreed in April, 1921, to accept a 
 reduction of wages amounting to 3s. per week in the following 
 May, and to 6s. in the following June, or 6s. 9d. taking into account 
 the fluctuation in the 12i per cent, bonus. Similarly, the engineer- 
 ing unions were obliged to accept two reduction of 3s. each to come 
 into operation on July 15th, and on August 15th respectively. 
 
 Women are represented by the National Union of General 
 Workers (which has now absorbed the National Federation of 
 Women Workers), the Workers' Union and other general labour 
 unions, which succeeded in 1913 in establishing a standard for the 
 Midlands district. Following the Munitions of War (Amendment) 
 Act, 1916, wages were fixed on a national basis by statutory orders 
 of the Minister of Munitions, supplemented by arbitration awards 
 and agreements with the National Engineering Employer's 
 Federation. Women's wages were subject to a first reduction 
 in May, 1921. 
 
 Iron and Steel Trades. — Wages in the iron and steel trades are 
 separately negotiated in each district and/or in each section of 
 the industry, between the several manufacturers' associations and 
 the Iron and Steel Trades Confederation and other trade unions 
 and vary with local conditions. The aggregate wages of the 
 majority of the workpeople in the industry are governed by 
 sliding scales based upon the selling price of the product, the scale 
 percentages representing additions to the basis rates fixed for the 
 different occupations. 
 
 During the war a large number of workpeople came under the 
 engineering and foundry trades awards, these being principally 
 workmen not governed by the sliding scales. In the ca-se, liow 
 ever, of men on the scales, and particularly semi-skilled workmen 
 and labourers, where the scales did not advance at a rate con- 
 sistent with the increase in the cost of living, the flat rate war 
 bonuses were applied under an arrangement whereby the work- 
 people concerned received whichever gave the higher percentage.
 
 72 WAGES. PRICES AND PROFITS. 
 
 At the same time a minimum base rate of 23s. per week was 
 fixed for labourers. 
 
 In the South Wales Siemens steel trade, there was adopted a 
 system of percentage and graduated war advances which related 
 partly to the cost of living and partly to the general prosperity 
 of the trade. The percentage varied with the rate of base earnings. 
 For example, under the agreement of January, 1920, workpeople 
 with a weekly base earnings of between £1 and £1 10s. received 
 190 per cent., but this figure was reduced by 1 per cent, for every 
 Is. of earnings between £1 10s. and £3, by ^ per cent, for every Is. 
 of earnings over £3, with a minimum advance of 125 per cent, on 
 base wages over £6 10s. Subsequently the graduated scale of 
 war advances was substituted by sliding scales relating to the 
 selling price of steel in bars. The scale commenced with a basis 
 selling price of £5 per ton and fluctuated at the rate of 1| per cent, 
 for each 2s. 6d. change in the ascertained selling price, and it was 
 agreed that the scale should become operative when the average 
 ascertained price of steel bars reached £23 per ton, when, at that 
 price, a uniform percentage on basis earnings under the scale 
 of 180 per cent, would have been operative over all the workpeople. 
 The selling price, however, did not reach that figure. In March, 
 1921, it was agreed to put the sliding scale into operation on the 
 average ascertained price of bars for the three months ending 
 December, 1920. This gave a uniform percentage of 156^ which 
 involved a reduction in the case of workpeople whose percentages 
 bonus were in excess of that figure, and an advance in respect of 
 those below. It was arranged, however, that an extra 10 per cent, 
 should be paid until the end of December, 19£i, to workpeople 
 with a basis rate of £1 10s. or less in the normal week. 
 
 Since the armistice the majority of the workpeople in the 
 iron and steel industry whose wages were previously governed by 
 war bonuses, have been transferred to the sliding scales by a 
 system of equation which has generally increased the basis rates of 
 the lowest paid workpeople. In other cases arrangements have 
 been made for an adjustment of the war bonuses on the sliding 
 scale principle and working in conjunction with the fluctuations 
 of one or the other of the existing scales. It is estimated that not 
 less than 97 per cent, of the workpeople employed in the heavier 
 branches of the iron and steel industry now have their wages other 
 than the basis rate governed by the shding scale principle, and 
 according to the selling price of the finished product. 
 
 In 1919, the twelve-hour shift was abolished and eight hours 
 adopted throughout the whole industry. While some progress 
 had been made in pre-war days and eight hours was the practice 
 in tinplate and steel sheet mills, in the blast-furnace trade chiefly 
 in the English districts, and in most of the steelworks in the South 
 Wales Siemens steel trade, progress was slow, but the iron and 
 Steel Trades Confederation, after its establishment, in 1916, made 
 the eight-hour day the first item in its post-war programme,
 
 NOTE TO APPENDIX I. 73 
 
 with the result stated. The eight-hour shift was applied under an 
 arrangement whereby in the case of all workmen with a basis 
 earnings of £2 10s. or under the same rates were maintained in the 
 shorter shift. Above a base earnings of £2 10s. a graduated scale 
 of adjustments was made at the rate of approximately | per cent, 
 for each additional Is. above £2 lOs. until a basis rate of £6 per 
 week was reached, when a 33| per cent, reduction of the rate to 
 cover the reduced hours was made. The addition to the aggregate 
 wages bill resulting from the adoption of the eight-hour shift is 
 estimated as being from 10 per cent, to 35 per cent. 
 
 Textile Trades. 
 
 Cotton Industry. — In the northern counties district, which 
 forms the centre of the cotton industry, wages are negotiated 
 between the several manufacturers' associations and the amalga- 
 mated associations representing the various bodies of cotton 
 operatives, and changes are subject to general agreements. The 
 war advances are for the most part based on the pre-war piece- 
 work Usts, the same percentage covers all sections of the industry, 
 and amounted to 210 per cent, in 1920. The men card and blow- 
 ing-room workers, who are employed on time-work, received an 
 additional increase of 10 per cent., and the cloth workers and ware- 
 housemen an additional increase of 5 per cent. Hours of work 
 were reduced in 1919 from 55^ to 48 per week. The war bonus 
 of 210 per cent, may be estimated to represent an actual wages 
 increase of about 180 per cent. 
 
 On June 4th, 1921, over 500,000 cotton operatives were locked 
 out for refusing to accept a reduction of 95 points on the war 
 bonus. An agreement was, however, reached on June 15th, which 
 resulted in an immediate all-round decrease of 60 points, with 
 the prospect of a further reduction of 10 points six months 
 later, making a total reduction of 4s. 5d. in the £1 on current 
 prices. 
 
 Wool and Worsted Industry. — Wages in the wool and worsted 
 trades are negotiated between the various bodies of employers 
 and workers, or fixed by agreements of the National Wool Industrial 
 Council. The figures given relate only to the Yorkshire and 
 Lancashire districts, and the standard is a lower one in the western 
 counties. War advances are subject to a sHding scale by which 
 the percentage varies directly with the Ministry of Labour index 
 figure of the cost of living, but the fuU amount is not received by 
 all classes of workers. Pieceworkers are only entitled to a reduced 
 scale ; while, in the case of time-workers, there is a maximum sum 
 to which the cost-of-living percentage may be applied. Apart 
 from the cost-of-Hving wage, basis rate increases amounting to 
 15 per cent, were received during 1919 and 1920, and minimum 
 rates established for various classes of workers. Hours of work
 
 74 WAGES, PRICES AND PROFITS. 
 
 were reduced from 55| to 48 hours per week in 1919, with com- 
 pensating adjustments for piece-workers. There is a separate 
 Industrial Council for Scotland. 
 
 The war bonus of 175 per cent, was reduced by 40 points under 
 the cost-of-living sUding scale between December, 1920, and 
 June, 1921, while a readjustment of the scale brought further 
 reductions in July amounting to about 14 per cent, on rates 
 current in the previous December. 
 
 Linen, Jute, Flax, and Hemp Trades. — These trades were 
 brought under the Trade Boards Acts during 1920, and three 
 separate boards were set up (exclusive of the Irish boards), one for 
 linen piece goods, a second for the jute trade and a third for the 
 flax and hemp trades. The standard is a higher one for some 
 groups of workers in organised districts such as Kirkcaldy, 
 Dunfermline and Dundee. The Kirkcaldy linen workers have a 
 sliding scale and were subject to decreases varying from 8s. lOd. to 
 10s. 8d. for different classes of workers between December, 1920 
 and June, 1921. 
 
 Hosiery Trades. — The wages of hosiery workers are regulated 
 by agreements between local groups of employers and local trade 
 union organisations or general labour unions. The figures given 
 for 1914 relate only to the Leicester district, and the standard is a 
 comparatively high one. The subsequent war advances apphed 
 to the main centres of the industry, but the percentage was con- 
 siderably below the sum given in some districts. The HucknaU 
 shawl and scarf makers had only received a bonus of 75 per cent, 
 in January, 1921, when the figure was raised to 100 per cent. 
 The maximum war advances for the Leicester and neighbouring 
 districts was 125 per cent, or Is. 3d. in the Is. in December, 1920, 
 but the Is. 3d. was reduced to Is. in June, 1921. 
 
 Carpet Industry. — There are no general rates of wages, but the 
 cost-of-living bonus is subject to an agreement of the Joint 
 Industrial Council for the Carpet Industry. The agreement 
 provides that increases on basic rates of 110 per cent, for time 
 workers and 120 per cent, for piece workers shall be paid when the 
 Ministry of Labour index figure is at 125 per cent., and for each 
 variation of ten points in the index figure the bonus shall rise or 
 fall by 10 per cent. The maximum increase was reached in 
 December, 1920, when the bonus amounted to 160 per cent, for 
 time workers, and 170 per cent, for piece workers. 
 
 Silk Trades. — Wages in the silk trades are negotiated between 
 the Leek Manufacturers and Dyers' Association and the Trade 
 Unions. Under the cost-of-hving sliding scale, which relates to 
 the Leek and Brighouse districts the index figure of 164 is taken 
 as a basis, and every variation of 10 points is followed by a rise or 
 fall of 10 per cent, in the bonus, or 2s. for men and Is. 6d. for 
 women. At Brighouse the wages of silk spinners are regulated 
 by the sMding scale of the National Wool Industrial Council.
 
 NOTE TO APPENDIX I. 75 
 
 Textile Dyeing, Bleaching and Finishing Trades. — Wages in 
 the Dyeing trades are negotiated between the employers' 
 associations and the trade unions separately for the various 
 districts, or sections of the industry. In the Lancashire, 
 Derbyshire and Scottish trade, the cost-of-hving wage takes the 
 form of money amounts uniform for certain groups of workers. 
 In respect of a cost-of-living index figure of 120, the increase for 
 adult males is £1 16s. 3d., and £1 Is. 7d. for females. Alterations 
 in the index numbers are followed by changes in these amounts 
 in the proportion of 10 per cent, in the cost-of-living wage for one 
 point in the index figure when the latter is at 100 or over, and 
 •8426 of 10 per cent, in the cost-of-living wage for one point 
 in the index figure when the latter is below 100. The 
 machine caUco printers, the engravers, the calico printers, the 
 Hebdenbridge dyers and the Bradford workpeople employed in 
 the grey room have separate but similar agreements. In the 
 Yorkshire cloth trade, the cost-of-living wage is the same as that 
 for the wool and worsted industry. Basic rates were revised 
 during 1919 in the Lancashire, Cheshire, Derbyshire and 
 Scottish districts, and minimum rates fixed for women. The 
 Scottish standard is a lower one than in the Yorkshire and 
 Lancashire districts. 
 
 Clothing Trades. 
 
 Tailoring Trade. — Rates of wages for journeymen tailors are 
 adjusted between the local employers' associations and the 
 tailors' and Garment Workers' Trade Union and the Amalgamated 
 Society of Tailors and Tailoresses. The " log " hour which forms 
 the basis of payment may be roughly estimated at thirty minutes 
 work for a journeyman of ordinary capacity. The ready-made 
 section of the industry was one of the first trades to be scheduled 
 under the Trade Boards Act, general minimum rates for men and 
 women were fixed in 1912, and the board now covers the whole 
 of the ready-made and wholesale bespoke trade and many branches 
 of the retail bespoke trade. Trade union standard rates for 
 special classes of workers had already been fixed in 1914, and the 
 Tailors' and Garment Workers' Trade Union continues to play an 
 important part in the operation of the Trade Boards Act. Trade 
 Union rates above the legal minimum are established in well- 
 organised districts, and these rates are afterwards consolidated 
 into national minima under the Act. The maximum advance on 
 pre-war rates was not reached until the end of May, 1921, but 
 owing to protracted negotiations the increases were long overdue. 
 Recent trade board decisions prescribe, not merely elaborate 
 scales of minimum time-rates and overtime rates, but a minimum 
 piece-work basis time-rate which guarantees an increased rate to 
 piece-workers. 
 
 Boot and Shoe Trade. — Wages are fixed on a national basis by 
 means of arbitration between the Federated Associations of
 
 76 WAGES, PRICES AND PROFITS. 
 
 Manufacturers and the National Union of Boot and Shoe 
 Operatives. A national scale of minimum wages was agreed in 
 1914, but local variations below the standard seem to have con- 
 tinued to some extent until the end of 1918. The figures given 
 represent guaranteed minimum time-rates. Men piece-workers 
 have the further advantage of elaborate piece-work statements, 
 and commonly earn a wage above the time-work standard. 
 
 Hat and Cap Trade. — There were no estabhshed national or 
 district rates until the cloth and straw hat trades were brought 
 under the Trade Boards Act in 1920. 
 
 Glove Trade. — Wages were practically unregulated before the 
 war, and the figures given for 1914 represent only a rough average 
 wage. A scale of general district ra,tes covering the Worcester, 
 Yeovil and other main centres of the industry was agreed in 1919 
 through the Interim Industrial Reconstruction Committee for the 
 Glove Industry, and these rates have been generally adopted in 
 the leather section of the industry. 
 
 Transport. 
 
 Railways — {Manual workers). — There was no national standard 
 for railwaymen before the war, and wages were negotiated 
 between the several companies and the trade unions. Standardi- 
 sation began with Government control. War advances were 
 granted on a national basis, and a minimum wage of £2 lis. per 
 week for adult railwaymen was agreed in the autumn of 1919. 
 A Central Wages Board was set up the same year, consisting of 
 five railway managers and five representatives of the trade unions, 
 namely, three from the National Union of Railwaymen and two 
 from the Associated Society of Locomotive Engineers and Firemen. 
 Wages are at present made up of certain standard rates and a 
 cost-of-living wage agreed upon in March, 1920, and operating as 
 from January 1st, 1920. The revised standard, or basic, rates 
 represent the average pre-war weekly rate in each grade plus 
 100 per cent., and the cost-of-living wage must not fall below this 
 point. The cost-of-living wage represents the average pre-war 
 rate plus £1 18s. a week, together with further increases ranging 
 from 2s. to 7s. 6d. (2s. to 8s. 6d. in the case of signalmen) granted 
 in June, 1920, the whole being subject to variations under a sliding 
 scale whereby there is an increase or reduction (subject to the 
 revised standard rate) of Is. per week for every rise or fall of a full 
 five points in the cost of living index number. The sliding scale 
 remains applicable so long as the cost of living index number 
 does not fall below 125, and is liable to revision once in three 
 months. The sliding scale bonus amounted to 8s. in January, 
 1921, but this sum fell to 4s. in the following April. Rates vary 
 again within each grade according to years of service. For ex- 
 ample, guards do not reach their maximum rate until the end of 
 the sixth year of service. Hours of work ranged from 48 to 72 
 per week in 1914, the average being about 60, but an eight-hour
 
 NOTE TO APPENDIX I. 77 
 
 day for all grades was established in February, 1919, without 
 reduction of wages. Railwaymen are entitled to a " guaranteed 
 week " of 48 hours, exclusive of all time on duty between mid- 
 night Saturday and midnight Sunday, time-and-a-half being 
 paid for night work and double time for Sunday work or overtime. 
 Further, they are entitled to a fortnight's annual holiday on full 
 
 pay. 
 
 A new agreement for the railways, including the setting up of 
 a permanent District Wages Board, was under discussion in 
 June, 1921. 
 
 Railways — {Clerks). — Salaries are fixed by agreement between 
 a Committee of Railway General Managers and the Railway 
 Clerks' Association. Before the war there were separate scales 
 for each company, the figures given for 1914 relating to the 
 London and North Western Railway ; but war advances were 
 granted on the same national scale as in the manual grades, and 
 salaries were standardised on a national basis in 1919. There 
 was an average advance of about 100 per cent., and to the new 
 salaries were added various " floating " bonuses. Under the 
 cost-of-hving sliding scale, so long as the cost-of-living index figure 
 does not fall below 125, there is an increase or decrease of £5 per 
 annum on the revised salaries for every full five points rise or fall 
 in the index figures. Further, some classes of clerks are entitled 
 to a residue of war bonus. This bonus is fixed at £90 for clerks 
 with salaries less than £150 per annum on the new salaries scale, 
 and £60 plus 20 per cent, of the new salaries for clerks with salaries 
 over £150 per annum, but the increase in salary received on the 
 introduction of the revised standardised scales must be deducted 
 in each case from this bonus. In estimating salaries, no account 
 in the table is taken of automatic increases of salary, nor of the 
 consequent reduction of the residue of war bonus, but these 
 adjustments do not materially affect the figures shown. Clerks 
 working at London depots and stations are entitled to an 
 additional allowance of £10 per annum. The figures given in the 
 table do not relate to women, who belong mainly to junior grades. 
 
 Road Transport. — The wages of carters and motor drivers are 
 fixed by agreements of the Joint Industrial (District) Councils 
 for the Road Transport Industry, or between local employers' and 
 trade union organisations. Some agreements cover as many as 
 eleven counties, the towns being classified into grades, and a rate 
 fixed for each grade. Similarly, the wages of tramway workers 
 are determined by agreements of the National Joint Industrial 
 Council for the Tramways Industry. Basic rates vary from one 
 town to another, but war wages were consolidated in a flat rate 
 bonus of £1 a week in February, 1920, the sum amounting to £2 in 
 June, 1920. Basic rate increases, ranging from Is. to 3s. a week 
 and in a few cases 4s., were received in addition in certain back- 
 ward districts.
 
 78 WAGES. PRICES AND PROFITS. 
 
 Waterside Transport. — Before the war the wages of dock and 
 wharf side workers were negotiated in each port between the 
 various port authorities or shipping companies and the dockers' 
 unions ; but, in 1920, the Dockers' Court of Enquiry was followed 
 by a national agreement between the National Council of Port 
 Labour Authorities and the National Transport Workers' 
 Federation, and a national minimum wage of 16s. a day (15s. in 
 small ports) was fixed for dock workers, which extended to lighter- 
 men, and barge workers. Special rates are agreed for certain 
 classes of dock and waterside labour, such as ship-workers, timber 
 haulers and coal-heavers. It was decided in July, 1921, that 
 an all-round reduction of 2s. per day should take place in the 
 following August, with the prospect of a further reduction of Is, 
 per day in January, 1922. 
 
 Merchant Shipping. — Wages are fixed by decisions of the 
 National Maritime Board, but there were uniform rates in 1914, 
 before the Board was established. Wages are paid on a monthly 
 basis, and food is provided in addition, the cost in respect of able 
 seamen being estimated at £2 per month in 1914, and £4 15s. per 
 month at the end of 1920. Where food is not provided, there are 
 proportionately higher scales of wages, which are paid by the 
 week. The advance of £3 per month (ordinary seamen, £1 lOs.) 
 granted in October, 1918, represents a" war risks bonus." There 
 are no established hours of work. 
 
 Agriculture. 
 
 Wages in agriculture were almost wholly unregulated before 
 the war, and rates fell to an indefinitely low level in rural districts. 
 The figures given for 1914 represent only the estimated average 
 wage of the district. Under the Corn Production Act, 1917, an 
 Agricultural Wages Board was set up for England and Wales, and a 
 separate committee for Scotland. The Act provided that minimum 
 time rates must be fixed so as to yield not less than £1 5s. per 
 week to able-bodied male labourers, taking into account the value 
 of any benefits or allowances which may be paid as a part of wages. 
 A general minimum rate was subsequently fixed for each county 
 area, and in some cases special rates for skilled workers. The 
 lowest rate in England and Wales covers as many as thirty- five 
 counties, while the difference between the highest rate and the 
 lowest rate is not more than 6s. Hours of work are fixed in the 
 same way, the normal week being rather longer in the summer 
 than in che winter or 50 instead of 48 hours, except in Cheshire, 
 where the normal week is 54 hours. Overtime rates range from 
 Is. 2d. to Is. 3|d. an hour on week days, and from Is. 5|d. tc 
 Is. 6|d. an hour on Sundays. Women's rates are fixed on a 
 separate basis and represent little more than two-thirds of the 
 men's wages. 
 
 In Scotland the standard is a comparatively low one. In a 
 report on Scottish agricultural workers by Sir James Wilson,
 
 NOTE TO APPENDIX I. 7^ 
 
 relating to 1919-1920, the average earnings, inclusive of overtime 
 and all allowances in kind, were estimated at £2 6s. 2d. a week. 
 Hours of work in Scotland vary from 52 to 60 a week. 
 
 In June, 1921, the Government announced its intention of 
 repealing the Corn Production Act, and abolishing the Agricul- 
 tural Wages Boards, a promise being given to set up voluntary 
 boards in their place. Meanwhile, it was agreed in July that an 
 aU-round reduction of 6s. should take place immediately, subject 
 to a minimum wage of £2 2s. per week. 
 
 Printing Trades. 
 
 Wages in the printing trades varied widely from town to town 
 before the war, and there were only local agreements. In many 
 places there was no standard at all, and none in most towns for 
 semi-skilled workers, and women. A national wages agreement 
 between the Printing and Kindred Trades Federation (which 
 includes most of the unions) and the several Masters' Associations 
 was reached in May, 1919. The towns are now grouped in a 
 London district and six provincial grades (three grades for 
 lithographic printers and five grades for printers' assistants), and 
 the rate is nationally determined for each grade. In the case of 
 compositors and bookbinders there is a difEerence of 15s. per week 
 in the rate between the highest and the lowest grade, and a 
 difference of 3s. between consecutive grades. Women's wages are 
 likewise subject to national agreements, but their rates amount to 
 less than one-half the standard of printers' assistants, or to rather 
 more than one-half in London, where a minimum wage was 
 estabhshed for some classes of women in 1914. The agreed rates 
 are minima in all cases, but the full amount is not received until 
 the termination of apprenticeship or a period of five years' 
 service. There are special rates in the newspaper trade, which is 
 regulated by separate agreements, and special rates are agreed for 
 certain " trade " houses. In the case of London compositors 
 engaged in daily or evening newspaper work, the rates are respec- 
 tively £8 and £7 15s. per week, while the London rate for electro- 
 typers and stereotypers engaged on newspaper work or employed 
 by trade houses, comes to £6 10s. per week. Provincial com- 
 positors and machine operators receive an additional rate of 12s. 
 to 13s. 6d. per week, or of 2s. 6d. per week for evening newspaper 
 work. Similarly, printers' assistants receive 6s. per week extra 
 when employed on night work, and warehousemen of either sex 
 employed by London wholesale newsagents must be paid a rate of 
 £4 15s. both on indoor day-work and on night-work, as against 
 the ordinary rate of £4 13s. 6d. for men and £2 9s. for women. 
 There is a separate national wages board for Scotland. The 
 journeymen's standard is about the same as that of compositors in 
 corresponding EngUsh provincial grades. Hours of work in the 
 printing trades were reduced in the spring of 1919 from 49-51 to 
 48 per week, with no loss of wages. Other provisions include
 
 80 WAGES, PRICES AND PROFITS. 
 
 payment for Bank Holidays (six in number) and an annual holiday 
 of six days. 
 
 Furnishing Trades. 
 
 Wages in the furnishing trades are fixed by agreements between 
 the local employers' associations and the National Amalgamated 
 Furnishing Trades Association and the Amalgamated Union of 
 Upholsterers. Similarly in the packing house section of the 
 industry district agreements are reached between the local bodies 
 of employers and workers. Wages are paid on a hourly basis. 
 The amount varies from one district to another, but the general 
 effect of war advances has been to level up wages in backward 
 districts, and the variations are less than in 1914. Hours of work 
 amounted to from 48 to 54 per week in 1914, but a 47 hour week 
 has since been widely estabhshed. This adjustment entailed a 
 reduction of as many as seven hours in Birmingham, and must 
 be taken into account in estimating the advance on weekly 
 earnings. 
 
 Various reductions of wages took place in June, 1921, and in 
 London a cost-of-Uving shding scale was agreed by which certain 
 rates ranging from 2s. 2d. per hour for cabinet makers to Is. l^d. 
 for upholstresses should coincide with a cost-of-Uving index figure 
 of 144. If prices were to fall to the pre-war level, these rates 
 would be reduced under the scale to Is. 3d. for cabinet-makers and 
 to 8d. for upholstresses. 
 
 Pottery Trades. 
 
 Wages in the pottery trades are negotiated between the 
 manufacturers' organisations and the National Pottery Workers' 
 Society. The figures given for 1914 relate only to the North 
 Staffordshire district, but the war advances apply to all important 
 centres in England and Scotland. The aggregate advance of 
 108^ per cent, includes an incorporated bonus of 66| per cent, on 
 pre-war rates and a war wage of 25 per cent, on earnings. Placers 
 and saggar-makers in the china and earthenware section have a 
 present basic rate of 7s. per day plus the general advance of 
 108| per cent. ; while minimum rates have been fixed for labourers 
 who had no standard until 1919, and for some classes of women. 
 The latter groups have in consequence received increases amount- 
 ing to a substantially higher percentage than the general advance. 
 
 Chemical Trades, 
 
 Wages in the chemical trades were practically unregulated 
 before the war, but in 1919 minimum rates were estabhshed for 
 the soap and candle trade, and for various other departments, 
 by agreements of the Joint Industrial Councils and by recom- 
 mendation of the Industrial Court. The standard of the fine 
 chemicals and drugs trade is about the same as that of the soap 
 and candle trade. In the heavy chemical trade men's wages
 
 NOTE TO APPENDIX I. 81 
 
 were governed during the war by national awards of the Com- 
 mittee on Production and women's wages by statutory orders 
 of the Ministry of Munitions. War advances followed broadly 
 the same course as in the engineering and ship-building trades. 
 
 Food Trades. 
 
 Bread Baking. — The wages of bakers and confectioners are 
 negotiated between the local Master Bakers' Associations and the 
 Amalgamated Union of Operative Bakers, separately, in each 
 district, but a national minimum wage of £3 5s. (£3 in rural areas) 
 was estabhshed in 1919 for adult male workers. The present 
 national minimum is £3 15s. (£3 10s. in rural areas), but the 
 district minimum amounts to as much as £4 17s. 6d. in many 
 towns in Scotland. There is an additional bonus for nightwork. 
 In the Manchester district the sum is 10s. a week for men starting 
 work between midnight and 6 a.m. ; while in Scotland men start- 
 ing work before 5 a.m. must be paid an extra 5s. a week, or 2s. 6d. 
 for work started between 5 a.m. and 6 a.m. Corresponding rates 
 are fixed for women, but do not amount to more than about two- 
 thirds of the men's standard. 
 
 Sugar Confectionery and Fruit Preserving Trades. — There were 
 no estabhshed rates in these trades until they were brought under 
 the Trade Boards Act in 1915. The present trade board rates 
 include a scale of minimum time-rates, and a piece-work basis time- 
 rate, which is 2|d. an hour (10s. per week) above the time-rate for 
 men, and l|d. per hour (6s. per week) above the time-rate for 
 women. Apart from the Trade Boards Act, these trades are 
 covered by agreements of the Interim Industrial Reconstruction 
 Committee of the Cocoa, Chocolate, Sugar Confectionery and Jam 
 Industries, representing the employers and the workers, and the 
 agreed rates are substantially higher than the legal minimum. In 
 the cocoa and chocolate trade, the agreed rate is 14s. 6d. above 
 the trade board rate for men and 8s. above the trade board rate 
 for women, with corresponding advantages to piece-workers. 
 Similarly, the age at which the full adult rate must be received is 
 fixed by the voluntary agreement at 21 instead of 24 years. 
 
 Tobacco Trades. 
 The wages of cigar makers are negotiated between the Cigar 
 Manufacturers' Association and the National Union of Cigar 
 Makers. Wages are fixed on a piece-work basis, and prices were 
 estabhshed before the war in the London area and elsewhere. 
 Wages in the unskilled section of tobacco manufacture were 
 practically unregulated until these trades were brought under the 
 Trade Boards Act in 1919. The figures given for 1914 and 1918 
 relate only to certain firms in the London district. 
 
 Distributive Trades. 
 The regulation of wages has reached its most advanced stage 
 among co-operative employees. The famous co-operative scale
 
 82 WAGES, PRICES AND PROFITS. 
 
 was drawn up in 1912 ; minima were fixed at £1 4s. for men and 
 17s. for women, and this scale formed the basis of subsequent 
 advances. Wages are at present determined by agreements of 
 the Joint Wages Councils, representing the various divisions of 
 the Co-operative Union Ltd., and the National Union of Distri- 
 butive Workers (formerly the Amalgamated Union of Co-operative 
 Employees). There are in all seven great divisions and some small 
 ones, the northern division being graded into seven districts with 
 various district rates; but the trade union object is to secure 
 so far as possible a national minimum wage. Clerks receive a few 
 shillings over the standard for shop assistants and work for 
 shorter hours, while warehousemen receive about 2s. under the 
 standard. 
 
 Regulation has been exceptionally difficult to establish in 
 commercial shops. The National Amalgamated Union of Shop 
 Assistants started a minimum wage campaign in 1910, minimum 
 wage committees were set up in each distiict, and agreements have 
 been reached with a large number of important firms, and with 
 some local employers' organisations ; but wages in unorganised 
 shops remained at an incredibly low level throughout the war, 
 especially in the case of women. The Union claims a four- 
 fiiths standard for women, but a fiat rate for clerks, shop 
 assistants and warehousemen. Shop assistants stand for a 
 uniform standard in all trades. 
 
 In the autumn of 1920, trade boards were set up for the milk 
 distributive and the grocery and provision trades, and later on 
 for the fruit, flower, poultry, and rabbit trade, and the meat 
 distributive trade. The poHcy of sectional boards was adopted 
 in spite of trade union opposition. Miminum rates have 
 been proposed for the milk distributive trade and the grocery and 
 provision trades, but in the latter case the grocers announced 
 their intention of disregarding the decision, and the Ministry of 
 Labour has refused to endorse the proposals. 
 
 Civil Service. 
 
 Wages were mainly regulated before the war by means of 
 Treasury circulars. In the case of post office workers, adjust- 
 ments followed the recommendations of specially appointed 
 Select Committees of the House of Commons. War advances 
 were afterwards subject to arbitration between the Treasury and 
 the various trade unions, and in May, 1920, a consoHdated war 
 bonus of 130 per cent, on basic salaries was granted on the 
 recommendation of the National Whitlej^ Council for the Civil 
 Service. There were no distinctions of sex, but the bonus was 
 subject to important modifications in the case of higher-paid 
 grades. The full amount is paid on the part of the salary up to 
 £1 15s. a week, 60 per cent, on the part between £1 15s. a week and 
 £200 a year, and 40 per cent, on the part over £200. The per- 
 centage is subject to revision every four months, or every six
 
 NOTE TO APPENDIX I. 83 
 
 months after May, 1921, and an increase or decrease of one-twenty 
 sixth takes place for every full five points rise or fall in the 
 Labour Gazette index number for the cost of living. The estimate 
 relates to the previous term, which accounts for the rise of two 
 points between November, 1920, and March, 1921. The figures 
 given in the general table for civil servants take no account of the 
 re-grading scheme by which in 1920 whole classes of men civil 
 servants were promoted into grades with higher basis salaries. 
 Apart from the war bonus, some badly paid classes of women, such 
 as shorthand typists, received special rate increases amounting in 
 some cases to lis. a week. Post office workers are divided into an 
 inner and outer London, and three provincial classes. There were 
 five provincial classes until 1920, when classes II. and III., and 
 classes IV. and V., were merged into class II and class III. respec- 
 tively. The class III. figures for 1914 relate to class IV. of that 
 date. Salaries rise automatically with years of service. Under 
 the latest post office scales, the age of promotion to the maximum 
 rate has been reduced by one year for men sorters, telegraphists 
 and clerks, two years for women, and by as much as eight years for 
 some classes of postmen. 
 
 Ptjblio Utility Services. 
 
 The wages of municipal employees are mainly regulated by 
 agreements of the Joint Industrial (District) Councils which 
 have been set up for the various departments, and represent the 
 corporation (or corporations) and the trade unions. Rates vary 
 considerably from one town to another, and fluctuate in most 
 cases with some form of cost-of-living sHding scale. The figures 
 given relate only to the London area. The sliding scale generally 
 adopted for " non-trading " maniial workers provides that when 
 the cost-of-living index number is at 140, a bonus shall be paid of 
 160 per cent, on wages up to £1 10s., 70 per cent on the next £2 10s. 
 and 45 per cent, on the balance, if any. This bonus is subject to 
 an increase or decrease of one-twenty-eighth for every five points 
 variation in the index figure above or below 140, the revision taking 
 place every three months. The London standard is a compara- 
 tively high one. In the great industrial centres of Northumber- 
 land and Durham, when the maximum advance was reached in 
 February, 1921, the scale of inclusive rates for " non-trading " 
 manual workers ranged from £4 10s. Id. to £5 3s. 4d., as compared 
 with £4 8s. 3d. to £5 7s. for corresponding groups in London ; 
 while, in the West Midlands district, the corresponding groups 
 were rated from £3 9s. to £3 lis. in large towns, with a flat rate of 
 £2 7s. in rural districts. 
 
 In the case of electricity supply undertakings, wages are 
 adjusted by District Councils of the Joint National Industrial 
 Council for the Electricity Supply Industry. War advances in the 
 London district were consolidated in a revised hourly rate in the 
 spring of 1920, and the maximum advance under the cost-of-hving
 
 84 WAGES, PRICES AND PROFITS. 
 
 eliding scale took place in the following November. Rates of 
 wages for gas workers vary from one company to another, and 
 from district to district. War advances for some groups of 
 workers followed broadly the same course as in the engineering 
 and ship-building trades. Adjustments are now made on a 
 national basis, but in some awards towns are graded, and different 
 rates are fixed according to the size of the undertakings. 
 
 NOTE TO TABLE II. 
 
 The object of Table II. is to show comparative figures of war 
 advances for representative classes of workers in various 
 industries, but the columns do not contain any new matter, and 
 form merely an extract from Table I. The percentages are based 
 in each case on the figures previously given for the class of 
 worker and the district in question. Where a large group of 
 workpeople in an industry are covered by a general percentage 
 advance, this rate has been taken as representative of the industry, 
 but there has been no attempt to arrive at a general or average rate 
 for all workers. The percentages relate only to the class of worker 
 and to the district named in the column. In the building and 
 furnishing trades, where wages are paid on an hourly basis, the 
 percentage has been adjusted so as to take account of the reduction 
 in the hours of work, and to show the real and not merely the 
 nominal advance in the normal weekly wage. Similarly, in the 
 cotton industry, where the reduction in the hours of work has 
 not been compensated for to piece-workers by corresponding wages 
 adjustments, the necessary allowance has been made in the 
 percentage. It would not otherwise be a fair ground of 
 comparison between these and other industries, where there is a 
 weekly time-rate, or compensation for loss of time has been 
 received by piece-workers.
 
 APPENDIX II. PRICES 
 
 Sources of Information. 
 
 " Statistics of Retail Prices " — Labour Gazette (Official. 
 Abstract of Labour Statistics (Official).
 
 86 
 
 WAGES, PRICES AND PROFITS. 
 
 Table I. 
 
 COST OF LIVING INDEX. 
 
 {Labour Gazette). 
 Monthly Record. 
 
 July, 
 
 1914 100 
 
 
 
 
 
 
 Jan., 
 
 1915 115 
 
 Jan., 
 
 1916 135 
 
 Jan., 1917 165 
 
 Jan., 1918 190 
 
 Feb., 
 
 115 
 
 Feb., 
 
 135 
 
 Feb., 
 
 170 
 
 Feb.. „ 190 
 
 March, 
 
 120 
 
 Mar., 
 
 140 
 
 March 
 
 170 
 
 March, „ 190 
 
 April, 
 
 120 
 
 April, 
 
 140 
 
 April, 
 
 175 
 
 April, „ 195 
 
 May, 
 
 120 
 
 May, 
 
 145 
 
 May, 
 
 175 
 
 May, „ 200 
 
 June, 
 
 125 
 
 June, 
 
 145 
 
 June, 
 
 180 
 
 Jime, „ 200 
 
 July, 
 
 125 
 
 July, 
 
 150 
 
 July, 
 
 180 
 
 July, „ 205 
 
 August, 
 
 125 
 
 August, 
 
 150 
 
 August, 
 
 180 
 
 August, „ 210 
 
 Sept., 
 
 125 
 
 Sept., 
 
 150 
 
 Sept., 
 
 185 
 
 Sept., „ 210 
 
 Oct., 
 
 180 
 
 Oct., 
 
 155 
 
 Oct., 
 
 180 
 
 Oct., „ 220 
 
 Nov., 
 
 135 
 
 Nov., 
 
 160 
 
 Nov., 
 
 185 
 
 Nov., „ 225 
 
 Dec, 
 
 135 
 
 Dec, 
 
 165 
 
 Dec, 
 
 185 
 
 Dec, „ 225 
 
 Jan., 
 
 1919 220 
 
 Jan., 
 
 1920 225 
 
 Jan., 1921 265 
 
 
 Feb., 
 
 220 
 
 Feb., 
 
 230 
 
 Feb., 
 
 251 
 
 
 March, 
 
 215 
 
 March, 
 
 230 
 
 March, 
 
 241 
 
 
 April 
 
 210 
 
 April, 
 
 232 
 
 April, 
 
 233 
 
 This table gives the 
 
 May, 
 
 205 
 
 May, 
 
 241 
 
 May, 
 
 „ 228 
 
 monthly fluctuation 
 
 June, 
 
 205 
 
 June, 
 
 250 
 
 June, 
 
 219 
 
 for cost of living. 
 
 July, 
 
 210 
 
 July, 
 
 252 
 
 
 
 including, besides 
 
 August, 
 
 215 
 
 August, 
 
 255 
 
 
 
 food, clothing, rents, 
 
 Sept., 
 
 215 
 
 Sept., 
 
 261 
 
 
 
 etc. 
 
 Oct., 
 
 220 
 
 Oct., 
 
 264 
 
 
 
 
 Nov., 
 
 225 
 
 Nov., 
 
 276 
 
 
 
 
 Dec, 
 
 225 
 
 Dec, 
 
 269 
 
 
 
 
 Table II. 
 
 RETAIL FOOD PRICES. 
 {Labour Gazette.) 
 
 1905 
 
 100 
 
 increase per 
 
 cent, over 1905. 
 
 
 1906 
 
 98.94 
 
 1.06% decrease. 
 
 
 1097 
 
 101.85 
 
 1.85% increase. 
 
 
 1908 
 
 104.3 
 
 4.3 
 
 % 
 
 J 
 
 
 1909 
 
 104.4 
 
 4.4 
 
 % 
 
 J 
 
 
 1910 
 
 106.1 
 
 6.1 
 
 % 
 
 J 
 
 
 1911 
 
 106.1 
 
 6.1 
 
 % 
 
 J 
 
 
 1912 
 
 111.1 
 
 11.1 
 
 % 
 
 J 
 
 
 1913 
 
 111.4 
 
 11.4 
 
 % 
 
 J 
 
 
 1914 
 
 113.3 
 
 13.3 
 
 % 
 
 J 
 
 
 1915 
 
 150.7 
 
 50.7 
 
 % 
 
 J 
 
 
 1916 
 
 182.4 
 
 82.4 
 
 % 
 
 J 
 
 
 1917 
 
 231.1 
 
 131.1 
 
 % 
 
 , 
 
 
 1918 
 
 237.9 
 
 137.9 
 
 % 
 
 J 
 
 
 1919 
 
 236.8 
 
 136.8 
 
 % 
 
 J 
 
 June, 
 
 1920 
 
 288.9 
 
 188.9 
 
 % 
 
 , 
 
 Nov., 
 
 1920 
 
 312.7 
 
 212.7 
 
 % 
 
 
 June, 
 
 1921 
 
 248.1 
 
 148.1 
 
 % 
 
 • 
 
 It should be noted that the base year is 1905, while the Cost of 
 Living and Food Prices Index given in the Labour Gazette each 
 month is based on the year 1914. It will be seen that from 1906
 
 APPENDIX II.— PRICES. 
 
 87 
 
 there was a steady increase to 1914, when the outbreak of war 
 produced a much more rapid increase continuing until 1918. A 
 slight decrease followed, but an enormous jump took place in 
 1919-20 until the highest point of the entire period was reached in 
 November, 1920, when foodstuffs cost more than three times the 
 1905 prices. From November, 1920, a steady decline set in which 
 has continued to the present time, but the figure is still higher than 
 at any time prior to 1919. 
 
 Table III. 
 
 INCREASE IN CLOTHING PRICES. 
 
 1915. 
 
 1916. 
 
 1917. 
 
 1918. 
 
 1919. 
 
 1920. 1921. 
 
 March . . 12i% 
 June . . 25% 
 Sept. . . 30% 
 Dec. . . 35% 
 
 45% 
 55% 
 65% 
 80% 
 
 90% 
 100% 
 120% 
 140% 
 
 170% 
 210% 
 240% 
 260% 
 
 260 ?/o 
 260% 
 260% 
 270% 
 
 310% 240% 
 320-330% 
 
 330% 
 300-310% 
 
 This table is given with an explanatory article in the Labour 
 Gazette for April, 1921. As previously explained the method of 
 calculation cannot be regarded as satisfactory, but even these 
 official figures show an increase of 240 per cent, for March, 1921. 
 Remembering that clothing is insufficiently weighted by the 
 Ministry of Labour in making up the Cost of Living Index, we 
 can see what a difference such a factor wiU make. 
 
 Table IV. 
 
 VALUE OF £1 IN FOOD. 
 (Labour Oazette.) 
 
 July, 
 
 1914 . 
 
 . 20/- 
 
 Jan., 
 
 1917 
 
 . 10/8 
 
 July, 
 
 1919 
 
 9/6 
 
 Jan., 
 
 1915 . 
 
 . 17/- 
 
 July, 
 
 1917 
 
 . 9/9i 
 
 Jan., 
 
 1920 
 
 8/5* 
 
 July, 
 
 1915 . 
 
 . 15/- 
 
 Jan., 
 
 1918 
 
 . 9/9 
 
 July, 
 
 1920 
 
 . 7/9 
 
 Jan., 
 
 1916 . 
 
 . 13 /9i 
 
 July, 
 
 1918 
 
 9/6 
 
 Jan., 
 
 1921 
 
 7/2 
 
 July, 
 
 1916 . 
 
 . 12/5 
 
 Jan., 
 
 1919 
 
 . 8/8 
 
 June, 
 
 1921 
 
 . 9/2 
 
 Table V. 
 
 COST OF GOVERNMENT STANDARD WORKING-CLASS BUDGET. 
 
 1905 
 
 22/7 
 
 1911 
 
 24/- 
 
 191 
 
 51 6 
 
 1906 
 
 22/5 
 
 1912 
 
 25/1 
 
 1918 
 
 53/11 
 
 1907 
 
 23/2 
 
 1913 
 
 25/2 
 
 1919 
 
 .'■)3/3 
 
 1908 
 
 23/7 
 
 1914 
 
 25/8 
 
 1920 (Jiuie) 
 
 65/5 
 
 1909 
 
 23/7 
 
 1915 
 
 33 '9 
 
 1920 (\ov.) 
 
 70/10 
 
 1910 
 
 24/- 
 
 1916 
 
 40 '6 
 
 1921 (June) 
 
 56/2
 
 88 
 
 WAGES, PRICES AND PROFITS. 
 
 Table VI. 
 
 WHOLESALE PRICES. 
 
 {Times Index number — 60 articles). 
 (Base year is 1913 — whole year). 
 
 The following table shows how wholesale prices have varied 
 during the period immediately before and after the greatest in- 
 crease in Retail Prices. Retail Prices Index numbers are given 
 for comparison. 
 
 
 Food. 
 
 Materials. 
 
 Total 
 
 Food Retail 
 
 
 
 
 combined. 
 
 (Lab. Gnz.) 
 
 May, 1920 
 
 305.9 
 
 372.0 
 
 347.8 
 
 246 
 
 June, „ 
 
 
 
 304.4 
 
 352.5 
 
 334.8 
 
 255 
 
 July, „ 
 
 
 
 300.2 
 
 351.7 
 
 332.8 
 
 258 
 
 Aug., „ 
 
 
 . 
 
 287.5 
 
 346.2 
 
 324.7 
 
 262 
 
 Sept., „ 
 
 
 . 
 
 293.5 
 
 332.5 
 
 318.2 
 
 267 
 
 Oct., 
 
 
 , 
 
 297.8 
 
 309.9 
 
 305.5 
 
 270 
 
 Nov., ,, 
 
 
 
 276.5 
 
 265.4 
 
 269.5 
 
 291 
 
 Dec, 
 
 
 
 260.8 
 
 245.6 
 
 251.2 
 
 282 
 
 Jan., 1921 
 
 
 
 244.8 
 
 219.7 
 
 228.9 
 
 278 
 
 Feb., „ 
 
 
 
 226.3 
 
 202.3 
 
 211.1 
 
 263 
 
 Mar.. „ 
 
 
 
 223.7 
 
 191.6 
 
 203.4 
 
 249 
 
 April, „ 
 
 
 216.4 
 
 187.6 
 
 198.2 
 
 238 
 
 May, „ 
 
 
 204.5 
 
 185.6 
 
 192.5 
 
 232 
 
 June, ,, 
 
 
 
 
 
 218 
 
 Comparing the first and the last columns we notice that 
 Wholesale Prices were declining rapidly while Retail Prices 
 were mounting equally rapidly (May- November, 1920). The 
 curves given in diagram show this more clearly. It will be 
 obvious that the Cost of Living, which depends on Retail Prices, 
 cannot be gauged by the Index numbers for Wholesale Prices. 
 
 Table VII. 
 
 WHOLESALE PRICES. 
 
 (From a paper in the Journal of the Royal Statistical Society, March, 1921, 
 
 by A. W. Flux.) 
 
 
 ' Board of 
 
 Economist, 
 
 Statist, 
 
 Times, 
 
 Bureau of 
 
 Federal 
 
 
 Trade, 1900 
 
 1901-5 
 
 1867-77 
 
 Dec. 31st, 
 
 Labourl913 
 
 Reserve 
 
 
 1 =100. 
 
 =100. 
 
 = 100. 
 
 1913=100. 
 
 =100 
 
 Board, 
 = 100 
 
 Jan., 1919 
 
 .! 286.7 
 
 265.7 
 
 192.1 
 
 232.2 
 
 203 
 
 195 
 
 April. 1919 
 
 .; 292.3 
 
 262.4 
 
 184.6 
 
 227.6 
 
 203 
 
 196 
 
 July, 1919 
 
 .1 281.8 
 
 293.2 
 
 206.4 
 
 252.0 
 
 219 
 
 211 
 
 Oct., 1919 
 
 .! 323.9 
 
 308.9 
 
 224.3 
 
 277.4 
 
 223 
 
 212 
 
 Jan., 1920 
 
 356.6 
 
 353.1 
 
 245.3 
 
 313.4 
 
 248 
 
 242 
 
 April, 1920 
 
 374.4 
 
 374.2 
 
 266.1 
 
 329.2 
 
 265 
 
 263 
 
 July, 1920 
 
 404.3 
 
 358.0 
 
 254.6 
 
 305.8 
 
 262 
 
 250 
 
 Oct., 1920 
 
 .! 377.5 
 
 1 
 
 326.1 
 
 239.9 
 
 290.1 
 
 225 
 
 208 
 
 The last two columns refer to U.S.A. The table is given 
 merely to show that Index numbers compiled by different 
 authorities do not agree with each other. Not that the actual 
 figures should agree (for the base years are all different), but 
 they do not agree in their general character. The Board of Trade 
 Index Number reaches its highest point in July, 1920, while all
 
 APPENDIX II.— PRICES. 
 
 89 
 
 the other Enghsh series reach their highest figure in June. From 
 July to October, 1920, the Board of Trade Number decreases by 
 6.6 per cent, of the July figure, the Economist by 8.9 per cent., 
 the Statist by 5.8 per cent., and The Times by 5.1 per cent. The 
 Index number method is not infallible either for Wholesale or for 
 Retail Prices, by whatever authority it is compiled. 
 
 Table VIII.* 
 
 VARIATIONS IN REAL WAGES (PURCHASING POWER) OR STANDARD 
 
 OF LIFE. 
 
 July, 1914 = 100. 
 
 End of 
 
 1915 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 Building 
 
 80.8 
 
 80.6 
 
 89.8 
 
 90.7 
 
 94.7 
 
 84.02 
 
 Mining 
 
 97.8 
 
 101.8 
 
 99.5 
 
 89.0 
 
 98.2 
 
 97.4 
 
 Engineering 
 
 86.7 
 
 75.8 
 
 85.7 
 
 89.4 
 
 95.6 
 
 86.7 
 
 Steel 
 
 85.2 
 
 77.0 
 
 90.3 
 
 82.0 
 
 102.2 
 
 104.0 
 
 Cotton 
 
 74.1 
 
 63.7 
 
 73.0 
 
 93.4 
 
 98.2 
 
 104.8 
 
 Wool 
 
 79.6 
 
 75.8 
 
 80.0 
 
 81.8 
 
 104.4 
 
 104.4 
 
 Hosiery 
 
 80.0 
 
 72.2 
 
 70.9 
 
 68.5 
 
 88.9 
 
 83.7 
 
 Dyeing 
 
 82.2 
 
 75.8 
 
 89.8 
 
 92.5 
 
 101.8 
 
 103.0 
 
 Tailoring . . 
 
 74.1 
 
 60.6 
 
 67.6 
 
 66.7 
 
 66.7 
 
 79.0 
 
 Boot and Shoe 
 
 79.3 
 
 66.7 
 
 72.0 
 
 71.9 
 
 83.0 
 
 71.8 
 
 Railways 
 
 89.7 
 
 86.7 
 
 103.2 
 
 108.0 
 
 117.8 
 
 117.1 
 
 Road Transport . 
 
 81.5 
 
 69.7 
 
 80.0 
 
 87.6 
 
 93.4 
 
 89.0 
 
 Doclis 
 
 81.5 
 
 72.2 
 
 84.9 
 
 81.8 
 
 97.4 
 
 113.3 
 
 Printing 
 
 79.8 
 
 69.7 
 
 74.5 
 
 83.1 
 
 96.9 
 
 95.2 
 
 Furnishing . . 
 
 74.1 
 
 68.5 
 
 70.3 
 
 69.4 
 
 89.8 
 
 87.0 
 
 Pottery 
 
 79.3 
 
 70.3 
 
 69.8 
 
 71.1 
 
 80.0 
 
 77.4 
 
 Baldng 
 
 80.8 
 
 67.9 
 
 72.5 
 
 86.2 
 
 92.9 
 
 95.2 
 
 Post Office . . 
 
 77.8 
 
 64.9 
 
 70.3 
 
 69.4 
 
 1 
 
 82.6 
 
 93.4 
 
 Table IX.* 
 
 PERCENTAGE VARIATION IN PURCHASING POWER (REAL WAGES) OR 
 STANDARD OF LIFE. 
 
 (Compared with July, 1914.) 
 
 End of 
 
 1915 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 
 1920 
 
 
 % 
 
 % 
 
 % 
 
 °C 
 
 % 
 
 % 
 
 Building 
 
 —19.2 
 
 —19.4 
 
 —10.2 
 
 — 9.3 
 
 — 5.3 
 
 —15.98 
 
 Mining 
 
 — 2.2 
 
 + 1.8 
 
 — 0.5 
 
 —11.0 
 
 — 1.8 
 
 2.6 
 
 Engineering 
 
 —13.3 
 
 —24.2 
 
 — 4.3 
 
 —10.6 
 
 — 4.4 
 
 —13.3 
 
 Steel 
 
 —14.8 
 
 —23.0 
 
 — 9.7 
 
 —18.0 
 
 + 2.2 
 
 + 4.0 
 
 Cotton 
 
 —25.9 
 
 —36.3 
 
 —27.0 
 
 — 6.6 
 
 —1 .8 
 
 + 4.8 
 
 Wool 
 
 —20.4 
 
 —24.2 
 
 —20.0 
 
 —18.2 
 
 + 4.4 
 
 + 4.4 
 
 Hosiery 
 
 —20.0 
 
 —27.8 
 
 —29.1 
 
 —31.5 
 
 -11.1 
 
 — 16.S 
 
 Dveing 
 
 —17.8 
 
 —24.2 
 
 —10.2 
 
 — 7.5 
 
 + 1.8 
 
 + 3.0 
 
 Tailoring . . 
 
 —25.9 
 
 —39.4 
 
 —32.4 
 
 —33.3 
 
 —33.3 
 
 —21.0 
 
 Boot and Shoe . . 
 
 —20.7 
 
 —33.3 
 
 —28.0 
 
 —28.1 
 
 —17.0 
 
 —28.2 
 
 Railways . . 
 
 —10.3 
 
 —13.3 
 
 + 3.2 
 
 + 8.0 
 
 + 17.8 
 
 + 17.1 
 
 Road Transport .. 
 
 —18.5 
 
 —30.3 
 
 —20.0 
 
 —12.4 
 
 — 6.6 
 
 —11.0 
 
 Docks 
 
 —18.5 
 
 —27.8 
 
 —15.1 
 
 —18.2 
 
 — 2.6 
 
 + 13.3 
 
 Printing . . 
 
 —20.2 
 
 —30.3 
 
 —26.5 
 
 —16.9 
 
 — 3.1 
 
 — 4.8 
 
 Fiimishing . . 
 
 —25.9 
 
 —31.5 
 
 —29.7 
 
 —30.6 
 
 —10.2 
 
 —13.0 
 
 Pottery 
 
 —20.7 
 
 —29.7 
 
 —30.2 
 
 —28.9 
 
 —20.0 
 
 —22.6 
 
 Baking 
 
 —19.2 
 
 —32.1 
 
 —27.5 
 
 —13.8 
 
 — 7.1 
 
 — 4.8 
 
 Post Otflce 
 
 —22.2 
 
 —35.1 
 
 —29.7 
 
 —30.6 
 
 -17.4 
 
 — 6.6 
 
 See Table II. of Appendix I.
 
 APPENDIX III. PROFITS. 
 
 Sources of Information. 
 
 Economist. 
 
 Board of Trade : Company Reports for 1918 and 1919 [H.C. 182 
 (1919), H. C. 190 (1920).] 
 
 Share Price Lists. 
 
 Inland Revenue, Commissioners Reports for 1914 and 1919 
 [Cmd. 8116 (1915), Cmd. 1083 (1920)].
 
 92 
 
 WAGES, PRICES AND PROFITS. 
 
 Table I. 
 Bonus Shares issued in 1920. 
 
 For some time it has been customary to see references made 
 in the Labour and Socialist Press to the issue of bonus shares. 
 These references have been to bonus shares issued by particular 
 companies only, and no attempt, so far as is known, has been 
 made to analyse the figures for each industry or to estimate 
 the amount which was paid out to shareholders in this way. 
 
 The first table given below, compiled from records available 
 in the Labour Research Department, gives in the first and second 
 columns the number of companies which have paid bonus shares 
 and the industry into which they fall. The third column gives, 
 not the total paid-up capital of the companies, but of that part on 
 which these bonus shares are paid. The fourth column gives the 
 total amount of past accumulated profits received by the share- 
 holders in the form of these bonus shares. If the total figures of 
 all the industries are taken, it is found that on the average these 
 235 companies distributed two fully-paid-up shares for every three 
 shares held. It should be noted that these bonus issues are almost 
 always paid out to the ordinary shareholders. 
 
 The year 1920 has been taken partly because the records for 
 that year are more easily obtainable and partly because this 
 practice had reached its zenith in that year. As can be seen from 
 the number of companies embracing as they do almost every 
 industry in the country, the results may be taken as fairly indica- 
 tive that this method of distributing profits was widespread 
 throughout the world of capitaUsm. 
 
 Bonus Shares issued in 1920. 
 
 
 
 Paid up Capital 
 
 
 Industry. 
 
 No. of 
 
 on which 
 
 Amount of 
 
 
 Companies. 
 
 bonus is paid. 
 
 bonus issue. 
 
 Amusement 
 
 6 
 
 £ 
 990,558 
 
 £ 
 530,588 
 
 Coal, Iron and Steel 
 
 21 
 
 9,965,055 
 
 6,141,171 
 
 Engineering and Shipbuilding 
 
 26 
 
 8,156,570 
 
 4.562,874 
 
 Finance and Banking 
 
 11 
 
 6,322,887 
 
 3,395,310 
 
 Food, Drink and Tobacco . . 
 
 22 
 
 19,827,466 
 
 7.779,094 
 
 Merchanting . . 
 
 11 
 
 4,631,302 
 
 1,208,708 
 
 Metals 
 
 10 
 
 3,557,279 
 
 873,749 
 
 Miscellaneous 
 
 24 
 
 9,135,629 
 
 6,987,344 
 
 Shipping, Railways, and other 
 
 
 
 
 Transport 
 
 20 
 
 13,055,786 
 
 5,510,406 
 
 Tea, Rubber, etc. . . 
 
 50 
 
 8,951,510 
 
 10,898,434 
 
 Textiles, Clothings and General 
 
 
 
 
 Distribution 
 
 27 
 
 12,169,322 
 
 16,716,470 
 
 Warehousing, Storage, &c 
 
 7 
 
 1,193,750 
 
 636,250 
 
 Total 
 
 235 
 
 £97,957,114 
 
 £65,240,398
 
 APPENDIX III.— PROFITS. 93 
 
 The above table is not absolutely complete because in the 
 first place it only deals with bonus issues made by public com- 
 panies ; it, therefore, excludes all bonus issues made by private 
 companies which are known in many cases to be very great in 
 proportion to their paid-up capital. Secondly bonus issues of a 
 small proportion of pubhc companies are not included as particu- 
 lars are not yet available. 
 
 Though exact data are not to hand, it is generally accepted 
 that the issue of bonus shares became increasingly popular from 
 the very beginning of the war. This increasing popularity was 
 partly due to the opening which this method gave to companies to 
 hide their true position ; thus, a company which had doubled its 
 profit and yet wanted to keep its dividend at, say, 10 per cent., 
 could double its capital by issuing bonus shares in the proportion 
 of one new share for every old share held, and thus distribute 
 double the amount in the form of dividends while still keeping the 
 dividend rate at 10 per cent. 
 
 Bonus shares have another great advantage in that they 
 render their recipients free from habiMty to super tax, which 
 they might otherwise have had to pay if the money, distributed as 
 bonus shares, had been paid out in the form of dividends. This 
 immunity from super-tax in respect of bonus shares has for some 
 years been disputed by the Inland Revenue Authorities ; it was 
 only on June 3rd, of this year that, after a case has been heard 
 in the House of Lords, it was finally decided by a majority of three 
 to two that bonus shares are not liable to super tax. Some words 
 of the dissenting judgment of Lord Dunedin are worth quoting 
 from a passage in which he refers to the different methods 
 employed by a company in order to obtain capital : — 
 
 " In the present case the company might say, and it did 
 say to its shareholders — ' There is a large sum of undivided 
 profits. We shall allot to each shareholder his proportional 
 amount of these profits, but we will not pay that amount in 
 cash but will impute it to the payment of the shares we are 
 issuing, and give each shareholder the shares for which his 
 allotted amount effectuated payment.' He could not 
 himself escape from the feeUng that that was just giving 
 to the shareholder his share of undivided profits not in cash, 
 but in the shape of paid-up shares, and if that was so, it 
 seemed to him to fall within the description of taxable 
 income." 
 
 Id view of this judgment it is interesting to compare the results 
 of this table with the total incomes assessed to super-tax in 1918- 
 1919 (the last year for which figures are available). We get the 
 following result. The total of incomes assessed amounted to 
 close on £333| milhons, and the bonus issue in 1920 amounted to 
 over £65 millions, thus representing about 20 per cent, of the 
 total income assessed for super-tax.
 
 94 WAGES. PRICES AND PROFITS. 
 
 The opposite table is supplementary to the table given above. 
 Here is analysed the position of those companies which made 
 issues of shares to their shareholders at a price which, though 
 considerably below the market price of the shares, were still above 
 the nominal value. This enabled the shareholder, by selling these 
 shares he subscribed for in this way, to pocket the profit and 
 enabled the company to increase its reserve for future " con- 
 tingencies." The Imperial Tobacco Co., for instance, issued in 
 1920, new £1 shares to its ordinary shareholders in the proportion 
 of one new share for every three held, at the price of 40/- ; 
 immediately after this operation, the shares were quoted at 55/6 ; 
 this enabled the shareholder to sell out his holding and pocket 
 15/6 per share on the transaction and enabled the company to 
 increase its reserve (generally entitled" share premium account.") 
 by 20/- on each share issued. In this case the Imperial Tobacco 
 Co. was enabled to put to reserve a total of £5,573,248, while the 
 shareholders were enabled to pocket a total of £4,941,595, always 
 assuming that all the holders were able to, and in fact did, sell 
 out at the price quoted above. 
 
 On this basis, therefore, the table opposite has been constructed. 
 It shows that these operations were just as widespread in 1920 as 
 the practice of issuing bonus shares. For from columns 2 and 3 
 it will be seen that a total of 225 companies are given ; the shares 
 of 28 of these companies were apparently not dealt with on the 
 Stock Exchange, as no quotations can be found. The 3rd and 4th 
 columns give the total amount of shares issued in this way. The 
 amount of issue by companies whose shares are quoted are given 
 separately from those which are unquoted. 
 
 The fifth column gives the amount of money which the com- 
 panies were enabled to appropriate to their reserves by the issue 
 of their shares at a price higher than the nominal value. These 
 reserves only went to swell other accumulated reserves which 
 would eventually be distributed to the ordinary shareholders in 
 some form. The Aerated Bread Co., for instance, in February, 
 1920, issued £63,750 £1 shares to its shareholders at the price of 
 £4. The premiums derived from these shares were put to reserve. 
 In the next month, however, the company capitalised these 
 premiums together with certain other reserves and issued fully- 
 paid-up bonus shares to its ordinary shareholders in the propor- 
 tion of one new share for every share held, the new shares ranking 
 for dividend as from March 28th of that year. 
 
 The seventh column is an estimate of the total profits accruing 
 to shareholders bj^ the sale of these shares at the price quoted 
 immediately after the issue. Thus the Shell Transport and 
 Trading Co. issued 6,433,852 £1 shares at par to its ordinary 
 shareholders. The price of the ordinary shares, immediately 
 after this operation, was quoted at £6 ; at this price consequently 
 by selling all these shares the shareholders would have been able 
 to make a profit of £38,603,112.
 
 APPENDIX III.— PROFITS. 
 
 95 
 
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 96 
 
 WAGES, PRICES AND PROFITS. 
 
 The eighth column gives an indication of the percentage profit 
 made by the shareholders on the capital temporarily suppUed by 
 them to facihtate this transaction. Here, however, it should be 
 pointed out that especially where the issue of these shares was 
 large as compared with the original paid-up capital the operation of 
 selling these shares may have resulted in a fall in the price before 
 the operation could be completed ; further, of course, there is no 
 certainty that all the shareholders were \dlling to sell their shares 
 owing to the fact that they expected to gain a still greater profit 
 by a further rise in the future. But when both these considera- 
 tions are taken into account it still remains true that very large 
 profits could have been made by individual shareholders without 
 making permanent inroads into their capital resources, by the 
 simple method of obtaining short term loans from their banks 
 to finance these operations. Besides, even if the figure of 
 £108,003,994 is held to be an exaggeration of the real position in 
 view of the above considerations, it is outweighed by the fact that 
 this table is by no means comprehensive ; at least eighty public 
 companies are not included owing to their method of issuing these 
 shares being too complicated. 
 
 Finally a comparison with Table VIII (Capital AppHcations) is 
 most interesting. From thac table it will be seen that whereas 
 £143,180,500 was applied for by pubhc limited companies from 
 the pubhc in 1913, £271,477,900 was applied for in 1920. But 
 these figures which are taken from The Economist do not include 
 bonus shares issued to shareholders otherwise than for cash. So 
 in reahty to the figure for 1920 should be added £65,240,398, the 
 total amount of bonus issues as given in the first table above, 
 totalling £336,718,298. It may be said that a few issues of this 
 kind were made in 1914, but in view of the fact that our tables 
 are incomplete this addition may be taken as quite justifiable. 
 Thus we get in 1920 alone a permanent addition to the capital 
 of pubhc companies of 135 per cent., as compared with 1913, on 
 which dividends must be earned. 
 
 Table II. 
 
 COTTON PROFITS. 
 
 Drawn by 
 Capital as 
 
 Yearly 
 Average, 
 1909-13. 
 
 Yearly Yearly 
 Average, Average, 
 1912-13. 1914-18. 
 
 Year, 
 1919. 
 
 Year, 
 1920. 
 
 Dividends 
 
 Reserves 
 
 £ 
 
 1,685,000 
 455,000 
 
 £ £ 
 
 2,700,000 i 2,130,000 
 710,000 1,278,000 
 
 £ 
 
 4,956,000 
 3,589,000 
 
 £ 
 
 12,725,000 
 6,362,000 
 
 Total to 
 Owners 
 
 2,140,000 
 
 3,410,000 j 3,408,000 
 
 8,545,000 
 
 19,087,000
 
 APPENDIX ni.— PROFITS. 
 
 97 
 
 From investigations into the cotton industry carried on by 
 the Department the foregoing indications as to the profit made by 
 this industry can be given. On the basis of particulars given by 
 certain cotton trade papers as to the profits of a hundred firms, 
 the above calculation has been made as to the total profits made 
 in the spinning section of the cotton industry. 
 
 Looking at the spinning industry from the point of view of 
 changes in ownership and consequent recapitalisation we find the 
 following startling results. 
 
 A total of 238 mills, covering about 23,832,000 spindles, or 
 42 per cent, of the total spindleage in the industry changed hands 
 in 1919 and 1920. Their former capital reached a total of 
 £10,815,000. The amount obtained by their sale was £71,875,000 
 or 665 per cent, of the original capitalisation and the total of new 
 capital involved in their recapitaUsation was £33,777,000 or 
 312 per cent, of the original capitahsation. 
 
 Supposing the whole of the industry had changed hands on the 
 basis on which the 42 per cent, changed hands in 1919 and 1920 
 the resulting new capitalisation would be £78,872,000. The 
 effects of this enormous recapitaHsation are far reaching on the 
 wages of the workers employed in the industry. The following 
 table gives the effect of the recapitaHsation on the profits drawn 
 by capital on the basis of — 
 (a) dividends of 10 per cent, on share capital and 2^ per cent, in 
 
 reserves ; 
 (6) dividends of 5 per cent, on share capital and l^ per cent, in 
 
 the yearly average of 1909-13 is given for purposes of comparison. 
 
 Drawn by Capital ae 
 
 10% dividends. 
 2J% reserves. 
 
 5 % dividends. 
 li% reserves. 
 
 Yearly average, 
 1909-13. 
 
 Dividendj 
 
 ReservesJ . . 
 
 £ 
 7,887,000 
 1,972,000 
 
 £ 
 
 3,943,000 
 986,000 
 
 £ 
 1,685,000 
 455,000 
 
 Total to Owners . . 
 Interest on loans . . 
 
 9,859,000 
 3,000,000 
 
 4,929,000 
 3,000,000 
 
 2,140,000 
 565,000 
 
 Total to Capital . . 
 
 £12,859,000 
 
 £7,929,000 
 
 £2,705,000 
 
 On the basis of this recapitaHsation and taking 220,000 to be 
 the number of workers employed in the industry* the foUowing 
 excess claim is made on the worker. 
 
 
 Claim of 
 
 Capital. 
 
 1921. 
 
 Average 
 
 Drawn by 
 
 Capital, 
 
 1909-13. 
 
 Excess of 
 
 1921 
 
 Claim. 
 
 What exc( 
 meant fo) 
 
 »ss claim 
 worker. 
 
 
 per year. 
 
 per week. 
 
 Basis 10% 
 Baals 5% 
 
 £ 
 
 12,859,000 
 
 7.929 000 
 
 £ 
 2.705,000 
 2,705,000 
 
 £ 
 10,154,000 
 5,224.000 
 
 £ s. d. 
 46 
 23 10 
 
 £ s. d. 
 
 17 8 
 
 9 
 
 * Ad estimate biised on the 1911 census figures.
 
 98 
 
 WAGES, PRICES AND PROFITS. 
 
 The position may be summed up in the following quotation 
 from the Manchester Guardian Commercial of January 27th, 1921. 
 
 (From an article entitled" Survey of Cloth and Cotton Market : 
 Profits and Appreciated Mill Values," by M.G. Royal Exchange 
 Representative . ) 
 
 " In taking a mental survey of 1920 in the Cotton Trade 
 certain features stand out with particular distinctness. 
 Chief amongst them may be noted the fact that the year 
 witnessed the completion of a course of recapitalisation 
 which affected more than 200 spinning and weaving concerns 
 and that this recapitalisation by which shareholders and 
 speculators benefited to the extent of many miUions of 
 pounds, has made it compulsory for much larger profits than 
 formerly to be wo^Ze." 
 
 Thus we have it that on the basis of the 10 per cent, return, 
 capital will deny 17s. 8d. a week to each of the 220,000 workers 
 employed in the industry, 17s. 8d. which would otherwise be avail- 
 able to them, after paying the same amount to capital as was done 
 in pre-war years. 
 
 Table III. 
 
 INCOME TAX AND EXCESS PROFITS DUTY. 
 (Inland Revenue Reports.) 
 
 The following two tables show (1) The gross amount of 
 income brought under review of the Inland Revenue Department 
 for Income Tax purposes, derived from profits from businesses, 
 professions, employments, etc., assessed under Schedule D., and 
 (2) the net amount received in payment for Excess Profits Duty 
 by the Exchequer. 
 
 Year. 
 
 (1) 
 
 (2) 
 
 1913-14 
 1914-15 
 1915-16 
 
 
 £ 
 670,633,544 
 724,488,365 
 732,348,140 
 
 £ 
 187,846 
 
 1916-17 
 1917-18 
 1918-19 
 1919-20 
 
 792,705,973 
 
 891,029,895 
 
 1,039,123,827 
 
 weekly wage earners.* 
 
 205,577,990 
 
 394,204,296 
 
 590,827,226 
 
 not available. 
 
 186,826,296 
 202,141,913 
 261,610,996 
 283,772,206 
 
 In 1913-14 the Inland Revenue carried out an investigation 
 into the sources from which the gross amount of income given 
 in (1) was derived. This resulted in the conclusion that 
 £349,064,175, in that year was derived from the income of public 
 companies. Now let us suppose that the income of these pubhc 
 companies had increased in the same proportion to the total in 
 
 • The income of "weekly wage earners " was not giv^n separately until 1916-17.
 
 APPENDIX ni.— PROFITS. 99 
 
 1918-19 ; this is a very modest assumption in view of the results 
 shown by other tables in this appendix. But even on this 
 conservative basis we get the following result. 
 
 Gross Profits assessed for Income Tax purposes derived from 
 public companies were : — 
 
 £ 
 
 1913-14 349,064,175 
 
 1918-19 857,329,449 
 
 But as any payment in respect of Excess Profits Duty can be 
 deducted as an expense when making up assessments of income 
 for income tax purposes the nett amount of Excess Profits 
 Duty paid into the Exchequer in 1918-19 can be added to this 
 figure resulting in a grand total of £1,118,940,445. This will 
 produce an estimate of a 221 per cent, increase in the profits of 
 companies in 1918-19 as compared with 1913-14. This estimate 
 can only be regarded as a rough indication of the true increased 
 prosperity of firms during the war, but it is sufiiciently indicative 
 to provide a basis on which to estimate this increase. 
 
 This rough estimate is supported to some extent by the report 
 of the Inland Revenue Authorities for 1920 on the Excess Profits 
 Duty. After giving a table which they have estimated to be the 
 True Excess Profits arising in each year as follows : — 
 
 Accounting Periods ending in 
 tlie period or year. 
 
 Approximate True 
 Excess Profits. 
 
 6th August, 1914, to 31st March, 1917 
 Year to 31st March, 1918 
 Year to 31st March, 1919 
 Year to 31st March, 1920 
 
 £600,000,000* 
 £420,000,000 
 £460,000,000 
 £500,000,000t 
 
 They then proceed to remark. 
 
 " In the absence of comprehensive statistics of the Excess 
 Profits Duty, it is not possible to state the corresponding aggregate 
 amounts of the " standards " over which the above sums consti- 
 tuted the excess taxable to the duty. A sample investigation, 
 however, indicates that for accounting periods ended in the year 
 1918-19 the aggregate amount of the standards for concerns 
 assessed to the duty fell between £225,000,000 and £300,000,000." 
 
 Now, on the basis of this estimate of the " standards " which 
 may be taken as a conservative figure for the pre-war profit, we 
 can estimate the increase in profit for 1918-19. Thus taking 
 the mean of the two figures for the " standards " supplied, 
 £262,600,000, and taking the figure for 1918-19 of the true 
 excess profits given in the table above we get an increase of 175 
 per cent. This increase though less than the one given above, 
 goes to prove that the profits made by companies and firms 
 were even in 1918-19 very inflated indeed. 
 
 * No subdivision of this amount can be made, 
 t Subject to revision.
 
 100 
 
 WAGES, PRICES AJSTD PROFITS. 
 
 
 Table IV. 
 
 
 
 
 SHARE PRICES. 
 
 
 
 
 (Share Price Lists.) 
 
 
 
 
 
 Par value 
 
 Highest 1 
 
 Highest 
 
 Percentage 
 
 Industry and Firm. 
 
 of share. 
 
 price, 1913 
 
 price 
 
 Increase 
 
 
 
 
 since 
 
 1913. 
 
 since 1913. 
 
 Chemical and Misceilaneout : 
 
 
 
 
 
 
 Assam Oil 
 
 £1 
 
 15/- 
 
 66/3 
 
 (1919) 
 
 342 
 
 Bryant & May 
 
 £1 
 
 21/3 
 
 60/3 
 
 (1918) 
 
 182 
 
 Burmah Oil 
 
 £1 
 
 £3f| 
 
 £221 
 
 (1920) 
 
 468 
 
 Shell Transport and Trading . . 
 
 £1 
 
 £5}i- 
 
 £14 iJ 
 
 (1920) 
 
 145 
 
 Clothing and Distribution : 
 
 
 
 
 
 
 Courtaulds 
 
 £1 
 
 27/6 
 
 66/- 
 
 (1920) 
 
 140 
 
 Jeremiah Rotherham 
 
 £1 
 
 37/- 
 
 £15i 
 
 (1919) 
 
 731 
 
 Coal : 
 
 
 
 
 
 
 Cory (Wm.) & Son 
 
 £1 
 
 28 /U 
 
 78/9 
 
 (1920) 
 
 180 
 
 Lambert Bros. 
 
 £1 
 
 24/9 
 
 68/1 
 
 (1920) 
 
 175 
 
 Tredegar Iron and Coal 
 
 £1 
 
 23/9 
 
 39/9 
 
 (1918) 
 
 67 
 
 Weardale Steel, Coal and 
 
 
 
 
 
 
 Coke 
 
 £1 
 
 21/- 
 
 36/6 
 
 (1918) 
 
 74 
 
 XngiTieering, Iron and Steel : 
 
 
 
 
 
 
 Baldwins 
 
 £1 
 
 21/9 
 
 60/- 
 
 (1918) 
 
 182 
 
 Barrow Haematite 
 
 £4.10. 
 
 28 /U 
 
 £5 
 
 (1919) 
 
 256 
 
 Guest, Keen & Nettlefold 
 
 £1 
 
 68/9 
 
 £7 
 
 (1919) 
 
 104 
 
 Hadflelds 
 
 £1 
 
 64/6 
 
 £8i 
 
 (1920) 
 
 134 
 
 Howard & Bullough 
 
 £1 
 
 52/6 
 
 £5 
 
 (1920) 
 
 90 
 
 Mather & Piatt 
 
 £1 
 
 46/- 
 
 81/6 
 
 (1920) 
 
 77 
 
 North British Locomotive 
 
 £1 
 
 29/6 
 
 56/- 
 
 (1920) 
 
 90 
 
 Food, Drink and Tobacco : 
 
 
 
 
 
 
 Baker (Albert) 
 
 £1 
 
 13/9 
 
 29 /7i (1920) 
 
 115 
 
 British-American Tobacco 
 
 £1 
 
 £5j;. 
 
 £8i 
 
 (1920) 
 
 62 
 
 British Oil and Cake Mills 
 
 £1 
 
 15/3 
 
 57/6 
 
 (1920) 
 
 277 
 
 Carreras 
 
 £1 
 
 27/9 
 
 40/- 
 
 (1920) 
 
 44 
 
 Liptons 
 
 £1 
 
 20/9 
 
 36/9 
 
 (1920) 
 
 77 
 
 Threlfalls Brewery 
 
 £1 
 
 28/- 
 
 71/3 
 
 (1920) 
 
 155 
 
 Shipping : 
 
 
 
 
 
 
 Clan Line 
 
 £10 
 
 £13i 
 
 £55 
 
 (1918) 
 
 300 
 
 Furness, Withy 
 
 £1 
 
 34/3 
 
 £6,^, 
 
 (1919) 
 
 258 
 
 P. & 0. 
 
 £100 
 
 £350 
 
 £766 
 
 (1919) 
 
 100 
 
 Royal Mail Steam Packet 
 Textiles : 
 
 Ashton Bros. 
 
 £100 
 
 £143 
 
 £228 
 
 (1920) 
 
 59 
 
 £10 
 
 £19 
 
 £62i 
 
 (1920) 
 
 229 
 
 Bleachers Association 
 
 £1 
 
 20/- 
 
 58/- 
 
 (1920) 
 
 190 
 
 English Sewing Cotton 
 
 £1 
 
 42/6 
 
 £6i 
 
 (1920) 
 
 188 
 
 English Velvet and Cord 
 
 
 
 
 
 
 Dyers 
 
 £1 
 
 23 /7i 
 
 50/- 
 
 (1920) 
 
 112 
 
 Fine Cotton Spinners 
 
 £1 
 
 36/3 
 
 £7 
 
 (1920) 
 
 286 
 
 Linen Thread 
 
 £1 
 
 44/6 
 
 81/10 (1920) 
 
 84 
 
 This table gives an indication of the enormously increased 
 prosperity to which companies attained during and after the war. 
 It must be remembered, of course, that some of these maximum 
 figures may be what are called fancy prices — prices to which the 
 shares are forced up in expectation of good dividend announce- 
 ments or bonus share issues. But this is no way prevents a specu- 
 lator profiting by these expectations and thus pocketing a cash 
 profit for himself. On the other hand, it is the case that after 
 payment of bonus shares as pointed out in the chapter on War 
 Profits (Section 1, " Share Prices.") the price of each share is not a 
 true indication of the profits which can be obtained. Thus in the 
 case of William Cory & Son, this company distributed a bonus in 
 April, 1919, of two new shares for every one held. Accordingly 
 the " true " highest price in 1920 would not be £3 13s. 9d., but 
 £5 18s. l|d., and the increase over the highest price in 1913 would 
 not be 180 per cent, but 320 per cent.
 
 APPENDIX III.— PROFITS. 
 
 101 
 
 Tablk V. 
 
 DEPOSITS, ETC., OF PUBLIC JOINT STOCK BANKS 
 
 IN ENGLAND AND WALKS. 
 
 {Economist.) 
 
 
 No. of 
 
 No. of 
 
 
 
 Ye»r. 
 
 Banks. 
 
 Branches. 
 
 Capital and Reserves. 
 
 Deposits. 
 
 191S 
 
 43 
 
 5,797 
 
 £ 
 82,068,000 
 
 £ 
 809,352,000 
 
 1914 
 
 38 
 
 5,869 
 
 81,904,000 
 
 895,561,000 
 
 1915 
 
 37 
 
 6,027 
 
 81,731,000 
 
 992,555,000 
 
 1916 
 
 85 
 
 5,993 
 
 81,089,000 
 
 1,154,877,000 
 
 1917 
 
 34 
 
 6,004 
 
 84,475,000 
 
 1,365,297,000 
 
 1918 
 
 26 
 
 6,28.5 
 
 92.902,000 
 
 1,583,412,000 
 
 1919 
 
 21 
 
 6,298 
 
 106,273,000 
 
 1,874,184,000 
 
 1920 
 
 20 
 
 7,257 
 
 128,154,000 
 
 1,961,527,000 
 
 From this table can be gathered not only the reduction in the 
 number of banks since 1913 by means of a process of amalgamation 
 the reduction being by more than a half — but also the inflation in 
 money indicated by the deposits column which had risen from less 
 than £809,000,000 in 1913 to £1,961,000,000 in 1920, or an increase 
 of 142 per cent. 
 
 It is noticeable that in 1920 from the table given below by far 
 the larger proportion of branches, capital and deposits are 
 accounted for by the group of banks known as the Big Five ; in 
 fact their deposits account for roughly 83 per cent, of the total 
 of the twenty remaining banks. 
 
 
 No. of 
 
 Capital and 
 
 
 Name of Bank. 
 
 Branches. 
 
 Reserves. 
 
 Deposits. 
 
 Barclays Bank 
 
 1,510 
 
 £ 
 
 23,842.000 
 
 £ 
 327,788,000 
 
 Lloyds Bank 
 
 1,530 
 
 24,138,000 
 
 345,029,000 
 
 London, County Westniinster and 
 
 
 
 
 Parrs Bank . . 
 
 828 
 
 17,507,000 
 
 305,381,000 
 
 London Joint City and Midland 
 
 
 
 
 Bank 
 
 1,489 
 
 21,720,000 
 
 371,842,000 
 
 National Provincial and Union 
 
 
 
 
 Bank of England . . 
 
 648 
 
 18,187,000 
 
 278,335,000 
 
 Total 
 
 6,005 
 
 £105,394,000 
 
 £1,628,375,000 
 
 Table VI. 
 
 NUMBER AND NOMINAL CAPITAL OF NEW COaiPANIES REGISTERED 
 IN ENGLAND, SCOTLAND AND WALES. 
 (Board of Trade Returns.) 
 
 Year. 
 
 No. of Companies. 
 
 Nominal Capital. 
 
 1913 
 
 7,425 
 
 £ 
 
 157,186,653 
 
 1914 
 
 6,214* 
 
 118, 251, .583 
 
 1916 
 
 4,062 
 
 53,354,606 
 
 1916 
 
 3,393 
 
 50,442,871 
 
 1917 
 
 3,963 
 
 67,813,926 
 
 1918 
 
 3,504 
 
 127,879,495 
 
 1919 
 
 10,725* 
 
 412.967,204 
 
 1920 
 
 11,011 
 
 598,189,032 
 
 * 5,386 of these in 1914, and 9,709 in 1919 were private companiea.
 
 102 
 
 WAGES, PRICES AKB PROFITS. 
 
 The foregoing table, compiled from Board of Trade Returns is 
 important because it gives an indication of the expectation of 
 " Capital " in each year. The increase in 1920 from the last full 
 pre-war year is very great amounting to roughly 277 per cent. 
 
 Table VII. 
 
 NUMBER AND PAID UP CAPITAL OF COMPANIES ON THE REOISTEK 
 
 IN ENGLAND, SCOTLAND AND WALES. 
 
 {Board of Trade Returns.) 
 
 Year ending 
 
 Number of Companies. 
 
 Paid-up Capital. 
 
 30th April, 
 
 1910 
 
 51,787 
 
 2,178,619,734 
 
 
 1911 
 
 63,707 
 
 2,222,293,974 
 
 
 1912 
 
 56,352 
 
 2,835,203,841 
 
 
 1918 
 
 60,754 
 
 2,425,740,857 
 
 
 1914 
 
 64,692 
 
 2,581,947,661 
 
 
 1915 
 
 65,986 
 
 2,657,466,964 
 
 
 1916 
 
 66,094 
 
 2,716,989,129 
 
 
 1917 
 
 66,131 
 
 2,737,733,134 
 
 
 1918 
 
 66,456 
 
 2,730,594,008 
 
 3l8t Dec, 
 
 1918 
 
 66,852 
 
 2,806,515,116 
 
 
 1919 
 
 73,341 
 
 3,083,086,049 
 
 This table is interesting because it shows that there was a 
 Considerably greater increase between the years 1918 and 1919 
 (the last available year) in the paid-up capital of companies than 
 in any two pre-war years from 1910 ; the statements of the Board 
 of Trade as to the proportion of public to private companies are 
 also very illuminating. To give them in tabular form we get the 
 following restdts : — 
 
 Year Ending 
 
 Private 
 Joint Stock Companies. 
 
 PubUc 
 Joint Stock Companies. 
 
 Number 
 
 Paid-up Capital. Number. 
 
 Paid-up Capital. 
 
 30th April, 1914 . . 
 
 47,574 
 73% 
 
 580,000,000 
 21% 
 
 17,118 
 27% 
 
 2,001,947,661 
 79% 
 
 31st Dec, 1918 . . 
 
 51,620 
 77% 
 
 680,000,000 * 
 
 21%* 
 
 15,232 
 23% 
 
 2,226,516,116* 
 
 79%* 
 
 From this it will be seen that though the institution of the 
 private company was only started in 1908 an increasing number of 
 small companies are taking advantage of this change in the law. 
 It is reasonable to suppose that is being done mainly because 
 private companies are exempted from publishing their balance 
 sheets. 
 
 Table VIII. 
 
 The Economist gives an annual review of the applications on 
 the London Stock Exchange for new capital made by public limited 
 companies, and for loans by British, Foreign and Colonial Govern- 
 ments. These figures have been analysed in the table given 
 opposite. 
 
 * Board of Trade estimates.
 
 APPENDIX III.— PROFITS. 
 
 103
 
 104 WAGES, PRICES AND PROFITS. 
 
 Thus for home sources the capital applications of industrial 
 companies amounted in 1913 to £35,031,200 while for 1920 they 
 amounted to £233,919,700, or an increase of no less than 568 per 
 cent. 
 
 This figure is startling even when it is noted that one of the 
 reasons for this huge increase is the decline in appHcations of 
 companies dealing in foreign and colonial markets. But the real 
 reason for this increase is, in spite of the fact that very few 
 additions to plant were made during the war and no new large 
 industrial enterprise was set on foot, such as the construction of a 
 railway, that at the end of the war the number of companies which 
 changed hands at grossly inflated values and the number of new 
 companies which were floated at these values was enormous. 
 For instance in the spinning section of the cotton industry com- 
 panies changed hands in 1919 and 1920 with the following results : 
 
 Total Number of Spinning Spindles 56,351,000 
 
 Known changes of ownership 23,832,000 or 42% 
 
 Sale price compared with old capitalisation 655% 
 
 New capitalisation compared with old 
 
 capitalisation 312% 
 
 New capitaHsation compared with sale price 47% 
 
 All these companies inflated their capital with the expecta- 
 tion of making the same percentage of profit on the inflated 
 value as on the old pre-war value of their businesses. 
 
 The analysis of Government borrowings is instructive in so 
 far as it gives an indication of the huge inflation which resulted 
 from these operations. Thus if a comparison is made in the 
 totals between 1913 and 1918 we get an increase of 609 per cent.
 
 APPENDIX IV. CHARTS.
 
 106 
 
 WAGES, PRICES AND PROFITS. 
 
 
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 108 
 
 WAGES, PRICES AND PROFITS 
 
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 S30VM ^v^a uvM-aad jo aevxNBOMBd
 
 The Labour Publishing Co., Ltd. 
 
 6, TAVISTOCK SQUARE, LONDON, W.C.L 
 
 THE DEFENCE OF TERRORISM 
 
 By L. TROTSKY Paper, 3/6 
 
 A reply to Karl Kautsky's " Terrorism and Com- 
 munism." With an introduction by H. N. Brailsford. 
 
 THE LABOUR INTERNATIONAL 
 HANDBOOK 12/6 
 
 Prepared by the Labour Research Department. 
 
 THE LAW RELATING TO TRADE 
 
 UNIONS 
 
 By HENRY H. SLESSER 5/- 
 
 THE FRUITS OF VICTORY By 
 
 NORMAN ANGELL 3/6 
 
 (Special cheap edition for the Labour Movement only). 
 
 PHYSICAL ECONOMICS 
 
 By L. SOUTHERNS Paper, 2/6 
 
 -^PPly for particulars of the Labour Monthly, the 
 
 Workers' Library, Labour Booklets, Workers' Control 
 
 Pamphlets, National Guilds Pamphlets, and other books 
 
 published by the Company.
 
 Headlet Brothers, . 
 
 Printers, 
 
 ASHFORD, Kent; 
 
 AND 18, Devonshire Street E.C.2.
 
 UNIVERSITY OF CALIFORNIA, LOS ANGELES 
 
 THE UNIVERSITY LIBRARY 
 
 This book is DUE on the last date stamped below 
 
 FEB 8 1946 
 
 FEB W 
 
 UNIVERSITY of GALIPORNIA 
 
 AT 
 
 LOS Ax^»GELES 
 
 LIBRARY
 
 UC SOUTHERN REGIONAL LIBRARY FACILITY 
 
 AA 000 901 
 
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