THE MINING CRISIS
ASTRIKE or lock-out in the coal mining industry is too bad to happen—that is almost the only reason for optimism in the present gloom. Fortunately it is a substantial reason. Are we to believe that when this country is threatened, not merely with a temporary acute depression, but with the permanent decline or even collapse of its industries, either side in the present dispute will be so mad to play fast and loose with the future ? For the coal mining industry is the traditional source of our energy and wealth. Even those miners who are most hotheaded and most ignorant are very good fellows. They are not fundamentally unreasonable and they have a sense of fairness. No man who has come into personal contact with miners—they may be described as the most hereditary workers in England— can have anything but a deep respect for their qualities. Besides, we are convinced that a better understanding of the economic facts of international trade, and of coal mining in particular, has spread among the miners, partly as the result of the disastrous coal strike of 1921 and partly as the result of a commendable spirit of inquiry which has been noticeable since the War. The mine owners acknowledge that in some of the colliery districts the wages ought to be raised rather than reduced— this as a matter of justice and humanity rather than as a formal admission that the mining industry, which is in a disastrous state, can afford to pay more. If the Mining Association lays rather more stress, as it is believed to do, on the reduction of wages than on the increase of hours, it is because any increase of hours would require legislation. Really we suspect that both sides, having become accustomed to Government intervention, have talked heroically of not budging an inch from their present positions because they wanted above all things to call attention to their terrible straits. Yet if the mines should shut down both owners and miners would suffer a blow from which they would take years to recover. Railway freights would rush up, shipping would be staggered—the greatest industries which everyone is trying to coax back into vitality would dwindle into decay.
The facts are enough to appal even an habitual optimist, and it is not to be wondered at that both sides can prove all that they wish from the dismal catalogue of failures and disappointments. The number of unemployed in the mines is now 300,000 and it is fast rising. One- third of the coal got last year was raised at a considerable loss. This year South Wales, Scotland, Northumberland, and Durham have all been losers. Even the Eastern coalfield which has always been profitable finds that its profits arc steadily dropping down to a regular loss. The pleasant dreams of permanent prosperity which were dreamed when British coal was being exported at high prices to France and Italy have faded away. On the Continent oil is replacing coal as a source of power and where that has not happened water-power has often been introduced. Then, the European coal- fields arc being worked more actively than ever before. Wages are lower and hours longer than here and the German mines under the German financial reconstruction have got rid of their debts on ridiculously easy terms. The Board of Trade figures for March show that 320 British collieries made a loss and only 291 a profit. In the past year 500 British pits have been closed. Ships all over the world are adapting themselves to the use of oil instead of coal and a strike or lock-out would simply mean that that process would be accelerated. When a pit which has been working on a very narrow margin of profit—and still more so if it has been working temporarily at a loss—is closed owing to a dispute, it is likely never to reopen. Every strike means that there is less work for men to go back to at the end of the strike than there was before.
One satisfactory thing about the coal mining industry is that employers and employed now have a better apparatus for coming into contact and talking over their difference's than is possessed by any other industry except, perhaps, the cotton industry. The agreement of 1921 and the agreement of 1924 were really remarkable arrangements. In 1921 a novel principle was intro- duced. It was agreed that the proceeds of the industry were to be shared in fixed proportions between owners and miners in such a way that the profits depended upon the amount of wages paid. The miners were to have 83 per cent, and the owners 17 per cent. There was to be a periodic joint audit so that the accounts were exposed for the inspection of the miners' repre- sentatives. At the same time it was agreed that there should be a minimum wage, reached by adding 20 per cent, or more to the standard wage, plus a subsistence allowance to "low paid workers." This agreement was applied not to individual collieries but to whole districts and was administered by District Boards and a National Board. In January, 1924, the Miners' Federation announced its intention of terminating this agreement. Fresh negotiations with the Mining Association then took place, during which the miners, very mistakenly we think, tried to abandon the principle of sharing and to revert to the old principle of a living wage. In fine, they demanded 2s. a shift more than had been received in 1914 in spite of the reduction of hours. The Court of Inquiry which had been szA up announced in effect that the men had a grievance, but that they were nevertheless demanding more than the profits of the industry justified. In the end owners and miners accepted the recommendation of the Court that they should resume their direct negotiations, and they made a new agreement in June, 1924. In this agreement the principle of sharing was retained, but the standard profits were now to be 15 per cent. instead of 17 per cent. ; and of the surplus profits 88 instead of 83 per cent. was to go to the men. The minimum wage was raised from 20 per cent. to 331 per cent. above the standard rates. That seemed to be a very good bargain for the men, and so it would have been had not the bottom fallen out of the whole industry for the reasons which we have already enumerated.
It is clear to us that coal in its naked form is being less used than it was, and that European competition being what it is there is no future for our coal mines on the old lines. The old haunting dread of our fathers that the coal supply of Great Britain would give out has been made grotesque by the changes of time. There is plenty of coal still in the ground, but it does not pay to sell much of it in its natural form. How mad, how ridiculous, in the light of this fact are the threats of Mr. A. J. Cook that he will create a new alliance of Unions—something much vaster than the old Triple Alliance and perhaps even with international backing— to fight the owners for better wages and shorter hours ! The royalty-owner is still a target for his abuse, but a royalty-owner who gets 6d. a ton on the retail price of coal thinks himself lucky indeed. Royalties are really a drop in the ocean of mining finance ; and it must be remembered that originally the royalty-owner accepted a low rent for his coal-bearing land in the speculative hope of making a considerable income out of royalties. As things have turned out he would have done better to forswear the royalties and accept a rather higher rent. The adventurous principle of "No results, no money" has been a very disappointing one for him.
The point still at issue when we write this article, whether the owners shall or shall not withdraw their notice terminating the agreement of 1924, is a matter of no moment at all compared with the question how the mines are to be reconstructed. It is absurd to go on talking about oil as a permanent rival to coal when it is known that oil can be produced from coal. Coal is oil in another form and much else besides. It is equally absurd to throw up one's hands in despair about the cost of conveying coal when it is admitted that coal can be turned into energy on the spot.
The mines must be so organized as to provide cheap electrical power for industry and also to make or save money by the by-products obtained in the process of conversion and incidentally by the saving of overhead charges. Let the owners and miners take their courage in both hands and agree upon a bold reconstruction. If a Government grant or Government credit is shown to be necessary it must not be withheld. In any case the Government will take the responsibility for the great generating stations. There is only one way to save the mining industry. Yet it has to be saved.
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