14 SEPTEMBER 1929, Page 5

The Coal Problem

TIME passes, and though the British coal-owners have come up to the fence which they must jump if they are to run their problem to earth, they are still searching round for a gate. We fear that if they go on in this way time may defeat them. As we go to press on Thursday, two important meetings are being held. One is that of the coal-owners who will consider the proposed scheme for the national marketing of coal ; the other is that of the Executive of the Miners' Federation who will discuss their next message to the Mining Association. Recently the Mining Association refused to discuss wages and hours with the Federation on the ground that it had no power to do so.

It is evident that the coal-owners have done what they could, within certain limits, to meet the wishes of the Board of Trade. The Board fixed October 15th as the date by which the owners' marketing scheme must be ready, and there is little doubt that the scheme will be presented by that date and that it would be capable of being put into operation by the New Year. That is good so far as it goes. But it is not enough.

Before we come to the wider needs, let us look at the scheme. It has been prepared by a sub-committee of the Central Coal Marketing Committee and allocates to each district a percentage of a national quota. Penalties will be imposed for over-production and compensation will be paid for under-production. As we said last week, it is proposed that the national quota shall be based on local estimates of what can probably be sold. But what is the use of all this, rapid though the progress has recently been, when hours and wages hang in the balance ? The Government have declared their intention of dealing with the miners' hours before the end of the year, and there is still no prospect of miners and owners coming together to discuss their differences. If the Mining Association has no power to discuss hours and wages, surely powers ought to be acquired. What we, as non-Socialists, are afraid of is that if the coal- owners do not prepare a comprehensive scheme and do not get their views represented, as they ought to do, in international counsels—for coal is now above all things an international problem—the Government may be forced into some act of nationalization.

At Geneva on Monday Mr. Graham, the President of the Board of Trade, pointed out that the old days of happy-go-lucky prosperity can never return to the coal trade. The Economic Committee of the League has made several practical proposals for an international organization. Mr. Graham himself urged the calling of a conference on the conditions of employment in the coal industry. That is an excellent idea, but it would be essential that the British coal industry in such a conference should speak with one voice. What is needed is an international remedy for an international problem.

Rationalization, together with all those replacements of coal by alternative forms of fuel and alternative forms of energy, has resulted in a wide margin of " surplus productive capacity." In other words, existing mines in Great Britain, Germany, and Poland (the chief coal-exporting countries) all produce less than they actually could—Great Britain nearly one-third less, Germany about one-quarter, Poland about one-half. The minor coal-producing countries, Spain, Rumania, Greece, and Bulgaria, desperately try to tinker them- selves into safety by import duties. The League Economic Committee has at least proposed definite remedies. It is suggested that there should be (1) a special International Committee representing all coal- producing countries, (2) international agreements to alleviate competition, (3) an entente in regard to hours, wages, and conditions of employment. The most hopeful line of advance is quite plain. But it is essential, if we are to follow that line, that the British coal industry should be ready to present a prominent and undivided policy in the international discussions.