engineering, shipping service, canal, river, dock and harbour service have also been seriously affected during the year.

Acute unemployment, affecting a smaller number of workers and more restricted areas, has been experienced also in the fishing industry. The degree of unemployment has, however, given rise to considerable distress in many of the fishing ports on the East Coast of Scotland and in some districts of the Highlands and Islands

PREVALENT VIEWS AS TO THE CAUSES OF UNEMPLOYMENT AND UNDER-EMPLOYMENT GENERALLY AND IN PARTICULAR EMPLOYMENTS.

To discuss the interaction of the various economic factors that have operated to cause the present serious depression in trade would be beyond our province, and we do not propose to do more than state the tenor of the opinions collected as to the main immediate causes of serious unemployment. There is almost complete unanimity as to the broad reasons for the depression, practically the only point at which the views diverge being on the vexed question of the introduction of tariffs to protect the home manufacturer against the effect of depreciated foreign currencies. Leaving this controversial question out of account, one or two main factors stand out prominently as contributing towards the unhealthy condition in which the nation's trade now finds itself.

Briefly stated, the first is the impoverishment of most of the European nations and the dislocation of European markets as a result of the war. The instability of some of the foreign exchanges, the complete collapse of the credit of countries formerly among our best customers, and, bound up with this, the doubt as to the future of Germany and Russia, all rendered trading operations extremely difficult. Manufacturers would obviously be unwilling to take the grave risks associated with foreign trade in such circumstances.

The second is the over-production of goods and the scramble after profits during the two "boom" years following the armistice. During these years a speculative activity in many trades served to conceal the national impoverishment due to the war, and to postpone artificially the operation of economic laws.

The third main cause is the uncertainty that existed as to the course of price movements. When the bubble of speculation and over-production was pricked and the highly-coloured visions of universal prosperity vanished, prices naturally fell in accordance with the ordinary law of supply and demand. With prices fell wages, though unevenly in the various industries. It is clear that in such conditions, with manufacturers unable to estimate the future movements in the costs of production, grave risk was attached to manufacturing for stock, and accordingly practically nothing was produced except for immediate requirements. For the same reason new enterprises were not undertaken.

These three causes appear to be generally regarded as being the most important factors in the situation viewed as a whole, though when particular industries are considered other causes of varying importance reveal themselves. These we deal with below under the different industries.

Before leaving the general question we may mention that many

employers of labour and others expressed to our officers the widelyheld view that there could be no solution of the present problem unless wages, which it is admitted have already suffered considerable reductions, are still further reduced, or unless for the present wage a longer working day is imposed, so as to enable costs to be reduced to a point where effective competition with the foreign manufacturer is economically possible. The reply of the wage-earners is, of course, that so long as prices remain at their present high level, there is little available margin for a reduction that would still leave them with sufficient for the maintenance of health. We do not intend to discuss the difficult question of the inter-relation between wages and prices or whether a fall in wages must precede a fall in prices, beyond stating that it seems unfortunate that no scheme appears to be possible for ensuring that, even approximately, price and wage movements over the whole field of industry would be coincident. It seems, however, to be worthy of consideration whether further reduction of wages in certain industries without a corresponding reduction in the general level of food prices would bring workers with large families very near the point at which an adequate supply of the necessaries of maintenance cannot be procured.

Coming now to the special causes of unemployment as affecting particular industries, we summarise below the information obtained by our officers in regard to those industries in which unemployment is severe :

Shipbuilding. The shipbuilding industry naturally reflects the general commercial condition. So long as there is a depression in world trade the demand for new ships will be less than normal. Apart from this obvious reason for the depressed state of this industry, there seems to be general agreement that British manufacturers are handicapped by the low wages paid in Holland and in Germany, and that a contributory factor has been the sale of German merchant ships handed over by that country in terms of the Peace Treaty.

Some firms have hitherto been mainly engaged on the construction of battleships. The reduction of armaments has of course hit these firms very severely.

On the east coast the depression in the fishing industry has caused a considerable diminution in the number of new trawlers built.

In addition to the general causes operating, it remains to be mentioned that the boilermakers' dispute, which continued for about seven months in 1923, was responsible for holding up work on new' ships, and for diverting to Continental ports a certain amount of repair work.

Engineering. The condition of this industry is also dependent on the state of trade generally. Marine engineering represents a considerable proportion of the whole, and the shipbuilding depression has been reflected by serious unemployment in this branch. In other branches of the industry the position has perhaps not been quite so acute.

The Clyde area appears to have suffered most, so far as this

industry is concerned, owing to the interdependence with the shipping industry.

Apart from the causes of unemployment common to all industries, a number of subsidiary causes, some applicable only to certain branches of the industry, were mentioned. Amongst these were the following:

(a) The political situation in Central Europe.

(b) The disposal after the war of surplus war material.

(c) The introduction by employers of labour-saving devices.
(d) The loss of Asiatic markets during the war. It is stated
that the markets then lost have been captured by America,.
and that British manufacturers will find it difficult to
regain a footing.

(e) High transport charges.

Some of the workers' representatives seen by our officers alleged as a contributory factor in the depressed state of the industry that in certain cases employers had not kept their machinery up to date, and that in consequence they were unable to produce machinery suited to present-day requirements.

Further, according to the statements of trade union officials, it would appear that the figures of unemployment in this industry do not properly represent the trade position, as even in the normal condition of the industry it is unlikely to be able to absorb many dilutees brought in during the war and now classed as skilled engineers.

Steel and Iron Trades.-In general the causes of unemployment in this industry correspond with those in the engineering industry, though greater or less stress is laid on the foreign competition factor according as the person interviewed was engaged in the manufacture of steel itself or in the manufacture of steel products.

Textiles, Woollens, Hosiery, etc.-It was stated to our officers by manufacturers that before the war a great part of the country's cloth goods went to European countries, but that now in these countries, notably Belgium, manufacturers had so improved the quality of their goods that not only were they independent of this country, but they were able to compete with British manufacturers for contracts for this country. It was alleged that the Scandinavian trade had been captured by Germany, and that only because Scottish manufacturers lead in novelty of design and colour is any foreign trade kept.

In regard to hosiery, etc., the loss of foreign markets and the competition of foreign manufacturers was emphasised. The section of the industry engaged in the manufacture of fancy goods for ladies and for sports wear was stated, however, to be in a flourishing condition.

Fishing Industry.-This industry appears to have been particularly unfortunate, as not only have the general causes of unemployment had their full effect on the industry, but for some unexplained reason it has not been possible to locate herrings in such large quantities as formerly, and accordingly the catches have been small. Added to the dislocation of the European markets and to the difficulties caused

The

by the high cost of fuel, fishing gear and nets, the fishermen have had an unfortunate experience. Financial inability to replace damaged gear or nets has caused boats to be withdrawn from the fleets and has thrown the crews into the ranks of the unemployed. depression has naturally extended to the shore hands (women fishworkers, coopers, carters, etc.), and for these workers it has been accentuated by the endeavour of unemployed fishermen to obtain shore employment.

Printing and Papermaking.-Papermaking is said to have been adversely affected by German competition.

In regard to the printing trades, it is stated that unemployment is due mainly to the introduction of improved plant, viz., mechanical typesetters, though there is some falling off in orders for the printing of books for foreign publication.

EFFECTS ON THE PHYSICAL WELFARE OF THE POPULATION.

(This section should be read in conjunction with other parts of our Report dealing with statistics as to sickness benefits, infectious diseases, infantile mortality, etc.)

Enquiry was made on this point by our medical officers, who collected the opinions of medical officers of health, school medical officers, tuberculosis officers, health visitors, etc. The opinions given were mainly the result of impressions obtained in attending patients at home or in hospitals or clinics, but for Glasgow and a few other areas statistical information was obtained showing the results of examinations of school children over a series of years, height, weight and nutrition tables being available.

The medical evidence confirms the opinion formed by lay observers that the public measures taken for the relief of unemployment have prevented any widespread physical distress. In this respect the position has been much more satisfactory than in previous severe trade depressions, when the unskilled and the casual worker, who become immediately affected by a falling off in trade, often suffered acute physical distress and privation because of the lack of co-ordinated efforts to provide relief. Even in times of normal trading activity, the casual worker, with his uncertain income and his generally improvident habits, experiences periods during which he is hardly able to obtain for his family the minimum of nourishment necessary for the preservation of health. In the present depression the unemployed of this class have had available for them, in common with other classes of unemployed, a regular weekly income sufficient to enable an adequate supply of necessaries to be procured. Nearly all the opinions obtained from medical sources refer, as an outstanding feature of the situation, to the improvement in physical condition resulting from this regularity of income.

Relatively the effects of unemployment, as might have been supposed, have fallen much more heavily on the skilled and the

The term "nutrition" includes consideration not only of growth as indicated by height and weight, but also of muscular tone, colour of mucous membranes, condition of hair, nails and skin, brightness and alertness, and signs of acute and chronic diseases.

N

artisan classes. There is always a greater reluctance amongst these classes to apply for poor relief. In a small minority the desire to avoid the "taint of pauperism," until compelled by sheer necessity to resort to the poor law, must have caused at least some temporary deterioration in physical condition.

While it seems clear that the assistance available from public funds has normally been sufficient to prevent undernourishment, distinct signs of nervous strain have been noted. The husband becomes depressed on account of the apparent hopelessness of the position, and the wife, anxious for her husband and faced with the task of "making ends meet," is similarly affected. Even where the strain does not produce a feeling of absolute discouragement and bitterness so acute as to result in a resolution to "let things drift," it is obvious that the atmosphere is not very suitable for the children. Two of our medical officers undertook a rapid survey of the health of children in the Clyde Valley.

In regard to children under school age their general conclusion was in the following terms:

"Summing up the position as a whole with regard to the physical condition of mothers and children in the three areas in which we have been able to make enquiry in the time at our disposal, it seems that, among the class of mother that attends the child welfare centres there is a lower standard of health and less satisfactory clothing than in former years. Children under 1 year do not appear to have suffered. In Glasgow and Paisley the children between 1 and 5 are apparently less well nourished and clothed than in previous years, but in Lanarkshire and, so far as we could ascertain, in Renfrewshire (exclusive of Paisley) they do not appear to have suffered to any appreciable degree.

In regard to children of school age, our medical officers compiled from the Annual Reports of the School Medical Officers of Glasgow, Lanarkshire, Renfrewshire and Dumbartonshire a series of tables showing the average heights and weights in selected age groups, the standard of nutrition, the condition of clothing, etc. The tables provide a fairly reliable basis of comparison from year to year of a number of conditions which might be taken to indicate, directly or indirectly, the general standard of physical well-being in the school child population.

The following is a summary of the tables:

(A) Glasgow.

Those

(1) Weights.-Boys aged 5, 6 and 13 in 1920 were on the average slightly heavier than those in the same age-group in 1923. aged 9 were a little lighter. The figures are as follows:

Boys aged 5 were 0.2 lb. heavier in 1920.

Girls aged 5 and 13 in 1920 were heavier than those in the same