we meet with in France is a cheap mode of living, which is quite 
another consideration . 
It 18 clear for instance that in a climate where little or no 
heating is required, where rope-shoes can be used instead of 
much more expensive leather boots or shoes, and less and lighter 
slothing is worn, less money needs to be spent in such ways. 
It is a different kind of living rather than a lower kind. 
And it is useless to expect that such differences will be much 
altered either by international agreement, by trade unions or by 
treaties at Geneva or elsewhere. We have to reckon that in this 
country climate and habits will at all times cause a mode of living 
tosting more in cash than in some countries which now compete 
severely with us in industrial products. 
But it is the difference in wages paid in cash, rather tha the 
difference in what wages will buy which ‘adds fo e foes is part 
goods. For the cash paid in wages and in socia servic a 
of the cost of the goods and has to be repaid by thos 
we sell, 
CAUSES OF HIGH COSTS. 
In general it evidently is true that our prices are generally 
b0-day too hich to enable us to compete successfully. 
_ There are some causes of high costs of production which affect 
British industries generally, and some which affect one and not 
another, or one more than another. 
._ But there are some general and national causes of high costs 
in industry at which it will be useful to look. 
Among these are Wages ; Taxation ; Local Rates ; Trade Union 
Restrictions ; Difficulties or costs caused by legislation. 
LT 
> =mION. 
It is not possible to enquire into the effects of taxation without 
baking into consideration the reasons why it is imposed. It is not 
proposed to deal here with the National Debt, of which by far the 
greatest part represents money borrowed during the war. The 
interest has to be paid by the taxpayer. It may be possible to 
pay off some of the money borrowed with money borrowed at a 
sheaper rate—that is by * Conversion Loans ”—but the prospect