INDEBTEDNESS.

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month. In a few instances interest is charged. Advances are sometimes
 given systematically on a particular day and may represent a substantial
 fraction of the monthly wage. Such cases represent an approximation
 to a system of half-monthly payment, and the position of the
worker is made easier. In most establishments, however, no advances or
only very small advances are granted.

Attitude of Labour,

While many employers are naturally opposed to proposals to
compel them to introduce a system which would involve extra trouble and
some extra expense, we believe that others would be ready to pay wages
by shorter periods if they were convinced that their workers wanted it.
When the Weekly Payments Bill was under discussion, the evidence of
opposition to change on the part of the operatives seems to have had a considerable
 influence, and we have directed some attention to this point. As
a result, itis not possible to indulge in any generalisation on the question.
The leaders of labour realise the possibilities which a shorter period offers,
but there cannot be said to be any widely voiced demand for change.
Indeed, whether the employer has paid monthly, half-monthly, fortnightly,
 weekly or daily, the workers have nearly always acquiesced,
and the majority are so heavily indebted that the gain which a
change of period might bring appears trifling when compared with the
possible inconvenience or danger, Thus in some branches of industry,
and especially on railways, particular privileges are apt to be accorded to
monthly-paid men and not to others. In such cases, the proposal to
reduce the period naturally creates apprehension. With a few there is a
sense of prestige attaching to monthly payments, and in some cases the
system of advances goes far to overcome the disadvantages of monthly
payment. More potent with many, probably, is the fear of a disturbance
of relations with money-lenders, shopkeepers and landlords, who are naturally
 unwilling to alter their systems of accounts. Small groups of workers
Who can only pay their bills monthly, if paid fortnightly, may be placed
In a difficulty, and this is not likely to be overcome unless employers in
& particular centre or Government enforce a change in respect of large
humbers of workers. The introduction of a short period of payment,
like some of our other proposals may involve an addition to the
nominal or real rate of interest on the reduced sums that will be borrowed,
but here again we fall back on our main proposition regarding the danger
of credit. To give the money-lender greater security in respect of recoveries,
 e.g., by compelling all employers to collect his debts, would bring
down the interest rates, but it would be ruinous to the borrowers. We
wish to make the borrowing of substantial sums difficult, not easy. A
reduction of the period would enhance the difficulties of collecting debts
and would thus assist in securing that reduction in the worker’s capacity
to borrow which we believe to be of such fundamental importance.
Finally, in a number of cases, the opposition of the jobbers to a change
18 influential. These men, who are frequently money-lenders themselves
and sometimes act ag intermediaries n securing loans. and whose anxiety