and property, The former usually included 
wages and salavies and the latter rent, in- 
terest and profits. Can trade union action 
increase the proportion that goes to wages? 
Is there a surplus kept back for property 
that might be shared by workers? These 
are questions which cannot be answered 
categorically either in theory or in fact, 
but the published evidence is fairly eon- 
clusive upon two points. 
(i) Changes in the proportion have not 
been of great magnitude in the past, Work 
fias maintained its share despite the in- 
creased amount of capital used in industry. 
It is possible, therefore, that trade union 
action has improved the position of the 
workers without reducing the absolute 
amount going to property. But the fairly 
constant percentage going to work sug 
gests that there are very definite limita 
tions to action directed,at increasing the 
share of the existing fund received by 
work. 
(ii) When the amount of saving and 
taxation is deducted from the share going 
to property the surplus available for distri 
bution among the lower income groups is 
very limited. From this it follows that a 
substantial increase in the share going to 
work would be dependent upon a considers 
able part of this being saved or made avails 
able for taxation. ‘his would certainly 
improve the economic position of workers, 
even though it implies that the amount 
spent on consumption goods could not be 
greatly increased. 
These conclusions are based upon a care: 
ful examination of the extensive data pubs 
lished upon the national income of Great 
Britain, the United States and Australia. 
Space forbids detailed reference to these 
data, but it may be paid that the con: 
clusions outlined appl with great force 
to Australian conditions. They indicate 
that the dispute concerning the distribu- 
tion between work and property should 
Play less part in industrial relations, un- 
ess definite provision is made for saving 
in the event of more of the national in- 
come being. allotted to work. 
Promise of Present Developments. 
3. Nevertheless, it ‘should be a matter 
of gratification that there can be discern: 
ed in recent developments in industrial 
organisation not only the possibilities of 
increased command over income from pro- 
perty among those mainly dependent upon 
income from work, but also an advance 
in the absolute shares available to the 
categories both of property and work. The 
close observer of such developments is 
well aware of their significant promise 
in these directions. Among these develop- 
ments are the {ollowing:— 
(i) Scientific business administration,’ 
(ii) employce representation, through 
works councils. committees and the 
Jike, in manage nent, 
1 4 = y ® i 
Our Industrial Problem3, 
(iit) the application of industrial psyehd 
logy, 
(iv) the spread of stock ownership, 
(v) the sharing of net earnings with 
employees, 
(vi) the “rationalisation” of indusiry and 
efforts to eliminate unemployment, 
(vii) the stabilisation of prices through 
eentral banks. 
A note on each of these will serve {é 
indicate their importance, first in estab- 
lishing fuller understanding of the unity 
of all economic activity, and, secondly, in 
rendering the distribution of real income 
more equitable. 
(i) Scientific business administration im 
plies direction of industry and cominerce 
with such a conservation of resources and 
energy that the wasteful use of materials 
and human abilities is progressively elimin- 
ated. This is the undoubted tendency of 
dustrial leadership in many countries and, 
despite the relative conservatism of Aus 
tralian business men, signs are not wants 
ing of the rise of a class of scientifically 
minded business administrators in the 
Commonwealth, Ivery advance in this 
direction which does not overlook the 
claims of human personality to free selfs 
expression is a gain to the total divisible 
pet real income of the country. 
(ii) Employee representation in the man. 
agement of industry may be taken, despite 
easily discoverable features open to criticism 
from the employees themselves, as prima 
facie evidence of the new enlightenment 
affecting employers as a class. In many 
industries in this and other countries (not: 
ably Great Britain, Germany, the United 
States and Japan) councils and committees 
jointly representative of workers and man- 
agement have been set up for the purpose 
of dealing with employment relations and 
with the technical problems of the ine 
dustry. Like other specific proposals for 
promoting better industria! relations, these 
joint efforts at control have not always 
realised the rather estravagant hopes of 
their early sponsors. Where successful, 
they have at least opened the 
door to the solution of some of 
the problems of relative status 
of owners, directors and operatives, 
have provided a forum for mutual dig- 
cussion of the basis of income distribu 
tion in the particular business, and have 
provided actual, if limited, experiments 
in the democratisation of industry. Their 
success is dependent upon (a) free and 
adequate representation of the workers, 
(b) the encouragement of bold expression 
of opinion, (e) complete candour by the 
management, (d) limitation of powers in 
the first stages of their organisation, and 
(e) avoidance of usurpation of the funce 
tions of trade unions. 
(iii) The application of industrial psy- 
shology. broadly translated. is one scien 
lific approach to an understanding of the 
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