WATER-POWER AND ELECTRIFICATION.

It is estimated that the supply of water-power in Sweden at "industrial mean water" (about nine months of the year) totals 6,750,000 h.p., and the development of this source of power has during the past few years engaged the very serious attention of the Swedish Government and industrialists. The difficulty in obtaining coal and the high prices which have had to be paid for this fuel in recent years has created an enormous incentive to progress in electrification schemes. Another important aspect is the electro-chemical industry, which is increasing year by year. There are already exported in considerable quantities calcium carbide, nitrolime, chlorates and perchlorates, sulphate of sodium and chloride of lime, and among electro-metallurgical products may be mentioned the following:-electro pig-iron, electro-steel, ferro-silicon, ferro-manganese, zinc and lead. Some of the largest power stations are at Trollhättan, which employs 13 large turbines, each 11,500 h.p., developing a total power of 104,000 kilowatts. The large power station at Porjus is built underground, as a protection against frost, the power being distributed to the Kiruna and Malmsberget mines of the Grängesberg Company and also employed for the electrified railway line from Gellivara to Riksgränsen. At present only 30 per cent. of the cultivated area of Sweden is electrified, and it was with a view to increasing the number of electric power installations that the Swedish Government granted to the Electric Power Construction Loan Fund " in 1918-19 Kr. 3,500,000, but it appears that applications for loans exceeding Kr. 17,000,000 were received by the administrators of this fund. The Government granted a further sum of Kr. 2,500,000 to the fund in 1920, and a further Kr. 1,500,000 has been earmarked for 1921. The authorities are petitioning for larger grants, inasmuch as it has not been possible up to the present to grant more than one-third of the applications under the scheme. The total production of electric energy at the State Power Stations during 1920 amounted to 740,000,000 kilowatt hours compared with 685,000,000 kilowatt hours in 1919, and the total income derived from all generating stations amounted to to about Kr. 15,070,000 compared with Kr. 12,370,000 in 1919.

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VII.—LABOUR CONDITIONS AND SOCIAL QUESTIONS. LABOUR CONDITIONS.

Labour conditions were very unsettled during 1920, and have hampered to a very considerable extent the progress of Swedish industries. This state of affairs is partly due to the Eight Hours Bill, which came into force on the 1st January, limiting the hours of work generally to 48 a week. It is estimated that the loss to Swedish industry from this law amounts to Kr. 150,000,000. The application of this measure has been so onerous, especially in the case of shipbuilding, where it has often prevented builders from undertaking urgent ship repairs, that many representations have been made urging the authorities to revise the law.

even

Strikes. Industrial strikes, however, constituted greater obstacle to progress. The most serious strike was that in the building trade, which began in April, on the question of working hours, and only ended on 20th November. Under the new agreement, working hours are fixed at 48 per week; building labourers in Stockholm will receive Kr. 2.40 per hour instead of Kr. 2.20, and unskilled labourers Kr. 2.20 instead of Kr. 2. Many strike threats have also had a depressing effect, principal among which may be cited the Private Railways, where the railway men petitioned for higher wages. This strike was only averted at the last moment by the men consenting that the case should be referred to a Court of Arbitration, whose decision has not yet been published. A strike for increased wages has been threatened by the Stockholm tramway employees, who are already receiving three times their pre-war wages. Swedish textile operatives have also initiated negotiations for a new agreement for the whole of Sweden, which agreement includes claims for higher wages. Owing, however, to the bad state of trade, arrangements have been made to prolong the old agreement which involves 24,000 hands, until 1st April, 1921. The timber and wood pulp trades have also been threatened with strikes, but every effort is being made to convince the men of the futility of increasing the cost of production by higher wage bills at a time when prices are falling. The provincial postmen also threatened to strike, but it appears to have been recognised that the rate of their remuneration left much to be desired, and the Postal Committee which was formed to investigate the matter has recommended an increase of 20 per cent. to 50 per cent. in the present rates, this decision to take effect from the beginning of 1921. A serious strike has still in progress. In

broken out among ships' engineers and is view of the prevailing low freight rates, it is unlikely that shipowners will agree to the demands for higher wages, and they are at present showing a firm front by laying up tonnage rather than run vessels at what in many cases would probably amount to a considerable loss. The result is that only some of the larger types of vessels are running, and these are being worked by labour recruited from among the technical staffs of the shipping offices, civil engineers and technical students.

The new movement inaugurated some time ago towards the so-called Industrial Democracy has been quietly progressing. " Preliminary conferences have been held by a Committee which was appointed to investigate the practicability of co-operation between employers and labour on matters such as the observance of labour laws, disputes, methods of working, and introduction of new machinery. It is possible that preliminary proposals as a basis for legislation will be introduced in the early part of 1921 It appears that the principle in virtue of which workmen should be allowed a certain interest in management has been agreed to by the Committee.

Some of the more enlightened workmen are beginning to realize the situation and, in some instances, have agreed to a

reduction of 20 per cent. One estimate of the increase of wages per hour since the outbreak of the war gives the rate as 200 per cent. for Sweden, compared with 300 per cent. in Norway, 275 per cent. in Denmark, and 75 per cent. in the United States of America. According to this calculation the increase of wages in Sweden has exceeded the increase in the cost of living, which was 171 per cent. on the 31st December.

Unemployment.-Unemployment became gradually serious towards the end of 1920, as is indicated in the latest official figures, which show that there were 155 applications for every 100 vacancies in November, compared with 110 in October, and 113 in November, 1919, whereas the percentage of unemployed workmen belonging to Trade Unions amounted to 43 per cent. on the 31st October compared with 29 per cent. on the 30th September, and 32 per cent. on the 31st October, 1919. It is estimated that at the middle of January there were 50,000 unemployed, of which 35,000 belong to Unions.

COST OF LIVING.

The cost of living in Sweden is officially based on the cost of food, lodging, lighting and heating, clothing, taxes and miscellaneous expenses. There has been a gradual rise in the cost of living since the 30th June, 1919, the percentage (compared with July, 1914) having risen from 157 per cent. to 181 per per cent. on the 30th September, 1920. It is satisfactory to note, however, that during the last quarter of 1920 the cost of living fell by 10 points, the final figures being 171 per cent. This is principally accounted for by the decrease in the price of coal and the considerable reductions which firms have been forced to make in the retail prices of such staple commodities as clothing and boots and shoes. According to expert calculations of the movements of wholesale prices, there has been a gradual decline since July, 1920, the increase that month compared with July, 1913, being put at 270 per cent. and only 227 per cent. in November. On the whole it would appear that this decline in wholesale prices is approximately in the same ratio as that for most other European countries. An analysis of these figures shows that foodstuff prices have fallen by 13 per cent., fuel by about 5 per cent., building materials by 3 per cent., metals and textiles by 22 per cent. or 23 per cent., hides and leather by 40 per cent., rubber by 35 per cent., and paper and wood pulp by 12 per cent.

A further classification based on the index prices for import and export goods shows that compared with 1913 prices the increase in the import figures was 216 per cent. in November compared with 287 per cent. in February, whereas the index figures for exports show an increase compared with 1913 of 295 per cent. in November compared with 331 per cent. in May.

The following table shows the total entrances of foreign vessels into Gothenburg harbour during the past four years :

in 1920; 2.614 in 1919; 2,210 in 1918; and 2,362 in 1917.

APPENDIX II.

CHANGES IN THE SWEDISH MERCANTILE MARINE DURING THE YEAR 1920

The permanent Mercantile Marine has therefore been increased by 87 vessels, of a gross tonnage of 78,175 tons and net tonnage of 53,982 tons, being made up as follows:

The Mercantile Marine at the end of 1920 consisted of 2,790 vessels, of a gross tonnage of 1,174,644 tons and net tonnage of 833,677 tons, made up as follows: