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Excerpt from Industrial Peace, 1922, Vol. 10 There appears at first sight to be considerable justification for the policy now being pursued by local authorities. Never theless. It is fundamentally wrong. We do not desire to suggest that public bodies should not economise in the sense of adjusting wages and salaries in such a way as to secure comparative equity, nor do we criticise their endeavour to get rid of surplus labour. Such economies are always de sirable - and necessary. But to economise in the sense of refraining from incurring expenditure to secure things which are in themselves desirable is to make confusion worse con founded. If, two years ago, when everybody was fully employed, it was the duty of every individual and public authority to economise in the sense of standing aside in order that labour might be concentrated on essential and urgent services, it obviously cannot be their duty to do so now, when labour is seeking employment. Public authorities should dovetail their demands into those of private businesses. And in this way stabilise employment. If they wait until wages and costs reach 'rock bottom they will wait till Doomsday. If, however. They now step into the market for labour and capital the effect will be to assist in creating precisely that stability for which they are waiting. The point calls for elaboration. A local authority has hitherto accepted no obligation in respect of people living beyond its own boundary. And if it 'created work it would be in the interests of its own inhabitants. But in most cases the effect of its action would be to create employment else where. And the effect outside its own boundaries calls for emphasis. If. For example, Liverpool decided to extend its tramway system, not only would it give employment to many unskilled workers in Liverpool, but it would place orders forrails. Trams and materials to factories on the north-east coast and in other places. If all municipalities did likewise the result would