WAS  PIG IRON A WEAK FACTOR IN  THE INDUSTRY?	153
High wages in the U.S.A. were offset by greater economy in
man power, the output per man depending less on the personal
efficiency of the workmen than on the amount of plant and machi-
nery available. Although wages in the U.S.A. increased steadily
from the beginning of the period, particularly in 1920-30, the
following figures indicate the fall in labour cost per ton due to
the effect of plant improvements and mechanization:
s. d.	s.	d.
1880              ii   8	1919             3	i
1890               6   8	1930             i	8
1900               50
The increase in gross productivity was faster than the rise in
wages as blast furnace weekly wages increased 96 per cent between
1913 an4 19285 whilst the tonnage per man increased no per cent.
In 1925 the American wage was 100 per cent above the British, but
the wage rate per ton was only 60 per cent of the rate in this country.
The countries producing the low-priced pig iron imported into
Britain in 1920-30 were the low-wage countries of the Continent,
but to conclude that their strong competition was due to the lower
wage level is wrong, at least if unqualified. Although evidence may
be produced purporting to illustrate the cheapness of low wages
(e.g. in 1925 the U.S.A. produced nearly 50 per cent of the world's
pig iron, but Indian and British pig iron was imported on the
Atlantic coast cheaper than the home product), it ignores all
reference to efficiency of production and natural advantages.
Wages in France and Belgium were much lower than in Britain at
the beginning of the period when we exported large quantities of
pig iron at prices appreciably below those ruling on the Continent.
The change was due to the fact that whilst money wages remained
low on the Continent, efficiency in the production of pig iron, as
measured by the output per man employed, not only caught up
but surpassed British practice. Complaints were frequently made of
the burden of British wages, but it was not so much their absolute
level as the labour cost which was high. To have reduced the wages
of pig iron workers a small percentage would have made no appre-
ciable difference to the total cost of production, which consisted
mainly of the raw materials charged to the furnace. The wage level
in Britain could only have been maintained above that on the Con-
tinent by higher technical efficiency and by the fuller exploitation
of our natural or geographical advantages to reduce assembly costs.