IF A SLUMP COMES

Chronicle (Levin), 9 November 1946, Page 5

IF A SLUMP COMES

(Speeial Correspondent.)

Received Friday, 7 p.m. LONDON, Nov. 7. EvidentlV after ^eeing tlie lieadlines on his refereiice to a siump, Alr. H. A. -Vlarqiuuid, Under Becretary for Overseas i'rade, is nnvrking time. In a speeeh at a luncheon he referred

ro his ' ' bri'ef remarks, " and added: " Unfortuuately, the time was 'not suflieient for me to develop tliem i'ully. My belief is that if a temporary recession sucli as that of 1921 were to occur m a year or two's time, British econOJLiy is so resiiient aud so well controlled and equipped that it would be but vdightlv ail'octcd. Anv depression oecur-

ring in the near future is uot likely to ue a long one or of a deeply-disturbing idntl, beeause there is still a large voi.nne of unsutislied deinand througliout tlie world. The 1929 type of depression! ueednever oceur again. j Coimueuting oii i\lr. Marquand's •'briel' remarks, " Fir Arnold Gridley, president of tlie Association of British Chandlers of Commerce, said that 011 a short-term view there would be 110 slump, but ou the long-term view it depended ou what preventive action was taken. "Unless Governments get together to take steps to avert or reduee the factors, we certainly faee a slump, " lie said.

Lir Frank Newson-Smith, president of 1 he London Chamber of Comnieree, does uot expect a slump of either the 1921 or tlie 1929 type, btit lie is " a littlo t'rightened of a fiuancial crisis" beeause of eontrols wliieh keep sharc prices arlilie.ially liigh. Beeause companies are uot allowed to issue new c.ap- • tal, existing prices do not rellect true values, he said, An insight into Britain 's industrial posit.io.11 is given by ihe monthly Digest of (Statistics for Septe.ruber. This states tluit the out put of cdal was 700,000 tons amre per week thaiv>in August, but the stoekpiies were 3,00(1,000 tons lower than in September of last year. There is still almost 110 hope that ■prodn'ction can keep paeo with winter demands unless there is a renl break in the weather. There is a slight rocovery in steel produet ion, but the liigh levels carlier in the year have not been regained. Tho numbor of vvorkers on goods for tho horne market is now 200,000 above June, 1 !):!). Those on goods for exprt are I over 400,000 above prc-war.