INFLATION BLAME

Chronicle (Levin), 7 August 1947, Page 5

INFLATION BLAME

OPPOSITION POINTS TO CAUSE OF CRISIS Received Thursday, 10 a.m. LONDON, Aug. 6. Opening on behalf of the Opposition the debate in the House of Commons on the grave economic state of the nation, Mr. Oliver Stanley said it was essential that the Government should give a precise statement of Britain 's dollar losses whaiever the cause. Mr. Stanley declared that whatever might be done now it could have been done equally well twelve months ago. He said. the Chancellor of the Exchequer, Mr. Dalton, had sinned over the past two years by encouraging inflation, which had dis'orted Britain's eeonomy. Infiationary pressure was now beccming intolerable. Could Britain avoid or even eontrol inflation while the exchequer took about 30 per cent. of the national income, he asked. Mr. Stanley said he hoped any pretence that a further American ioan was possible on a eommereial basis would be dropped. The reasons for the exhaustion of the first loan lay in causes which were Within the Government's eontrol, and which the Government might have arrested. Mr. Dalton's most blatant mistake had been his obstinate pursuit of artificial cheap money. He had forced up stock exchange values to a wholly unreasonable level. Mr. Stanley said that the Minister of Food, Mr. John Scrachey, had been outsmarted in obtaining foodstuffs and the people had to pay for it. He concluded: "We are preparcd to do nothing to save socialism, but we are prepared to do anything to save Britain." Attlee Gives the Remedies Mr. Attlee was cheered when he rose to reply. He started with a brief review of Britain's position before and after the two World Wars. Dealing with the remedies the Government proposed lor the present economic position, Mr. Attlee said that, firstly, Britain would ,

apply herself to the further redevelopment of her resources at home with a view to increasing exports and cutting out unessential imports. r "Secordly, we must increase our total output so we can siand on our own legs as soon as possible. "Thirdly, we shall press ahead with our plan for expanding production in the colonial Empire." Mr. Attlee said that the chain of events which Mr. Marshall's speecli had started might lead to further American help, but they could not and would not base their plar.s cn that assumption. In connection with the new coai target, Mr. Attlee said the Government had suggested to the mineworkers' leaders that the flve-day week should be preserved but the miners should work an extra halfhour daily. The Government was going to set a high target for agriculture— £100,000,000 worth of food by 195152, which was a 20 per cer,t. increase on the present output. The production and export drives would involve some sacrifice by both employers and workers, and longer hours would be necessary in essential industry and in transport. As an emergency measure there would be a resumption to a limited extent of eontrol over the engagement of labour and of industry. The proposals for reducing expenditure included a substantial reduction in the armed forces overseas. Mr. Attlee also announced a limitation of remittarces on foreign films to 25 per cent. of their earnings. The petrol allowance for private and eommereial drivers would be cut, which would result in a saving of approximately £4,000,000. The foreing travel allowjance would be reduced and there i would be a reduction of £5,000,000 lin imports of miscellaneous con- ! sumer goods of the luxury type. ,The Government proposed to cut timber imports by £10,000,000. i Mr. Attlee, in conelusion, appeal- ! ed to all sections of the nation to ; help win another Battle of Britain, j which demanded a united effort by ithe whole nation, and which he jwas confident they would win.