WORK MORE, SPEND LESS

Chronicle (Levin), 12 March 1948, Page 5

WORK MORE, SPEND LESS

(N.Z.P.A.-

— Reuter ,

- v r y ' + y - ~ Grim Prospect Faces People Of Britain

Covyriaht j

Received Thursdav, 9.50 p.m. . . UONEbN, JVlareh -10. : The Government 's economie. surveA will not be debated by tiie House o. •Oommons uutil next month. If is so closely bound up ' with the Budget, whieh is expected to give legislativv. eli'ect to some of its impjie.d sugges tions, that the . two will probably uc debated together. -So far Sjr •Staft'oru Crip.ps has giveu no indication as to when the -Budget m,ay be expected, but it is genexally predicted that it will be presented in fhe seeond or -third weeu of April. Financial writers, after analysing. the eeonomic suryey p.rediet that* H wilj. take flrastlc steps to mop up ali thp surplus spending power. It is too early yet to attemp;t to estimate tlie effect of the suyvey Mipon tlie Britisn .piiblic, Its neac tions, " if any, ean be as'sessed on'ly by production ,returns upon tlie amount of ^elt'-xliseipliue it is pr.epar.ed" to impose upon itsclf m eheeking inflation by working liarder, spending less and sav'ing inore.' , '• ,The Government stilL appears to be anxious that tliese measur.es shouW bc taken y.oluntarily,, ;but if they are not it is predicted that Sir -Stafford Cripjy will use the Budget to exereise eo»^ pulsion. It will not be tlie fault. of ttw British Press if tlie publjc fai-ls t(, realise what confr-onts if. Despite newSprint rationjng the national press cle voted the majority of its space to re " porting the survey, illustrating it'anu commenting upon it.». There are, oi eourse, mixed editorial views upon the Government 's share of responsibility for Britain 's present eeonomic preciieument, but in general there is- little teiidencv to lioid politieal inquests, The emphasis is rather upon getting on with the job in hand. Although trnsurvey is inevitably a depressing document it is emphasised that the pictilre it presents is not one of unrelieveu gloom, ahvaj-s providigg that Britain •ean buy further tiane through Marshaii aid. If that aid does not come in midsum rner at the latest it is admitted thal the country cannot escape the most sev.ere .and far reaching consequeijces. By that time it is estimated that the total gold and (Tollar resources of the sterling area will have dwindled to £450,000,000 .and by the end of tiie year to £225,000,000 or very little more than the irreducible working minimum laid down by Sir 8 1 alford Cripjis. When this point is reaehed 'Britain will hav.e no option but to reduV' her purchftses of food and raw materials to the figure she qan pay- .for, hnothis, as economie survey fnakes plam, means a general and drastic Idw-ering of the standnrd of livxng and. widespread nnempioyment. . ... : A A.U If the raan in the straet has an nttitude to this situation at the* mohi'eml it is that something will. tuni up.' To understand this Lftitude it. must l>e realised that internalJy Britain is still 'a relatively prdsnerous countrv. " .

■ There is a larga Budget surplus and the general level -of earnings* in* innustry — and in many avenues of thisines.^ — has increased. Unemployment is small and although tlie inc-reasing co&i of living bears heavily on all sections of tlie population it has so far been oiiset to some extent by increased wages, food subsidies and similar 'arrangements. The Government 's real proolem is to drive lionie the fact tuai inflation is a real danger and not an abstruse economie term.

If private and public comments. upon the situation can be taken as any indication of tlie general feeling of utc people the most unpalatable aspect ot present position is the realisation oi Britain's financial and economie de pendence upon American aid. * Tlns .does not nacessarily imply hostility to' the United States — on the eontrary there lias been a substantial improve.ment in Anglo-Ameriean relations dur ing tlie pagt month — but arises cliiefly from thn feeling that Britain 's iude- ' pendence and place in tlie world arethreatened by eonditions outside tne ijpntrol of its people. ' . It is for this. .feason . that' there is con^^iabl^q?u|>|)(^vfdf U Thfe attativiie .. of tlie' Beaverbrook Press whicli argues that Britain should not accepi further American aid whatever tnc price. The British Communists tane ep the same atfitude but for .diff'erent reasons. : . It is generally agreed that the latest eeonomic survey is more reaiistic* than the one issued last j'-ear. It is now plainly admitted that Britain must have further American aid in order to buy time for recovery and tlierc is a taeit admission that considenng the restrictions placed upon it Britisn industry is ajready doing almost as much as can be expected of it. it is notieeable that the Government 's ap- . peal for, 10 per cent. extra production from eyeryb.ody has been dropped and that the general level of e.xport and production targets has been lowered. The main critieism cehtres upon tlie Government 's refusal to tell the uniojis - Bluntly that they must increase then working hpurs and ppon its failure ro reduee its own exponditure.