WAR ECONOMY IN BRITAIN

Evening Star, Issue 23374, 18 September 1939, Page 10

WAR ECONOMY IN BRITAIN

REMARKABLY LITTLE DISLOCATION UNEMPLOYMENT AMONG CLERKS AND SALESMEN NEW FORM OF PROFITEERING Press Association—By Telegraph—Copyright LONDON, September 17. (Received September 18, at 12.30 p.m.) Although the nation has switched from peace to war economy with remarkably little dislocation,' there have already been some marked surprises. The initial effects have been definitely deflationary. Many thousands have lost employment, resulting in a reduction in purchasing power and saving capacity. The situation is undoubtedly temporary and will bo mitigated when war economy gets in full swing. Signs of a new unemployment problem are already unmistakeable, differing from the old one inasmuch as it affects mainly clerks, salesmen, and other black-coated workers. The authorities do not seem to know whether to advise people to spend or not to spend. There are also indications that the control of prices is not* yet fully effective. A new form of profiteer has arisen—namely, the smaller middleman, who lost no opportunity in raising prices. The ‘ New Statesman ’ cites rises of 25 per cent, in furniture and hosiery, 60 per cent, in carpets, and 15 to 25 per cent, in many other household articles'. So far there have been no fortunes made on the Stock Exchange, where dealings are restricted to a cash basis.