BRITISH ECONOMY

Gisborne Herald, Volume LXVI, Issue 20036, 7 September 1939, Page 10

BRITISH ECONOMY

CHANGE-OVER TO WAR “WELL-OILED MACHINE’' CONFIDENCE IN CAPACITY LONDON PRESS PRAISE (British Official Wireless.) Reed. 9 a.m. RUGBY, Sept. 5. The London Stock Exchange will reopen on Thursday. Meanwhile, transactions between members are permitted according to the special rule announced yesterday by the committee. The closing of the exchange, it is emphasised in financial circles, was due not to any weakness of the market but for the convenience of members. To-day’s Financial" News pays a warm tribute to the thoroughness of the preparations which enabled Britain’s economic system to pass smoothly from near-war conditions to those of war. , The article continues: “There is none of the hasty improvisation of 1914. One gets the impression of a well-oiled machine at work. The preliminary financial measures are drastic, comprehensive, and sensible.” Such measures include the complete control of the foreign exchange market and the domestic financial position, as well as steps to prevent emergency difficulties. It appears to be a mixture between control, and maintenance, as far as possible, of existing institutions. Control consists for the most part of the control of prices and the control of the distribution of supplies through priority schedules—such control being exercised through the industries’ own organisations. There is evidence in the City, according to this newspaper, of considerable confidence in the capacity of Britain’s economy to undergo efficiently and rapidly the change-over from peace to war.