WAR ECONOMY

Gisborne Herald, Volume LXVI, Issue 20046, 19 September 1939, Page 9

WAR ECONOMY

SURPRISES IN BRITAIN UNEMPLOYMENT PROBLEM (Elec. Tel. Copyright—United Press Assn ) (Recch Sent. 19, 9 a.m.) LONDON, Sept. 17. Although the nation switched from peace to war economy with remarkably little dislocation, there already have boon some marked surprises. The initial effects have been definitely deflationary, many thousands of people have lost their employment, resulting m a reduction in purchasing power and saving capacity. The situation undoubtedly, is temporary and will be mitigated when the war economy gets in full swing.

Signs of a new unemployment problem already are unmistakeable, differing from the old one inasmuch n; it affects mainly clerks, salesmen and other black-coated workers.

The authorities do not scorn to know whether to advise the people to spend or not to spend.

There are si Iso indications that the control of prices is not yet fully effective. A new form of profiteer has arisen, namely the smaller middleman. who lest no opportunity in raising prices. The New Statesman cites rises ol 25 per cent for furniture and hosiery, (id per cent for carpels, and from la to 25 pc-r cent for many other household articles.

So far there have been lm fortunes made on the Stock Exchange, where dealings have been restricted to a cash basis.