Britain Gets Over Half Germany’s Merchant Fleets

Grey River Argus, 15 April 1948, Page 5

Britain Gets Over Half Germany’s Merchant Fleets

COLOGNE, April 13.

The Inter-Allied Reparations Agency announced that it has a*located to Britain 350,000 tons of the former German merchant fleet—overhalf the total tonnage allocated.

BEVERIDGE WARNS OF DANGER OF BRITISH INFLATION

DUNEDIN, April 14

The Dunedin Town Hall was almost filled for Lord Beveridge’s first lecture, which was on the economicposition of Great Britain. He said that to the man in the street, in Britain everything in the garden was lovely. There was no fear of unemployment. He had better wages than ever before. He was getting increased wages for shorter hours or working heavy overtime. He knew he haa social - security in lull, oi would have about July, and he thought that the war was over. This vision through i ose-coloured spectacles did not 'appear so strongly to the man on the land, and still less to the womenfolk, who were generally to be found standing in queues. The Government looked on the scene through spectacles of the deepest and most gloomy shade of blue. The Government knew the facts and the man in the street did not.

The two problems facing the British Government were the balance of overseas payments and the risk of inflation. Britain’s reserves were dwindling so fast that the Government knew that by the end of the year the country would be unable to buy food or raw material. “Unless we can get another loan from America before the middle of the year we must go hungry; we are utterly dependent on their help,” he said.

MENACE OF INFLATION

The danger of inflation was very real. While Britain was approaching a morass of poverty, the man in the street was asking for more money and shorter hours. The Government was trying to persuade trade unions not to ask for more money, except in quite exceptional cases. A realisation of the gravity of the situation had to be brought to the man in the street. He was harbouring a “whole covey of illusions.” These included a tendency to look at wealth in terms of money and the idea that the millennium could be brought about by voting in a Labour Government. Referring to the threat of unemployment, Lord Beveridge said it could be likened to a dose of strychnine—a small amount was bracing, but a large dose killed the taker. Britain needed a tonic, and he thought the abolition of subsidies would he the most bracing one possible. These were costing £400,000,000 a year, and their abolition would make people pay the real market price for commodities. He was confident that American aid would be forthcoming, because Britain was recognised as one of the greatest bulwarks of liberty, but Britain would have to find a solution to her own problems. “Have no fear—we shall pull through all right.” he said. The only thing is how much misery we shall suffer in the process.”