MORE UNEMPLOYMENT

Waikato Times, Volume 125, Issue 20913, 19 September 1939, Page 8

MORE UNEMPLOYMENT

CONDITIONS IN BRITAIN ft NEW FORM OF PROFITEER TRADESMEN RAISE PRICES (United Press Assn.—Elec. Tel. Copyright) LONDON, Sept. 17 Although the nation had switched from peace to war economy with remarkably little dislocation, there have already been some .marked- surprises. The initial effects have been delinitely deflationary. Many thousands have lost employment, resulting in a reduction in purchasing power and saving capacity. The situation undoubtedly is temporary and will be mitigated when war economy gets i.i full swing. Signs of the new unemployment problem are already unmistakeable, differing from the old one inasmuch as it affects mainly clerks, salesmen and other blackeoated workers. The authorities do not seem to know whether to advise people to spend or not to spend.

There also are indications that the control of prices is not yet fully effective. A new form of profiteer lias risen—namely, the smaller middleman, who has lost no opportunity in raising prices. The New Statesman cites rises of 25 per cent in furniture and hosiery, CO per cent in carpets, 15 to 25 per cent in many other household articles.

So far there has been no fortunes made on the Stock Exchange, where dealings are restricted to a cash basis.