DECADE OF FULL EMPLOYMENT

Press, Volume XCIII, Issue 27989, 8 June 1956, Page 16

DECADE OF FULL EMPLOYMENT

BRITAIN’S PROBLEMS REVIEWED PRICE STABILITY NOT YET ACHIEVED “We all want full employment, and we all want stable prices, but we have not yet succeeded in combining the iwo. The experience of the last 10 years has shown that the fuller employment is the more liable are prices to rise; but the Government does not believe that there is any inevitable conflict between the two objectives.” These observations on the economic implications of full employment are quoted from a White Paper of that title presented to the House ox Commons recently. The paper says that the two objectives can be achieved if certain conditions are fulfilled, and lists some of these conditions. The paper reviews employment and prices in Britain since 1945, and discusses changes in the distribution over the 10 years surveyed. Between 1938 and 1948 prices of consumers’ goods and services roughly doubled. .Without taking into account direct taxation. wages and salaries rather more than doubled, and dividends of nonnationalised companies rose by about one-tenth. “Over the period 1948 to 1955, while consumer prices rose by nearly one-third, both wages and salaries and dividends increased by nearly two-thirds, dividends having in the last few years caught up with wages ‘‘Taking the period 1938 to 1955, wages and salaries have increased by very much more than dividends; and the real value of wages and salaries has increased by 40 per cent, over this period, while that of dividends has decreased by 30 per cent. Pressure on Prices Unless the upward pressure of rising money incomes on prices was moderated the economy was likely to be exposed to serious and increasing strain. “These strains, if not relieved, will prevent us from realising the full potentialities of economic growth and may lead to unemployment by making it more difficult to secure our imports.” Overseas earnings would have to be increased to pay for imports needed to sustain an expanding economy, to provide for overseas investment, and to build up reserves. An adequate volume of exports depended above all upon “the competitive strength of our goods in overseas markets. . . . Unless our prices are fully competitive, our exports will be inadequate for our vital national needs, our currency will not retain its value in world markets, and unemployment will result from shortage of imported raw materials.” Britain had lost ground to other exporters since I'so. ‘‘The total volume of world trade in manufactures has risen by more than 40 per cent., but our share has fallen from more than 25 per cent, to about 20 per cent. . . . (This) situation must be corrected ” A rise in domestic costs and prices not only affected a country’s balance of payments adversely, but it undermined the incentive to save. “But the effects of a rising price level have a much more direct and more immediately personal impact. Continually rising prices are an obvious social evil. . . . The difficulties and hardships inherent in such a situation bear most heavily on those dependent on fixed incomes, who are in continual danger of having their standard of living progressively reduced.” Danger of Inflation The Government must seek to ensure that the pressure of domestic demand does not reach a level at which it threatens price stability and endangers the balance of payments. Fiscal, monetary and social policies would need to be adjusted from time to time to maintain full employment without inflation.

‘‘lf the prosperous economic conditions necessary to maintain full employment are exploited by trade unions —businessmen, price stability and full employment become incompatible. The solution lies in self-res f raint in making wage claims and fixing profit margins and prices so that total money income rises no faster than total outpUi7 increasing productivity, which called for contributions from both management and labour, was essential.

‘‘lf we all press constantly for more money, regardless of how much we produce to spend it on, prices are bound to go on rising. But if we concentrate on increasing productivity—on keeping costs down, price stability can be achieved along with full employments rising standard of living.” COMPANIES REGISTERED nJti“fied°Vn W t?f S?T 1 P an y .registrations are notified in the Mercantile Gazette”* Pearl Agency (The), Ltd. Private company May 22; c/o. M. G. Proctor I™B flloo'ln chr ‘ st <*ureh. Capital. £l2OO in £1 shares. Subscribers: ChristCB C Mvhre W<!ll ’k C -. G - M - Parfltt - ard Xk p- My “£ e 200 each, M. G. Proctor 600 Objects: Financial investment and lend mg agents, and incidentaL d Ze^K? e T S M Sn 2 S - a . nd Jefteri «s (New Zealand), Ltd. Private company. May 23£lO0 IC b> fle £i st reet, Christchurch. Capital, C2’ O- 1 shares. Subscribers: Essex. England—Sir R. J. Hunt 1: Suffolk—W ?w’l^ e n er *’ G ’ B ’ W - Scholefteld 1. Ip. CM h 07 Ra n S >? me , s- . Slms - and Jefferies. oTeM anr["incidental 0 ' agricultural machinery, Quartly and Robinson, Ltd. Private h PI P? ny ’ T* y £ 5; ? 22 ' 124 Hazeldean rold Christchurch. Capital, £5OO in £1 shares Subscribers: Christchurch—R. w. Quartlv 250 S. Robinson 250. Objects: Engineers toolmakers, and incidental. ngmeers, ~L I Hills ’ Ltd - Private company May 2 ?- Capital, £lO,OOO in £1 shares’ Subscribers: Walhao Downs—R E C ?990 r ’ S| Obie 1 ? : , Waimate —C. M. Stewart 9990. Objects: farmers and incidental Stewarts Gully (1956). Ltd Private aompany May 28: Stewart’s Guliy Capital, £5OOO in £1 shares. SubscribersStewart s Gully—R. w. Dempsey 3500 P h,’.<E?™ Psey i soo ' Objects: Acquire land' buildings, and incidental. Crum (Ray), Ltd. Private company 29 ’ WI J , i S s * reet ’ Ashburton. Capital £3500 in £1 shares. Subscribers: R. M 34991 Crum 1. Objects: builders bricklayers, and incidental G.M. Investment Company, Ltd Pricompany,... May 29: 449 Ferry road ghristchurch. Capital. £lOOO in £/shares' ?m b a ll ? e > rs: Chr *stchurch—M. p. J. Rvan Obie^ sh ! ey j B S nk—M - G - Gillespie 500. Objects, land, buildings, and incidental.

Capital Increases notified'— lOWing 1 OWing increascs in capital are

Motorways (Auckland). Ltd. Capital increased from £20,000 to £30,000 Ransley Scrimgeour Motors, Ltd Camtal increased from £5OO to £6000.' P Mount Cook Air Services, Ltd Caoital lndr , e ?, s , ed from £ 151,0 to £15.000 t ' ap,tal Wattledene Poultry Farm. Ltd Canital increased from £7OOO to £7500. CP 1 1

STOCK SALES STUDHOLME JUNCTION fFroiri Out Own Hepnrtert , WAIMATE, July 7 The yarding of store sheep at Studholme Junction sale was rather below requirements, and an entry of about 400 s'lorn Tan ( S ° ld Under good competition Tail-end lots comprised the entry in the fat sheep section, and met with quite a good sale considering the ouabtv Ex porters operated for the I. st time t.iis season. u inis

Values were:—Fat lambs shorn!. 55s 7d to o7s ,Id: woolly. 43s Id to 60s Id F at .S wes: good 33s ld io Ms Id; light 17s to 28s 7d. Fat wethers: young, 48s Id to 61s; ased 34s Id Rooney cross wether lambs (medium). 29s 6d. Romn-y cross ewe lambs ishorn). good. s"s 6d to 57s small to medium. 38s t" 445. Romney cross two-tooth e cs (c-ills! 3ls to 395. Halfbred wether lamb, (snail), 12s; two-tooth io our-toot 1 we!h rs 51s 6d.

ARAHURA DREDGE • hrtiiii oui (jinn Kept trier) GREYMOUTH. June 6 The Arahura dredge, operat'd by Gold Mine«: of N»w Zealand, L+d r -ng - -ecovered 1028 ounces of bullion from 280,000 yards of spoil, hanaleu In 557 hours.