PROBLEM FOR STERLING

Press, Volume XCVI, Issue 28420, 29 October 1957, Page 9

PROBLEM FOR STERLING

Attempt To Halt Inflation (NZ. Press Association—Copyright) (Bee. 8 p.m.) MELBOURNE. October 28. Britain will face a difficult time fn the next six months in trying to stop inflation and in restoring j ■ the faith of everyone at home and abroad in the purchasing power of her money, said the editor of the London ‘ ‘lnvestors’ Chronicle.” Mr Harold W. Wincott. last night. Mr Wincott. speaking in the Australian Broadcasting Commis- . u aion's "Guest of Honour” pro-| gramme, said the next six months - would test the Government, indus-I trial management, and trade | unions alike. i ‘The problem is to stop trying to take out of the pot more than ■ we put into it—a process which i history has proved inevitably in-' volves depreciation of the pound’s' . value.” he said. , To many people, the solution! lay in ending continuous wage ■.-? demands, which by themselvesl were forcing the cost of living up. Some economists disagreed, say-: f ing it was not fair to blame unions ■ I and that the chief blame lay with; the Government, which allowed ‘ to arise in which higher |< wages were easily demanded and conceded. “Personally. I think there’s a good deal in this view.” he said. . The test would come over current wage demands, most of which he ' thought the Government had decided to resist. Overseas confidence in sterling. Shown in the sharp recovery in ■ the dollar rate since the bank rate . was increased, was more likely |' to be maintained if the British | Government now stood firm. ,; ; Mr Wincott said there was no| reason for thinking that sterling ( needed to be devalued. Prices at | , home were not too high in rela-1 ' tion to prices in other parts of the' 1 world. * ‘‘Our exports have been selling u | ?well. They have, in fact, been ; ; •Selling a good deal better than we i I’expected they would at the time 11 I-of the Suez crisis last November,” 11 • he said.