BRITISH INDUSTRIAL STRUCTURE

Dominion, Volume 32, Issue 234, 1 July 1939, Page 2 (Supplement)

BRITISH INDUSTRIAL STRUCTURE

Examination Of Defects

“The Paralysis of Trade,” by Percy G. Donald (London: Allen and Unwin),

An examination of the defects of the British industrial structure has been undertaken by Mr. Donald in his book, “The Paralysis of Trade.” A leading figure in the council of the Loudon Chamber of Commerce for many years, he has the experience of City affairs which enables him to write with authority. He issues a warning that all is not well with British trade, finance or economic development. Reviewing the position he points to the artificial chnrcater of the present industrial boom, and also to the smaller and less spectacular trends which he interprets as patent signs of coming depression. After outlining the manifold reasons for the present situation, he turns to the problem before the nation—the problem of avoiding or minimizing the effects of another slump period. In putting forward proposals for a trade revival, Mr. Donald starts from the assumption that Britain internally requires six basic conditions: (1) Subsistence for all; (2) work, on demand, for those wanting it; (3) pensioned leisure for past workers, who have grown old in the country’s service; (4) full deelopment of all possible resources; (5) an internal measure of alue. unvarying in purchasing power; (6) a policy to exclude the products of foreign cheap labour and "dumping.”

He advocates, first, the two-currency system which would divorce domestic from external finance, and sets out the arguments in favour of this revolutionary economic practice. Secondly, he proposes a “Planning Council” to arrange the economic life of the nation —a body of experts acting as distinct from existing administrative departments, with a membership drawn from the professions, the arts, accountancy, industry, shipping, distribution, transport and labour. “A Planning Council of this kind,” he Writes, “should have among its duties the creation and inauguration of plans for the general improvement and advancement of the country. Its aim would be to keep a steady flow of purchasing power in the form of wages, and in this way to keep our national economy balanced and the price-level stable, and to see the excess production for export was consistent with our need for import”

Foreign and Empire investments, debt servicing, pensions,, the Parliamentary system, ptibltc works, unemployment, industrlal 'cdmbines, colonies, shipping, agriculture, and fisheries are other questions dealt with by Mr. Donald, who concludes with an appeal for the preservation of the capitalistic system by its adaption to the needs of today.

“Capitalism,” he writes, “has changed the face of the world. It has built such a civilization as no writer of antiquity ever imagined. It has brought the whole world into one, at least as far as' communleation is concerned, though it has made us politically more apart, than ever. Are we going to allow the petty rivalries of politicians, the bogey of national boundaries, the vested interests and fog Or jargon that conceal and protect these interests to thwart us? Are we going to stand 1 by complacent while our economic order, the system that has done so much for the world and for civilization, goes to pieces?”