PLANNED ECONOMY IN PEACE-TIME

Dominion, Volume 37, Issue 206, 29 May 1944, Page 4

PLANNED ECONOMY IN PEACE-TIME

British Government Plan MEASURES TO IRON OUT POSSIBLE SLUMPS (British Official Wireless.)

RUGBY, May 2G.

“Practical expression of the expansion policy” was the term applied by lhe Minister of Reconstruction, Lord toolton, to a Government. White Paper on employment policy today. Lord Woolton said that the White Paper presented a new approach by the Government in relation to employment. It was new because it dealt with the problem of the maintenance of employment rather than the problem of curing unemployment. It meant maintaining a high standard of living, which involved people in having a high standard of consumption. The Government proposed that as soon as they saw there was an impending falling off in the consumer demand they would take steps to increase the spending power of the public. If, on the other hand, they saw demand outrunning supply/ then there would be au artificial check on expenditure. One of the main objects was the maintenance of an increasing standard of living for all, and in doing this we had to import considerable quantities of food. We could no longer pay for our imports by interest on foreign investments, as these investments had largely been soul to pay for the raw materials necessary for war. We had therefore in the future to pay as we went. Expand Export Trade. * To do this we had to expand our export trade by increasing the efficiency of our production and finding overseas markets* The war had shown that the skill and adaptability of our industry was as high as ever, and there was encouragement and hope for the future. The Government aimed at ironing out slumpfe and depressions, which only favoured speculation. What was needed was a steadily-increasing volume of employment ami consumption. The White Paper accepted the principle that it was the Government’s responsibility to anticipate problems and plan ahead to avoid them. The Minister of Labour, Mr. Revin, said that for a hundred years the economic policy had been guided by the Bank Charter Act of 1844. Now the Government proposed to change the policy drastically. The old policy had tried to adapt humanity to fit in with the system of exchange. The new policy adapted the system of exchange to the needs of humanity. . _ Annual Economic Census. An important provision of the Government’s plan was an annual manpower survey and a census of production which would influence the Chancellor of the Exchequer in drawing up the nation’s Budget. Capital expenditure would also be planned a year ahead. The Government could organize the internal economy on a comprehensive basis in the full knowledge of industrial and human facts, and in the light of the world situation. The Government aimed at abolishing “special areas” and controlling the mobility of labour and industry throughout the country, to ensure the maximum employment and stimulation of industrial development where it was most required. Mr. Bovin said that the White Paper was part of a wide, co-ordinated scheme for promoting social security throughout the country of which the Education, Social Insurance and Health Bills were other examples. The White Paper says that the principal features of Government policy will be as follows: — . . 1. A system of varying contributions will eventually be introduced within the new social insurance scheme to influence the volume of the purchasing power of the community. When unemployment rises the contribution will be reduced, giving the public more money to spend. Good Times: Higher Taxes. 2. Planned spending on public works to check the onset of depression. A co-ordinating body under the Ministers will be set up to control expenditure by

public authorities five years ahead. 3. Concerted action between the Ireasury and the banks is planned to influence the volume of z capital expenditure by variation in the rate of interest. As part of the measures, it is suggested that the taxes in good times should be higher than ’are necessary and that the surplus should be carried over as credits repayable in bad times. Ihe White Paper antipicates thut rationing and a measure of price control will go on for some time after the war, and that increases in the rations of such things as clothes will be regulated by increases in production. The level of prices and wages must be kept reasonably stable. MONETARY APPEAL LONDON. May 26. A White House statement regarding the calling by President Roosevelt of a monetary and financial conference on July 1 says that an invitation has been extended’ to all the United Nations and to nations associated with them in the war.” The conference decisions will subsequently be submitted to the respective Governments for approval. Forty-two nations and the I reach Committee of National Liberation have been invited to the conference, which will be held in Brotton Woods. New Hampshire. The Associated Press reports from Washington that it learns authoritatively that the conference will consider proposals for a 10,000,000,000-dollar world bank for reconstruction and development.