INVESTMENT CONTROL

Evening Post, Volume CXL, Issue 48, 25 August 1945, Page 7

INVESTMENT CONTROL

BRITISH POLICY NOT CLEAR

LONDON, August 23. There was no intention to compel anyone to invest their resources hi one way rather than another, said the Chancellor of the Exchequer, Dr. Hugh, Dalton, in the House of Commons, when replying to Mr. Churchill's request for clarification of the phrase in the King's Speech, "the effective planning of investments." Dr. Dalton added: "Investment planning has two aspects, physical and financial. It is the Government's policy, on the physical side, to secure that available labour and materials are used in accordance with whatever plans may be required for the purposes of employment policy and national development. "On the financial side, control of demands on the capital market will be exercised according to the same principles. The proposed legislation will not orovide for the exercise of financial control over the use by-business undertakings of their own cash or other existing resources. "I do not contemplate any substantial change in the present arrangements regarding the relations between the banks and their customers. Borrowing from banks is already, in certain circumstances, subject to the capital issues control. My predecessor has already asked the banks to observe the same principles regarding the granting of advances as apply to the granting of Treasury consent to new issues." The "Daily Telegraph's" city [ editor, commenting on the reply, says it seems clear that the Government intends to direct the flow of labour and. materials as far as may be judged, necessary to ensure full employment, and that limited financial powers corresponding to those physical controls are already included in the distribution of industries scheme. Vital points raised by Mr. Churchill's question and many others being discussed by industry and" the city remain unanswered. •