TOTAL WAR EFFORT

Greymouth Evening Star, 11 February 1942, Page 6

TOTAL WAR EFFORT

DRASTIC AUSTRALIAN PLAN

CANBERRA, Feb. 11

I A drastic plan for the control of inidustry. of private spending, of wages, of manpower, of business profits, and iof speculation, was announced tonight by the Prime Minister, Mr. Curtin. He explained that the aim was in I view to ensure a total war effort being 'made by the Commonwealth. I The plan, he said, would affect all classes. Everybody would be asked |to make some sacrifice. The incomes of all sections of the community would be fairly controlled. Every person would be asked to continue his or her present occupation, unless anybody desired to transfer to war work. There would be a ban, he said, over the whole area of the investment of capital, except to help war objects on capital issues. The desire was to eliminate every form of speculation and to cont i'o 1 prices. A limitation of profits to 4 per cent., said Mr. Curtin, would be instituted. The Commonwealth Bank . would control interest rates. Wages: would be pegged at the present level. I He added that manpower regula- ; lions would become operative to-day. ' Absence from work, except for sneci- : fic medical or sipilar reasons, would 1 be adjudged illegal. Persons absenting ■ themselves from work capriciously i would be dealt with. Mr. Curtin said the Government i would assume the power to proclaim 1 any area as theirs under military'con- : trol in the event of a sudden emer- | gency. Speculations in food or other I commodities, such as forward dealing. I would be strictly prohibited. TO OPERATE IMMEDIATELY ! (Rec. 12.35) CANBERRA, Feb. 11.1 All phases of the new plan an-1 nounced by Mr. Curtin last night will.i operate immediately. The Government spokesman said: that the prices of all goods and ser-; vices would be pegged, with the lev-I els ruling yesterday as the maximum,; and with some reductions certain. I The spokesman explained that the ban imposed on absenteeism meant that strikes and lock-outs were now i illegal. Civilians must observe the! same standards of duty as apply to • the fighting forces. Tne prohibition of the sale or in- ' vestment of capital will probably! mean the restriction of Stock Ex-1 change transactions to little more than I dealing in government securities. The I Government believes that this pro-* hibition will end the fictitious values! being given to some forms of property, by the war. Investments brought un- I dor control are not restricted to[ stocks and shares, but include house properly and other items. ,

The limitatfon of profits to four per cent., does not necessarily mean that dividends in limited companies will also have a four per cent, limitation. The dividend rates in somecases may still exceed four per cent, though the Government feels that the pegging of prices and other factors will generally wipe out the possibility of such an excess.