ECONOMIC DRIFT IN BRITAIN: WARNING BY ARCHBISHOP

Greymouth Evening Star, 31 July 1947, Page 8

ECONOMIC DRIFT IN BRITAIN: WARNING BY ARCHBISHOP

LONDON, July 30.

The Archbishop of York (Dr Cyril Garbett), in his diocesan leaflet, advises everybody to have a really good holiday this year. “This will give health and courage to face the economic crisis which only something like a miracle can avert,” he says. The Archbishop adds that when Britain has spent the last dollar of the American loan she will be up against the stark reality “of what may easily prove the gravest economic crisis the nation has ever had to face.”

“The last few days have been the worst on the Stock Exchange since February, when the fuel cut hit the Stock Exchange market,” says Pouters financial editor. “This time Ihe reason is the growing concern about the economic position, and also about the political outlook, since talk is being revived of the possibility of a General Election. “It is realised that the American dollars are running out fast, and that Britain may have to wait some time and agree to certain conditions before the Marshall plan can operate. “Many millions of pounds have been shed from the market value of gilt-edgeds and popular home industrials. Many long and medium-dated British funds are standing at a 3 per cent, basis. It is impossible to’ estimate accurately the loss of market valuation of the whole industrial list, but it has been computed that giltedgeds have declined £53,000,000 this month. “The effect on other sections of the Exchange generally has been to restrict trading, with the exception of oil .speculators, many of whom have decided to consolidate their handsome profits. This has resulted in sharp declines in leading oils. Perhaps the most satisfactory section has been mining shares, where prices are not unduly disturbed although business has contracted. “Generally the stock market outlook is not too favourable, and there is little to tempt new buyers at present.”