Cripps Reports Progress But Also Cautions

Greymouth Evening Star, 20 October 1948, Page 7

Cripps Reports Progress But Also Cautions

(Reed. 11.5 a.m.) LONDON, Oct. 19. Addressing the Lord Mayor’s dinner to bankers and merchants, the Chancellor of the Exchequer, Sir Stafford Cripps, said the revenue was holding up well and there was no reason for supposing that the suiplus forecast in the Budget would not be i*ealised» On the expenditure side, something extra would be required for the defence services and there would be some increase on the civil sidq, especially in food subsidies. However, this would not make an important change in the total surplus, though there might be some reduction. Sir Stafford said that import prices continued to rise, which was bound to mean increased prices for food, basicraw materials and increased subsidies. Britain’s overriding need still was more exports. The nation showed goca progress towards the export target at the end of the year of 150 per cent, of 1938 in volume. Encouraging Sign “We shall have our job cut out to maintain the present volume of exports, let alone increase it,” he said. “The invisibles have improved markedly a large deficit has been turned into a small surplus—which is an important and encouraging Sign. The latest statement on the gold and dollar drain shows that, making allowance for the sums allocated us under E.R.P., we are nearly in balance on the geld and dollar account. “The reduction by more than halt since last year in that part of our imports for which we are not paying by exports might have been expected to lead to an increase in inflationary pressure, and yet we made this notable achievement in the balance of payments without additional inflationary pressure at home. “Western European democracy and its way of life cannot survive, unless i we can build up its moral and materiI al strength. That is why we attach ' so high a degree of importance to economic, co-operation in Westein Europe. Danger Of Complacency “However, though the general picture of our progress is encouraging, ■ 1 must warn against any complacency which might result from the belief that we have surmounted our difficulties. We need and are grateful lor E.R.P., but we will be infinitely more : gratified when we can recover complete economic independence. i “The kev to continued success is cheaper and better production, and the policv of sterling stability and greatly increased exports demands a widespread system of controls, which are justified by the results achieved. As soon as we can get increased supplies, we will be able to rid ourselves of many controls, but till we reach that point they are an essential element in our general economic and financial policies. We shall improve and ease their workings wherever we can. ,\ “As our part of the recovery plan within the Marshall period, we must provide £2,000,000.000 for capital investment next year and following • years, which is about 20 per cent, of the total national income. | “It was encouraging during the last ' lew days to hear the repeated e;>presisions of goodwill and offers of help which have come from all the Commonwealth statesmen gathered in London and whose are accompanying us on our difficult journey.” ■ .