READJUSTMENT MAY BE PROTRACTED— British Comment On Devaluation Of Pound

Greymouth Evening Star, 21 September 1949, Page 6

READJUSTMENT MAY BE PROTRACTED— British Comment On Devaluation Of Pound

LONDON, September 20.—Emphasising that the' world-wide process of readjustment to the heavy devaluation of sterling will obviously not be complete within a few days, the Financial Times, in a leading article, says: “Indeed it may be many months before the consequences of the British . Government’s decision cap be’fully assessed with any precision. Undoubtedly the decision has inaugurated a new era in world economic affairs, and has set in train a series of events whose ultimate consequences can only dimly be foreseen now.” Emphasising that the optimism of the Chancellor of the Exchequer (Sir Stafford Cripps) about devaluation is not shared in political circles, the Financial Times says: “Labour members of Parliament envisage a much more substantial increase in the cost of liv • ing than indicated by the Chancellor. They fear that, even though the Trades Union. Congress may endorse his plea that no wages claims should arise from devaluation, it is highly doubtful whether individual trades unions would abide by its decision.” According to the labour correspondent of The Times, one complication is that some large sections of workers, including builders, iron and steel workers, and boot and shoe operatives, have cost-of-living sliding scale agreements which automatically bring them wage increases as the cost of living rises. “Confidence Trick”

Under, the heading “Humbug,” the Daily Mail, in a leading article, says: “The Government’s devaliiation announcement is one of the rhost cynical confidence tricks ever worked on the British public. To listen to the Socialists, one would think devaluation was the best thing that had ever happened. It is not. - "It is the desperate act of a desperate Government, whose recklessness and extravagance have helped to push the nation to the edge of disaster—asthey didin 1931. They hope by depreciating the £ to tide themselves over at least until the General Election. The whole thing reeks of dishonesty, humbug and party opportunism. “Sir,Stafford Cripps has known for years what really must be done to save this country, btit he has refused to face up to it. He knows that only harder work, longer hours with no wage increases, economies in the social services, and drastic cuts in Government expenditure can restore Britain. He has hinted at these things, but he has the courage to follow through with action,” In a leading article on.devaluation, The Times says: “Sir Stafford Cripps

has made it clear that devaluation is, in the. Government’s view, just one item in the programme discussed at Washington to close the.‘dollar gap. He was right to present the new state of affairs as a springboard for fresh endeavour.

People Not Told “The task of making British goods competitive, not only i'n the dollar markets, but in other markets where rivalry is growing, calls for much more than the ‘shot in the arm’ of cheaper sterling. In all the sterling countries, the task requires retrenchment and economy in public outlay for current and capital purposes, and some restraint on the total spending power to get rid of inflated costs and prices. These missing measures are the foundation on which all else must The Times emphasises that the people have still not been told in practical terms what the last and most strenuous laps of British national recovery must mean to them. “It is this continuing gap in the Government’s policy which gives the strongest justification for calls to summon Parliament soon to hear the Government state its case and declare its intentions,” The Times adds. “Also, it is this gap which has most weakened the Ministers themselves in their dealings with bewildered and impatient trade unionists.”