FINANCE CONTROL

Gisborne Herald, Volume LXXII, Issue 21801, 25 August 1945, Page 5

FINANCE CONTROL

GOVERNMENT AIMS LABOUR & MATERIALS LIMITED MONEY POWERS (10 a.m.) LONDON, Aug. 24. There is no intention to compel anyone to invest resources in one way rather than another, said the Chancellor of the Exchequer, Dr. Hugh Dalton, in the House of Commons, replying to Mr. Churchill’s request for a clarification of the phrase in the King’s speech, “the effective planning of investments.” Dr. Dalton added that “investment planning has two aspects, physical and financial. It is the Government’s policy on the physical side to ensure that available labour and materials are used in accordance with whatever plans may he required for the purposes of the employment policy and national development. On the financial side, control demands on the capital market will be exercised according to the same principles. The proposed legislation will not provide 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 banks and customers. Borrowing from the banks already—in certain circumstances —is subject to 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 that it seems clear the Government intends to direct the flow of labour and materials as far as may be judged necessary to ensure full employment and limited financial powers corresponding to physical controls already included in the distribution-of-industries scheme. Vital points were raised in Mr. Churchill’s question and many others, which are being discussed by industry and the City, remain unanswered.