TRADE RECESSION

Grey River Argus, 12 February 1938, Page 11

TRADE RECESSION

BRITISH UNEMPLOYMENT. A sign that “trade recession” is on Britain’s doorstep is supplied by the recent unemployment figures. But the November figures for Great Britain showed an increase of unemployed of 108,954 over Octobers The total for November is still below that of a year ago, but only by less than 70,000. Usually, al this time of year, unemployment figures register little change.

On the day that these unemployment figures were announced, the Press reported a speech in Birmingham by Reginald McKenna, chairman of the Midland Bank and former Chancellor of the Exchequer, in which he said: “Britain is not heading for a slump.” The popular Right-wing Press also whistles to keep up its courage and announces all is well. The liberal Press, represented by the “News Chronicle,” says: “There is no slump The Government must see that no slump comes,” and gives advice as to how to keep the wolf from the door There is less optimism expressed, however, in more responsible' journals. The “Economist,” for example says: “This month, unfortunately there is no chance of explaining the unemployment figures away. It has been appreciably more difficult,,, since the publication of these figures to deny the existence of a recession in British trade.”

The “Times,” in a gloomy leading article, says: "The unemployment figures for November are not pleasant reading. They confirm tendencies which were less certain in the, October figures. There is a decline in industrial activity which can be attributed only in part to seasonal influences, for it is widespread industrially and geographically.” So widespread are the figures of increased unemployment that a rise is recorded in every district, except South Wales, where they are already enormous. Heavy metal industries are more or less holding their own, but this is largely due to the huge rearmament contracts now being carried out. These, in their-turn, are causing r. shortage of raw materials for other industries, which means more unemployment in these and a rise in the price of domestic articles. The steady rise in unemployment of the last three months has been accompanied by a rapid rise in prices of food, clothing, and all consumers’ goods. ‘