Chancellor Denies Any Inflationary Trends

Northern Advocate, 28 April 1944, Page 4

Chancellor Denies Any Inflationary Trends

(Rec. 12.15 p.m.) (8.0. W.) RUGBY, April 27

The Chancellor of the Exchequer (Sir John Anderson) replying to the Budget discussion in the House of Commons, said he had every reason tp think that the House received favourably the proposals for the 20 per cent, initial contribution towards capital expenditure on plant and equipment. He believed that this provision would be found a most potent influence in putting the nation more on a level with other industrial nations in the modernisation of plant and buildings. Referring to tpe question of price stabilisation. Sir John said this was the only feature in the Budget statement which had been criticised to any substantial extent. He appreciated the grounds lor criticism. It had been said that he had started processes by which prices and wages were going to cha tf e each other up a vicious spiral. "I have nothing of that sort in mind.” said Sir John. "All I suggested is a slow, reluctant movement, prices dragged [up after wages, but still left far behind. I made no attack on wages or wage rates. I made it clear that what I had to say applied equally to all items of costs which go to raise prices. “I made no threat. I tried to indicate a warning. It is not quite fair to suggest that I am starting a process of inflation even on a modest scale. I am not threatening the stabilisation policy. I am not departing from it." The Chancellor said he did not contemplate any change in the eo r t of living of the poorest people, and proposed to watch very carefully movements in food items and the cost of living index.