Keep Costs Down Or Face Unemployment

Northern Advocate, 24 September 1949, Page 6

Keep Costs Down Or Face Unemployment

DEVALUATION TESTS WORKING CLASS

LONDON, Fri. (11 a.m.).-— I The Government did not devalue the pound because it was anxious to, or sought to, do it, the Lord President of the Council (Mr Herbert Morrison) told a Labour rally at Filey, Yorkshire, today. “Devaluation, and consequent export problems, are the test of working-class statesmanship at this juncture of our history,” he said.

• “If the working class is public spirited and rises to the occasion it will be a great thing for the wellbeing of our country. “To maintain full employment we must keep our costs low, particularly in the export trade. It is a choice between keeping costs down or returning to the horrors of substantial unemployment.'’ Mr Morrison' expressed the Government’s thanks for the attitude adopted towards devaluation by the Trades Union Congress General Council and majority of trade union leaders. There had never been any hesitation in the mind of the Government that the request thai Parliament snould uc recalled should be answered in the affirmative. “I feel sure the Government will come out of the debate with credit and that the country will be all the better for the debate having taken place,” he said. MAY BE CENSURE VOTE Mr Attlee will follow up in the Government's "hot gospelling” campaign for devaluation in an address at a rally at Llandudno, North Wales, tomorrow, and Sir Stafford Cripps will meet Trades Union Congress leaders at a private meeting on September 26. Political observers think Sir Stafford can swing the TUC leaders behind the ■ Government, but they point out that the congress, having only advisory functions, cannot apply sanctions to its 8.000.000 membership. Reuters says that Mr Churchill and his supporters might, in certain circumstances, move a vote of censure against the Government on the general handling of economic policy when Parliament meets next week. However, it is thought that they will not formally condemn the Government for devaluing sterling. It is believed that Mr Attlee, who wllL probably wind up the debate on September 29. will 'emphasise to his supporters that they are voting on what is tantamount to a motion of confidence, and it is hoped this will persuade Labour back-benchers who are critical of devaluation because it raises the cost of living to vote solidly • with the Government. LEFT-WING ATTITUDE The House of Lords will debate devaluation on Tuesday and Wednesday. The Independent Labour group in the House of Commons —D. N. Pritt, John Platts-Mills, Lester Hutchinson, Leslie Solley and K. Zilliacus —today gave notice of motion urging the Government to prevent a rise in the cost of living by ending the cold war, ending arms expenditure and by trading with Russia. Their motion said: “Devaluation will not help to bridge the dollar gap, will actually create unemployment instead of preventing it. and will inevitably lead to a substantial rise in the cost of living.” . .. The steps.suggested, said the rpotion, “alone .can save the country from disasters that are threatening.” ARGENTINE DEMAND. The- British Ambassador in Argentina, Sir John Balfour, will receive instructions at the week-end to resist an Argentine demand for 42 per cent more for its meat because of sterling devaluation, said the Evening Standard.. The Argentine demand would mean an increase from 10£d to 15d a lb. in the- price of Argentine meat to the British housewife. The Swiss Cabinet today issued a second statement that the Swiss ■ franc will not be devalued. The Swiss Cabinet also announced immediate withdrawal of all restrictions against payments from Switzerland in United States dollars. The Government of Southern RhOr desia has ordered freezing of all prices at August levels excepting

livestock, eggs and securities normally sold through stockbrokers. The order is described as temporary, and designed to provide a breathing space of three or four weeks during which devaluation implications will be studied. INDIA ACCUSES PAKISTAN. In New Delhi today authoritative quarters described as entirely baseless Pakistan's charge against India of “unilateral action” in devaluing the Indian rupee. These quarters said Pakistan had infringed the payments agreement between the two countries by not devaluing. The upheaval created by sterling devaluation had practically subsided on the London Stock Exchange today. Uncertainty and caution had replaced eager buying enthusiasm and operators now await the re-opening of Parliament next week. The recent firmness of British Government stock has been noteworthy. Prices recovered from the lower levels fixed by market arrangements and finally showed fractional gains over pre-devaluation levels.