Devaluation Is Big Swindle, Red Says

Northern Advocate, 26 September 1949, Page 5

Devaluation Is Big Swindle, Red Says

LONDON, Sun. (11 a.m.).—By devaluing the pound the British Government was trying to put across the biggest swindle in history, said the general secretary of the Communist Party (Mr H. Pollitt) tonight, speaking at Sheffield. He claimed that the Government was trying to persuade the nation that devaluation was the only way to solve Britain’s economic problems.

This, he said, was untrue. Devaluation was a signal for fierce cut-throat competition for the limited markets of the capitalist world. “Sir Stafford Cripps’ claim that sacrifices would be shared equally was blown to smithereens last Monday by the disgraceful exhibition outside the stock exchange, when £150,000,000 was raked in in a' few hours by speculators,” Mr Pollitt said. He added that when Parliament met this week it should be bombarded by workers’ demands for a policy that would protect living standards and prevent mass unemployment. The mass of unionists should demand higher wages. Go-slow moves and official and unofficial strikes should receive every support. , NO MAGIC WAND The alteration in the exchange rate was no magic wand which would get Britain out of her troubles—it was just one of those things that had to be done, said Mr Attlee, at a Labour rally at Llandudno. The alteration (ho did not use the words “devaluation” or "revaluation”) had been made by Britain herself uncompelled by anyone. He added that while there must be increased prices for some commodities there was no occasion for general prices increases. The alteration would spread “the load” fairly over the whole nation. He condemned “mischief-makers” who only wanted to bring Britain—and particularly the Labour Governmentdown.

He emphasised the need for increasing production, lowering costs and improving selling methods. The Government and the people must cooperate. UNPLEASANT SCENE

“There was an unpleasant scene this week in the city with the gamblers in gold shares,” Mr Attlee added. “There are still people who think of nothing but selfish profit. There arc workers who are led away into unofficial strikes, and there are—far worse—those who deliberately seek to cause them.”

The Prime Minister said there was no occasion for general price increases.

It was every citizen's duty to cooperate in preventing inflation. In the sphere of Government activity all economy consistent with efficiency must be made. This did not mean a stupid cuttingdown of services. The social services were an economically sound investment, for health was a national asset. ADDED BURDENS The windfall on Argentina’s existing holding in sterling, which has to be written up because of devaluation, the increased cost of her meat exports to Britain during the next four months, and the increased cost of dollar wheat, are not the only such burdens that devaluation has imposed on Britain, says Reuters financial editor. Guarantees similar to those granted to Argentina were given on the sterling balances of Portugal and Persia. They are estimated at £70,000,000 and £40,000.000 respectively. If those figures are correct, they must now be written up to £101,000,000 for Portugal and £57.500.000 for Persia. The extra lump of £17,500,000 to Persia is less serious than the additional burden of £10,000,000 each year which devaluation is likely to impose on the current costs of the AngloIranian Oil Company, in which the British Government is the majority owner. • .

The senior liaison officer of the United Kingdom Joint Services Liaison, Mission (Group Captain R. L. Kippenberger) will shortly return to Britain. He will be replaced by Group Captain M. L. Heath, who is arriving with his family at Wellington in the dominion Monarch on October 13.

Tin Down In Dollars Op in Sterling

LONDON, Sun. (11 a.m.).—Sales of tin, which were suspended after the announcement of the devaluation of sterling, will be resumed by the Ministry of Supply tomorrow. The price of Straits tin, for sale in the United States, will be reduced from 103 cents to 95 cents per lb. c.i.f. New York.

The price to other customers will be the equivalent price in sterling, namely £739 a ton ex smelter. The Ministry of Supply price for standard domestic and export tin will be £750 a ton.

The new price of tin in Britain may affect a large range of commodities in which tin and tinplate are used, notably canned foods. “STEP IN THE DARK.”

Sir Robert Barlow, chairman of several metal companies, said: “This is one of the unforeseen implications of devaluation.

“It is an amazing thing to me that it should be necessary to increase the price to your sterling buyer and, at the same time, decrease it to your dollar buyer.

"It is another indication that the Government took this step completely in the dark.”

The Ministry of Supply announced today that it intended to discontinue the bulk purchase of tin as soon as alternative arrangements could be made.