FROM WAR TO PEACE

Timaru Herald, Volume CLVIII, Issue 23281, 17 August 1945, Page 5

FROM WAR TO PEACE

PROBLEMS LOOM IN AMERICA Gloomy Economic Outlook Controls To Be Eased

By Telegraph—N.Z. Press Assn.— Copyright NEW YORK, August 15. The American civilian can begin to look forward to the swift return of many of the pleasures and most of the essentials which he sacrificed in an effort which first defeated Germany and has now forced Japan’s capitulation, states the Washington correspondent of the “New York Times.” Almost immediately, many goods of which the home front was deprived for the duration will appear in the markets and stores. On the other hand absolute normality will be delayed for several months. However, durable goods such as washing machines, refrigerators and vacuum cleaners will immediately swing into production. Gasoline rationing will be ended Immediately, and shoe rationing will soon be removed. Food rationing will continue probably for some time. Tight price controls will be maintained on goods for which the demand exceeds the supply, but price ceilings on luxuries and frivolities will be lifted. Difficult Economic Problems The end of the war confronts the nation with the most difficult economic problems it has faced since the 1932 depression. Most experts agree that although war mobilisation was a gigantic task it will prove relatively simple compared with the difficulties of unscrambling the war economy without serious economic effects. Deflationary tendencies will become formidable. Senator A. Mead’s War Investigating Committee recently gloomily predicted that the country would be in a sorry state economically if the war ended at an early date. Administration leaders are keenly aware of the economic dangers ahead and officials are striving- desperately to head off excessive unemployment, deflation or inflation, but the temporary unemployment of at least 8.000.000 will probably be unavoidable within the next six months.

The Manpower Commission announced that all manpower controls which the Government has exercised over employers and employees have been swept away. Employers are now free to hire men where and when they please. Newspaper, radio and mail censorship will now cease. The Office of Censorship said to-night that it. was getting ready to go out of business. Canadian censorship officials said that it was useless to continue the censorship now that the war was over. A spokesman for the Ottawa censorship said that Canada would follow the United States lead rather than Britain’s in lifting the censorship. The United States Navy lias announced the cancellation of contracts totalling 6.000,000.000 dollars. This is additional to ..the 1,200,000,000 dollars cut in the shipbuilding programme.

Review of War Contracts The British Cabinet will make an immediate review of war contracts. Main contractors whose contracts have been cancelled or reduced will shortly be told that work should continue until instructions are received

NATIONALISING BANK OF ENGLAND British Government Plans Outlined By King By Telegraph—N.Z. Press Assn.—Copyright LONDON, Aug. 15. The British Government’s plans for the switch from war to peace were outlined by the King to-day in his speech at the State opening of Parliament. One Bill will provide for the public ownership of the Bank of England, and another for the nationalisation of the coal mines. One of the Government’s most urgent and vital tasks would be to increase the number of houses by every means possible. The war-time organisation for the home production of food would go on, and some of the new services would be expanded. There would be a Bill to reorganise air transport. The Government would seek the repeal of the Trade Disputes Act, but carry through social legislation already in hand, such as the proposed National Health Service. His Majesty welcomed the Potsdam plan to set up a council of Foreign Ministers, and said Parliament would be asked to ratify the United Nations Charter. He made special reference to India, and said that his Ministers would do their utmost to bring about an early realisation of full self-government there. Royal Victory Drive The Royal procession for the State opening of the new Parliament became in effect a Royal victory drive. On their return to Buckingham Palace, the King and Queen and the two Princesses responded to the calls from the huge crowd by appearing on the balcony. After the ovation the King received the Prime Minister (Mr Attlee) and other members of Cabinet, i with the three Chiefs-of-Staff. Then half an hour later he received Mr i Churchill. This interview was followed I by more cries by one of the biggest crowds on record, estimated by one correspondent at 250,000. Appearing again, their Majesties were given a “frantic reception.”

Both Houses of Parliament passed resolutions congratulating the King on final victory. The Prime Minister told the House of Commons: “We have had a change of Government, but In the midst of change there are some things that remain unaltered. One is our loyalty to his Majesty. I believe the harmonious workings of our Constitution will be an example of stability in a disordered world.” Mr Churchill seconded the motion, saying: “Monstrous tyrannies which menaced our life have been beaten to the ground in ruins, and a brighter radiance illumines the Imperial Crown."

More Petrol for Canada Canada has discontinued petrol and fuel oil rationing. Dr. Soong Flies to Washington A Moscow message says that Dr. T. V. Soong (Chinese Premier) left for Washington by air. He declared at the airfield that relations between China and Russia were firm and amic-