TWO ASPECTS

Timaru Herald, Volume CLVIII, Issue 23288, 25 August 1945, Page 5

TWO ASPECTS

Investment P’annng

Chancellor’s Reply To Query (5.5 p.m.) LONDON. August 23. “There is no intention to compel anyone to invest their resources in one way rather than another." said Dr. Hugh Dalton. Chancellor of the Exchequer, replying in the House of Commons to Mr Churchill’s request for a clarification of a phrase in the King’s Speech, “the effective planning of investments.” “Investment planning has two aspects, the physical and financial,” he added. “It is the Government’s policy on the physical side to secure that available labour and materials are used in accordance with whatever plans may be required for the purposes of the employment policy and national development. On the financial side control demands on the capital market will be exercised according to the same principles. The proposed legislation will not provide for the exercise cf financial control over the use by business undertakings of their own cash or other existing resources. I do not contemplate any substantial change in the present arrangements regarding the relations between banks and customers. Borrowing from banks is* already—in certain circumstances—subject to the capital issues control. My predecessor had already asked the banks to observe the same principles regarding granting advances as apply to the granting of Treasury consent to new issues.” The City Editor of the “Daily Telegraph,” commenting on the reply, says it seems clear that the Government intends to direct the flow of labour and materials as far as may be judged necessary to ensure full employment of the limited financial powers corresponding to those physical controls already included in the distribution of industries scheme. The vital points raised in Mr Churchill’s question and many others being discussed by industry and city remain unansw~ered.