The midland journal., 1946-11-29
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al BY GEORGE S. BENSON
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Experiment

Naturalization of industry is the
big issue in England. The Labor
government, elected last year on a
naturalization platform, is proceed
ing to carry out the program as
rapidly as possible. Some sectors
of American thought are advocating
the same measures for our country.
For this reason it is my belief that
many readers of this column will
find interest in the progress of this
socialistic program in England.
First step was the naturalization
of the Bank of England, upon which
the government long has relied for
more or less of its own financing,
particularly has it obtained large
short-term loans for years. The
banks stock belonged to private in
dividuals and had been paying about
80 interest. The government did
not evaluate the bank, but simply
took over all the stock, giving to
all former owners bonds equal to
the market value of the stock and
bearing 3 per cent. The invaluable
hidden assets which invariably ac-
crue to such an institution went to
the government without remunera-
ton to the former stockholders.
Danger Present
The Bank of England also was
given power to require other banks
of the country to accept such bank
ing policies as it might decide
to issue. Some experienced bank
ers fear that the day may come when
the government, because of extern
sive deficit financing, will advocate
unsound banking policies which
would react badly upon the fnan-
cial status of the United Kingdom
Policies already adopted by the
bank have led to the disseminating
interest formerly paid on deposits
and savings accounts.
Industries slated for nationaliza-
tion by the Labor government are:
O Transportation, including rail-
roads, transport, buses, street-cars,
canal barges, and coastal shipping,
(2) Utilities, including production
and distribution of electric power
and the operation of water systems
throughout the Kingdom, (3) The
iron and steel industry, and (4) Civil
aviation.
Complications in Steel
Perhaps the most complex prob
lens for naturalization are pre-
sented by the iron and steel indus
try. This is highly skilled craft,
requiring skills and know-how to be
found only in the present manage
ment of the industry. Many impor-
tant but closely related industries in
manufacturing, from needles to To-
comotives, would be affected.
One government economist told
me that the government would take
over production of steel and iron up
to the point where the metal was al
lowed to cool, regardless of the form
in which that might be. However,
another economist stated that this
policy would draw the line Of de-
marcation for nationalized industry
right through the center of some
plants which were accustomed to
using a continuous process until
metals were actually shaped into
materials for sale.
Some observers in England think
difficulties will be so great that the
government finally will give up the
scheme of Matchmaking the iron and
steel industries. In fact, the gov
ernment has recently indicated the
scheme would be postponed for at
least four years. One steel opera
tor ventured that production per
man-hour would certainly go down
when and if the government took
over. One of his reasons was that
the workers would be at points en-
tirely too far removed from the
source of authority. He also af-
firmed that in his opinion workers
did not like the idea of nationaliza-
ton.
Though this is the hunting season