Evening star., 1948-07-25

y
ship projects, and already is plann
lively set for May, 1850.
The Labor cabinet which took over
the management of Britain's affairs
on July q, 1945, has had tough sled
ding.
Britain lives by international
trade. The trading accounts were
totting up in the red before the war.
Lost markets, sold investments, and
wars wear and tear on an already
declining industrial machine left a
legacy of myriad basic troubles.
There's improvement all along the
i line noticeable now, but problems
are still present.
Must Raise Exports
/ The biggest Is the trading deficit
still running on at the rate of more
than one billion dollars year
That's the hole that British work.
ers. helped by American food anc
machinery, must plug in the next
four years.
British production Is now II pei
cent higher than it has ever beer
and 80 per cent above the 1916 level
| Despite rising production, Britain
has been trapped by prices for fooe
and raw materials that have climbed
faster than the sales prices OF Brit.
ish exports.
Britain's leaders know they mus
raise exports another SO per cent ir
the face Of increasing buyer resist.
ance. The price Of failure to mod
ernize industry and raise its export
output is hardship and perhaps eco-
nomic collapse.
Both Sir Stafford Cripps, the ma
tons economic chieftain. and For
eign Secretary Ernest Bevin have
warned that American aid will not
allow any sudden betterment of
Britons way Of living.
One SOLDERING thought to them is
that Congress will have to approve
the money for American aid every
year.
The danger of runaway imitation
seems to be gone. Retail sales are
running at high levels, but the
people are having to dig into the
family sock to keep buying.
Lower Glasses Better Off
They have cashed a net of more
than 100000 pounds $4,000. .000)
worth of post Office savings certifi-
Gates since Sir Stafford brought. in
his "disinflationary' budget last
April. Main feature of that budget
was q sharp increase in taxes on
unearned incomes and considerable
lowering OF taxes for the lower and
middle classes.
! The middle class voters held the
balance of power at the polls, and
Labor Party politicians have in
creased the ardor of their courtship
Of these votes noticeably in the last
several months.
The lower classes, especially the
workmen whose average earnings
are only about five pounds $500 a
week, are probably better off than
they ever were before the war. The
middle classes have been feeling the
squeeze of fixed incomes and rising
prices.
| Now things look bit better. Prices
are coming down for some things
Price controls have held the line
with only small upward slips. One
reason for that is rising food sub.
sides, which now amount to 470,-
100000 pounds (s1,8So,o 100000 a
year.
Housing is much improved. Ir
every town and city from London tt
Scotland the train traveller can see
housing projects nearing completion
Industrial production in genera
is reaching record peaks. Automo'
biles roll off production lines faste1
than ever, although car making her,
has not reached anything like De-
troits speed and efficiency.
! Steel flows from mills at NOR,
than 100000 tons a year, an all
time high. Talk of "bottlenecks
and. "priorities" is seldom hears
now.
Miners Hitting the Target
Britaln's slowly but steadily in.
creasing staff of coal miners is hit.
ting its target. After six month!
of this calendar year, they were &
bit ahead OF schedule on their goa
to dig 211 900. 900 long tons this year
Reorganization OF the coal mine.
Is underway. More and more ma.