Evening star., 1949-12-14
Cripps Held 5anguine
Over Welfare State
Checks on Spending
knowledge Of Finances
Must Be InstiIIed Into
Democratic Peoples
Bv David Laurence

Democratic Peoples
Bv David Laurence
With all the talk of deficit
financing and unbalanced budgets
in America, something very per-
tinent has just been said by Sir
Stafford Cripps, the British sec
retary Of the treasury, about. the
habits of democratic peoples.
Sir Stafford was asked several
questions by Charles H. Kline,
associate editor in London for
United States News and World Re-
port, and one of these queries was
as follows:
1.-THE American people now are
debating whether to go in for
more and more social security
measures. AS general PROPOSE
ton, although politically popular,
do you figure that social security
can be made economically sound
in a democracy where people can
vote themselves bigger and better
benefits?"
Must Exercise Restraint.
Sir Stafford's reply was this:
THAT depends upon the re-
sponsibility of the democracy. OF
course, If a democracy takes so
irresponsible a view of its obli-
cations that it only regards the
Treasury as a deep till into which
1t can perpetually dip its hand,
I should personally suggest giving
up democracy.
"But that is not how we look at
1t in this country. We feel that
it is quite possible. by giving
people the information and the
knowledge of economic facts. to
instill into them a realization that
they themselves are in fact paying
for their own social benefits by
taxation and by other means, and
that therefore they must exercise
restraint in the way in which they
utilize those benefits and also in
the amount of them they demand
There is a tendency. of course.
as I told Parliament last year
and the year before, for Parlia-
ment, which has always been re-
garded as the guardian of finance.
rather to become the perpetual
demander Of fresh expenditure.
But that I think is only tenn
porary phase. I believe that any
democratic assembly of that kind
must and will realize its RESPONSE
bilities on these matters
Certainly the so-called welfare
state" of which Sir Stafford
Cripps is the economic head Is
faced with the very difficulties
that confront the American peo-
pie and, if the spending proclivi-
ties of the national legislature are
unchecked, there is no way to as
sure solvency. Sir Stafford may
be a bit optimistic as to the capac-
ity of self-governing units to re-
strain their spending. especially
when politics makes votes by
means of constant government
handouts, but it is reassuring
nevertheless to observe that in
Britain, as elsewhere, the dangers
of reckless spending by govern
ment are being recognized.
Reproof to Americans.
incidentally, in the same copy
righted interview. Sir Stafford ad-
ministered what might be con-
strued as gentle reproof to those
Americans who have been berat-
ing planned economy on this side
of the Atlantic, but who have been
offering blueprints for the econ
omy of other countries to which
Marshall Plan aid is being given.
The question and answer on this
point are particularly enlighten-
ing. The query was:
In the United States there is
sometimes the argument that the
economic situation abroad would
right itself If left alone, but does
there actually appear to you to be
any alternative to government
planning and considerable direc-
ton Of the British economy"
To this, Sir Stafford answered:
mo, I think so far as our econ
omy is concerned-I cannot, of
course, judge Of other peoples
economy-it is absolutely essen
tial that there should be some
direction from the center. Indeed,
every international arrangement
one Is asked to come to must in
evitably entail q certain amount
Of direction.
TN other words, you cannot
internationally plan unplanned
economies. It Is a contradiction
in terms. Planning internation-
ally. which is being so forcibly
impressed upon us by our Ameri-
can friends, implies that the gov
ernments of the different coun-
tries must be able to carry out by
direction, or by planning. the
various requisites of the interna-
tional plan. Otherwise, interna-
tional planning, of course, falls to
the ground"
There is a veiled warning in
this to America. It is, in effect.
suggested that the United States
without any planning" is never
theless trying to direct the plan
ming" by other countries, whereas
the British worry is whether
Americas economy may really run
into major difficulties because it
isn't planned"
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