Evening star., 1949-06-05
Labor Party Session
To Discuss Britain S
Growing Difficulties
~ the Asseeio.eS Press


LONDON, June 4.-Difhculties
on both the economic and labor
fronts form themes for discussion
at the annual conference Of Brit
aims ruling Labor Party. opening
Monday at Blackpool.
A nationwide rail strike threat
ems the country. The board which
runs the state owned roads Is get
ting tough. Arltagonism between
the union workers and the So
cialist bosses Is growing.
Export trade is dropping. Prices
are high. Buyers are getting
scarce. Some are waiting out III.
mors. oficially denied. that the
pound will be cut from Its pres.
ent value of S4.03.
Stock exchange prices have hit
their lowest point since the war
except for a two-day dip In Sep
tember. l947. that followed the
end Of the American loan and the
COQVeTtlDlllty cFl6lS.
Security Prices Drop.
Lack Of confidence In the trade
and financial outlook remains the
dominant theme on the stock ex-
changes" the Financial Times
said today in an editorial.
Another Financial Times writer
giving advice to investors, said
II have yet to meet anybody who
believes the basic trend can be
anything but downward"
The steel industry. due to be
nationalized next under Labor's
program. is setting new records
for output. But one Of the ma
tion's leading makers Of ships and
machines, Harland g. Wolf. said
its work has been hamstrung by
shortage Of steel.
Steel prices are high. Authori-
tative sources. both in the gov
ernment and in the steel indus
try. say 80 to 20 per cent of the
steel-making capacity Is 50 OUT
moded it ought to be discarded.
Industrial output is well above
prewar. Rises are not UP to the
governments schedule, however.
and prices Of production have
climbed more swiftly than output
due to increased wages, coal prices
and transport costs.
Imitation Held In Check.
Much Of the output rise has
been accounted for by increased
use Of manpower. A policy Of
full employment" Is one Of the
prides Of the Labor government.
Imitation has been held in check
reasonably well.
The nations economies car,
Sir Stafford Cripps. still keeps
taxes nearly at wartime levels as
q continued bar to imitation.
Cripps says he Is ready at any,
time to act to keep things going
II q slump develops. There seems
little doubt. ct least among non
government experts. that o recess
sion already has begun.
That might mean an emergency
budget by autumn to change tax
ing and spending policies.
Within q year-perhaps sooner
II q crisis really throws q monkey
wrench into governmental ma
chinery-these questions must 90
before Britain's 25.000. 900 voters
for . choice between more social
ism or q return TO the Conserva-
tive Party Of Winston Churchill.
Restiveness 70 Be Expressed.
Trade unions will I'LL about 20
per cent Of the seats at the
Blackpool conference. Increasing
restiveness over the governments
wage-freeze order and its harden
ing attitude toward strikers un-
doubtedly will be sharply ex-
pressed.
The powerful Trades Union
Congress, some Of whose leaders
sit on the party's executive COM
mittee. is angered at Cripps' re-
fusal to trim purchase taxes and
thus cut the cost of living.
A preliminary platform, already
published. calls for considerably
more naturalization, including
such prosperous businesses as in