Welsh Journals

tal or drive capital into industry. The Midland Bank has indicated some effects of the reduction. The Bankers' Industrial Development Company is a long overdue machine for financial assistance to industry. But in no sense is it a National In- vestment Board, fed by the stream of capital which flows into the public departments, and watered by potential loans which could be easily secured from the general public for the development of national productive new enterprises of a new character. While no doubt the bankers' organisation will be able to do useful work, the planning of a nation-wide push to improve our national equip- ment and to relieve unemployment is outside the scope and functions of such a body. In short, the 'Economic Advisory Committee should be asked to consider especially the question as to whether the time is not ripe to launch a hundred million national loan for definite long period productive purposes, to reduce unemployment and to start industry on the road to some sem- blance of prosperity. It is also time to ask this Committee whether it is in favour of a National Investment Board, and an active and not a passive policy on the part of Government, of whatever political complexion, for the right amount of currency required, and for the right use and direction of what capital is available for investment, after the big corporations have finished financing their new requirements from their reserves,-a policy which is increasingly practised, and calling on the public to provide small amounts of preference capital at guaran- teed rates of interest. We are favourable to the view that an ad hoc authority, an Investment Board of the Nation, charged with the definite task of resuscitating demand in the home market, and based on the re-organisation of our indus- tries, is urgently required. We fail to see why such a Board cannot carry out definite tasks in this country such as the Municipality of Vienna did for its housing of the working classes. Simi- larly for roads, for electrical development, etc. A Fuel and Power Trust working under such a Board could chemicalise the coal industry, if necessary, and amalgamate all the present com- peting companies in each coalfield, and gener- ate and distribute electricity to all consumers by arrangements made with the Electricity Com- missioners. The Ruhr area in Germany has been so organised three years ago. Why can- not it be done here? A National Investment Board of this type would be able to secure new capital for pro- ductive old undertakings which could show reasonable prospects of success, and provide a demand for labour. It would also support by loans all public concerns engaged in works or services of national importance; finally it could set up ad hoc Trusts or Statutory Companies or Corporations to carry out any necessary undertaking of a public character. If it secured powers to scrutinise all new investments of British capital it would also be able to divert to our domestic undertakings those loans and in- vestments which might react in a harmful man- ner on our industrial organisation. Without putting an embargo on any foreign investment it would carry great weight, and its influence would be strong and pervasive as to the direct- ion of any new capital. The adjustments in our industrial structure would then be carried out scientifically with due regard to the whole, and moreover it would be possible to iron out, as far as this is possible, internal fluctuations due to a moving price level up or down, in order to keep it as stable as possible. We are not satisfied that this is being successfully carried out under our present sys- tem of control, improved though it may be and actuated by the highest motives of public ser- vice. The external situation would have to be carefully watched, but the interests of our work- ing population and our great industries can claim as adequate attention as, let us say, the State of San Paulo. To cope with the problem of unemployment, and to reduce it to manage- able proportions, we require a world stable level of prices, a carefully regulated and scientifically controlled currency, and a careful disposition of bank credit and investment capital for national ends. Above all, we must re-organise our sinews of power-our technical equipment on a national basis. We are not at all satisfied that these are being done under our present methods. EVENING is still; The air breathes scented peace, Tranquillity Its stillness echoes ripened love, And calls the stark and silent pines To witness passion dead. J. ALBAN EVANS,