The Cut That Wasn't
Those daily newspapers which, drawing upon information supplied by an active imagination, recently forecast cuts in imports of tobacco, petrol, films and wine, now have the dual satisfaction of knowing that the cuts were not made and that the reasons for not making them now, as given by Mr. John Boyd-Carpenter, Secretary to the Treasury, were very sound ones. There are a number of particular reasons, such as the fact that the tobacco purchasing season is just over, that films are the subject of an agremeent under which British as well as American industry may benefit, and that much imported petrol is essential to industry and the forces while rationing is expensive of British manpower and resources. And there is one very powerful general reason, which is that all these items are revenue producers, whose high market price includes a large element of tax going to the Exchequer. They, therefore, mop up large amounts of spare-purchasing power, and their primary effect is anti-inflationary. Whether their secondary effect is anti- inflationary depends, of course, on the way in which the Govern- ment spends the revenue which it draws from these deep wells. But there seems at least a chance that the present Government will spend it more carefully than the last one. In the circum- stances Mr. Boyd=Carpenter's careful assurance that cuts may still liave to come was hardly called for, apart, of course, from the pleasufe . it may give to non-smoking, teetotal, non-filmgoing pedestrians.
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