Finance—Public & Private
Recovery Must be Slow
BY their announcement that work was to cease on the new ship for the Atlantic service, the directors of the Cunard Steam Ship Company appear to have administered as severe a shock to the country as any sustained since the gold standard was suspended in September. It is possible that surprise, added to the fact that the announce- ment was made so near to Christmas, increased the depres- sion with which it was received ; but there are very good reasons why this particular development should have created an unfavourable impression. It indicates clearly that, despite recent favourable views as to trade po,,,i- bilities under conditions of currency depreciation, the recovery of this country from depression must be a long and painful process. Very little consideration is necessary to show the immediate effect of the Cunard decision. The workers actually engaged in the construction of the new vessel have been thrown out of employment, the shipyard con- cerned has lost income, and the same applies to the labour and capital in a wide range of industries employed in the manufacture of machinery and fittings. The -result of the suspension, however, does not., end with those directly employed, for it is bound to be reflected in some increase in unemployment pay, and a decline in the purchasing power of the districts in which the work was being carried out. As it spreads, the circle of depression certainly loses force, but its effect is felt nevertheless.
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