BANKR UPTCY
IT Would probably have been better if Mr. Macmillan had not made his Newcastle speech, or exhortation, last week. There Was little point in making the journey and the fuss, since he had nothing to say. The appeal for wage restraint will, of course, be Completely ignored, in the same way that all similar appeals re been ignored over the last five years. This is what they deserve, because trade unions do not exist to keep wages down ;"--an elementary fact which is still not grasped by the Treasury. If that were the end of the matter, then the speech could be simply dismissed as a bore. Unfortunately, however, these damage in a number of ways. For people who follow the economic situation at all closely they are evidence that the Treasury is intellectually bankrupt, and unable to shoulder its responsibilities. To the rest of the country they add further layers of self-deception to the thick covering which already protects public opinion from the implications of Britain's steady retreat as a world economic power.
This kind of speech also damages the prestige of the Govern- ment by leading it into absurd situations. In an attempt to get the trade unions to recover the Treasury's chestnuts from the of plateau of stability' of prices over the next year. Within four days higher prices were announced for coke and coal, and it is virtually certain that electricity and gas will cost more soon in many areas. The same day brought the news that cinema seats would cost more, and many more things may become more expensive in the next few months.
As a public relations gimmick the Chancellor's plateau has naturally fallen a bit flat. All that is happening is that rising prices are strengthening the case put forward by the dirigistes of all kinds for a return to physical controls. To avoid that major political setback surely the Government could get up off its knees and stand up to its problems. It might even see them better if it did.
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