Crisis Finance A week before Sir John Simon's speech, Mr.
J. M. Keynes has published in The Times two articles which merit the closest attention on the financial problems of The coming year. His most striking statement is that " the problem of abnormal unemployment will cease to exist during the financial year 1939-40," and all special plans and provisions for dealing with it should be dropped "as a waste of time and money." This conclusion, which is hard to resist, is based on the fact that loan expenditure by the Government will be between E35o,000,000-£400,000,000, and L200,000,000 more than the previous year. At a very conservative calculation, the additional demand may be expected to create work for at least 75o,000, and the problem of abnormal unemployment is likely to give way to problems of acute labour shortage. Under such conditions the arguments for a Ministry of Supply, already overwhelming, become irresistible. Mr. Keynes prefers to call ita Department of Co-ordination, and assigns it especially the function of handling the problems of labour shortage, of trade union restrictions, migration of labour, and reducing unessential services ; the task of en- couraging exports, Which will be at a disadvantage, of estab- lishing priorities in demand, and preventing exports of capital are all of primary importance.
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