Armament Profits The boom in armament shares on the London
Stock Exchange comes at an appropriate moment to reinforce the arguments of those witnesses who have been urging • lately before the Arms Traffic Commission the need for removing or limiting the element of private profit in the arms industry. The boom rests at present on rumour and more or less intelligent anticipation. It is known that a vast armaments- programme is in prospect. Heavy contracts will inevitably be given to private • firms, and it is obviously the belief of investors that the profits of such firms will increase substantially. No doubt they will, though the Stock Exchange pendulum has a habit of swinging unduly far in both directions. Fortunes have already been made out of the fantastic rise in prices before a single order has been placed or contract form sent out. All this is, of course, perfectly legitimate. Certainly there is nothing to blame the armament firms for. But the demonstration of the number of people financially interested- in the increase of armaments, and the extent of that interest, is sig- nificant. Obviously, moreover, the cost to the nation will be grave if the profits of the private manufacturers arc to be on the scale suggested by the boom in shares. Ministers have given assurances, none too adequate, that costs will be rigorously scrutinised, at any rate in the case of aircraft orders. They might reasonably - be pressed further on the point.
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