Armaments and Profits Mr. Baldwin's repetition, on Monday night, of
his pledge to ensure that no excess profits shall be made out of the increase in armaments was too vague to dispel anxiety. The rearmament programme, whether necessary or not, has been a shock to, many people, and has destroyed the hopeful illusions which others, especially the young, have clung to since the War. Any evidence that rearma- ment is not only necessary but profitable will turn the shock into indignation. The Stock Exchange boom provided such . evidence. Though Sir William Brass claimed in Parliament that share prices have nothing to do with costs of production, he will hardly deny that they have much to do with profits, and especially with expecta- tion of increased profits. Nor will he or anyone deny that already a great deal of money has been made out of the rearmament proposals. The Stock Exchange boom appears to have broken temporarily, and there can be small syMpathy for speculators who have been caught. But it will certainly revive unless • Mr. Baldwin soon gives a detailed account of the measures he proposes to take, with provisions for costing and supervision, and with a clearer definition or " excess profits,"
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