The energy that has been displayed by the Government and its press in squeezing the last ounce of comfort out of the February trade figures is a token of how weak the economic situation really is. For some time every event on the economic front has been subjected to similar frenzied interpretation — the Beaverbrook press proclaimed the January import figure as if it was the aim of economic policy to maxi~ mise imports,while the bank rate riso produced the following Evoning Standard headlines "Dank Rate Doosts booming Britain," as if the rise was not meant to have rather the opposite effect. As for the February figures the most objective judgement on them was passed by the Stock xchange: the-Times City page reported that the February returns "though showing a considerable and encouraging improvement on the alarming January roturns, fell perhaps a little short of expectations and some of the carlier gains were lost.
Perhaps of more lasting significance than one month's trade returns were two reports which concerned the structural weakness of the economy at the presont time. Statistics released by the Bank of England revealed the following intornational position, Short term liabilities are running at £2,462 million (excluding subscriptions to the International Monetary Fund) compared with gold and convertible currency reserves of just over £1,000 million, Tho Statist commented: "We can now see moré clearly what a weak position the UK has been left in on account of official short torms assets and liabilites by the growth of sterling balances and other commitments....On the long term account, too, the Government comes out heavily 'in the rod with debts of £2,640 million to bo set against assets of only £1,069 million ~- especially when it is borne in mind that the assets figure is largely made up of loans to developing countries which in many cases we would be fortunate over to soe back," In its February issue the Federation of British Industries Review carries an article on the quality and modernity of the physical equipment of British industry concluding that "an altogether too high proportion of the machine tool population was of advancing, if not indeed venerable, years." In fact, the article states that both Government inducements and the spur of recent industrial booms"have failed to convince industry of the need to replace its machine tools and the age of UK machines is now much higher than that of our competitors."
What io the implication for the left of the in-built defects of the British economy today? Firstly it means that in the event of a Labour Government the seriousness of the situation itself will help make clear the inadequacy of the timid policies of the Labour right. This should be an excellent context in which the left can press immediate programmes that lead first to structural reforms and finally to a challenge to the prop~ erty system itself, Above all the loft must be vigilant in ensuring that the problems of DTritish capitalism are not solved at the expense of the working class, Iixtensive re-invostmont in industry and on expansion of the social services will all have to be financed. Those who should pay are not the workers who hay. only suffored from Britain's economic stagnation and backwardness but the capitalist interests who are responsible for ite
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