Gadarene Progress
Page 30
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ONE of the best-known men in financial circles, and one whose comments are looked upon as carrying great authority. is Mr. 3_ Gibson Jarvie, the chairman of United Dominions Trust, Ltd. He may be said to have his finger on the pulse of industry, therefore, any comments from him as. to financial and business, conditions are• worth attention. His speech made at the annual general meeting of the Trust, held on August 14, was particularly illuminating..
He pointed out that since 1945 we had spent our substance with prodigal hands, squandered our capital, borrowed from our friends, and lived on credit and charity. We had a _fantastic debt, external and internal, and were living far beyond our means, Taxation of individuals and industry had long passed the bounds of economic safety or even possibility if essential future commitments were to be met. We had reached a condition of diminished returns,having regard to retained income after the deduction of tax and lower purchasing power. The cost of projected rearmament had scarcely begun, yet we were committed to social services beyond our capacity.
Errors Admitted The Chancellor of the Exchequer had twice, since his Budget speech, admitted that his estimates were wrong and that the general position had worsened. Whilst urging greater productivity, demanding that there must be no wastage of labour and proposing to reintroduce controls, he had taken not one practical step which would lead the Nation back to solid around. Instead, he had played for votes by penalizing the thrifty and pandering to the thriftless. The Government had failed in everything except "soaking the rich." That had been accomplished magnificently Without making the poor richer.
Nationalization was an abject failure. Even a prominent trade union leader had said that if further nationalization be proceeded with, the Socialist Party would, at the.next Election, receive the biggest whacking it had ever had.
The Government's trading adventures had all failed, and the taxpayers were meeting their cost. To-day, under nationalization and the efforts of the " planners," we were short of coal, whilst the miners were dissatisfied; gas and electricity supplies were more costly and less reliable; the inefficiency of nationalized transport services by rail and road had become a costly and tragic joke. The bitter lesson of experience had clearly told us that if we desired efficiency it was to be found only in private enterprise.
So far the Government and its followers had been living on the fruits of private enterprise, and were largely destroying these, but the death of the private system would inevitably mean that of Socialism, because when the " host " dies, sooner or later the " parasites " perish.
Competition Essential Mr. Jarvie added that world history had proved again and again that the individual was more important than the State, that prosperity and greatness would follow only when there were enterprise, personal ambition and responsibility, independence and freedom. Competition was essential. Good work justified satisfactory reward, and this, or much of it, must be retained by those who earned it. A soft and secure life never built strength of character or of body. In the welfare State strong men with courage, quality and principles met only discouragement, frustration and rank injustice.
On the matter of limiting profits, he denied the possibility of ascertaining if a profit or loss were to be made. Many companies did not even know what this might be until they were in the next financial year, whilst in many highly geared concerns the turnover of a month might make all the difference, for results were affected by a great many different factors.
A grave crisis was developing, yet the Government appeared to be determined to punish or destroy every man or business fulfilling his.or its function successfully. The" Weary Willies" were the pampered pets of a Government and Party which had long outstayed their welcome