Absorbed by 1939-40
London, Apr. 17.
Emerging from a silence imposed by prolonged illness, Mr. John Maynard Keynes, leading British econ-arnist, writing in "The Times" today, urges complete readjustment of the British mental outlook concerning the economic implications of the Government's crisis in finance.
The Chancellor of the Exchequer, he says, should assume a cessation of abnormal unemployment during 1939- 40 and a gradual increase in the national income by eight per cent. This year's loan expenditure, he continues, will be at least £220,000,000 above that of last year.
Private investment for the purpose of carrying out Government orders, he says, may be an important offset of the increased adverse balance in trade, The increase in primary demand may be £200,000,000 meaning an increase in the total demand of twice of this amount.
British Government loan expenditure will be eight per cent. of the national income, he adds, or proportion ately twice that of the public works expenditure in America.
Such an expenditure, Mr. Keynes says, will require the services of about a million of unemployed, which means that prospects for home industries will be better than they have been for years.
Apart from the labour problem, he goes on, balance of foreign trade must be the chief occupation.
Mr. Keynes, in praising the efforts of/Mr. R. S. Hudson, Secretary of the Board of Trade, to adapt British export methods to the times, expresses the opinion that the handling of foreign trade cannot be left to individual enterprise unaided.
Moreover, Mr. Keynes advocates tightening up of the embargo on the export of capital by British nationals, without interfering, however, with bona fide trade transactions or transections on behalf of foreign holders.
The whole country's liquid resources, he says, must be concentrated to meet the adverse balance in trade, and for political loans.—Reuter.
Courtesy visits were then exchanged between Captain Turner of the Astoria and Captain. Hidetsuna Yagi of the Kiso.
At 10.30 am., Captain Turner and his staff landed at the pier, which was packed with over 15,000 people, including some 200 foreign consular officials and residents, 1,500 secondary school boys, 4,000 girl students and 4,000 other school children.
Driving along a route thickly lined with people, Captain Tuner and his staff paid courtesy visits to the Governor of Kanagawa Prefecture, the Mayor of Yokohama and the Commissioner of Customs.
Mr. Renzo Sawada, the Vice-Minister for Foreign Affairs, and chairman of the Funeral Commission, next went aboard the Astoria.
Text read from the printed page and cleaned; old type leaves the occasional error.