The 34 per cent rise in coal prices—the principal home-produced raw material—between August, 1939. and February, 1941, has been caused very largely by the increase in wages and other costs; the levy of 3d. per ton of coal produced. imposed at the beinning of January to compensate in-Gividual coal-mines for loss of trade caused by the fall in exports, has contributed only a fraction of the increase. Steel prices have advanced by 41 per cent, but the greater part of this rise has been due to the increased cost of imported materials. The rise in cement prices by 21 per cent. too, can be attributed largely to higher costs. It is in agriculture that the prices of basic materials have shown the heaviest increase; thus. the Ministry of Agriculture's index of the prices of farm crops rose by no less than 66 per coat between August. 1939 and September. 1940. A large part of this increase is due to the raising of minimum weekly wage rates by an average of 12s. to 48s. in July, 1940. but an additional and very important price-raising factor hes been the m-couragement of the éxtenbion of cultivation by the fixing of prices "re-numerative" to farmers. As in the case of imported raw materials, Government policy at home has been Gictated chiefly by needs.
In general, the Government, in its raw material purchasing policy. both at home and abroad. has been influenced more by the need to secure adequate supplies than by considerations of price. And. as a result. the prices paid have no-doubt often been higher than they would have been if economy had been the chief criterion. Thanks to the stability of world prices. however, the prices that have Fad to be paid for overseas supplies ave not been excessive. But if a more marked advance is to be avoided in the future. closer collaboration between tke British and American Governments, which will soon be the principal buyers of raw materials on the world markets, seems essential.
Text read from the printed page and cleaned; old type leaves the occasional error.