Wealth creation & financial manipulation

May I bring to readers attention the Macmillan Committee Report of 1931...

Further to the responses to D G Nicholas (Letters, PE January) regarding the economic past and future of the UK may I bring to readers attention the Macmillan Committee Report of 1931. After the crash of 29 the British Government decided to examine why other countries were better able to withstand the situation. The report revealed that in both the USA & Germany there was a strong relationship between the banks and various manufacturers. In the UK that was not the position. The banks had no specific interest in supporting UK companies. The report recommended the creation of an Industrial Bank funded by the 5 clearing banks which would more fully support and help develop UK companies. This bank was not created till post war when 3i’s (Investors in Industry) came into existence. A later attempt was NEB.

Even with the support of the banks and Roosevelt’s “New Deal” employment in the USA did not return to the level of pre 29 till 1942 – after Pearl Harbour. In Germany it resulted in Hitler being elected.

Mr Simpson in his response did not mention the massive loss of the taxation base within the UK as a result of the “sell off” of British companies.

If one walks through St Stephens Hall in the Palace of Westminster one will see a painting of Sir Thomas Roe & the Moghul Emperor (1640). Roe made a speech in the house at this time (1600's) pointing out that Britain’s income must exceed its expenditure & the benefits from creating wealth within the country. A lesson we seem not yet to have learnt. More recently we have ignored the advice of Charles Dickens and Correlli Barnett.

We are in dire need of more Wealth Creation & less Financial Manipulation.

Mick Pitt, Kingston, Surrey

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