from a Special Correspondent. In recent weeks there has been a number of small items in the press speculating about the possibility of a wage pause (euphemism for freeze), These have been denied by government spokesmen, but none too strongly. Last week Samuel Brittan, economics editor of The Financial Times, had a long article entitled 'The Choices Before the Government' (F.T. Wed. June 10th). This was in essence a call for the Government to implement a wage freeze now. Quite correctly he pointed out that many of the measures taken so far to deflate the economy had not begun to bite because of various time lags, etc, However, the possibility of the balance of payments deficit being corrected by the end of this year looks more and more remote, Brittan says, "But in present British circumstances a simple increase in Bank Rate could be misinterpretated abroad as a sign of panic. Memories of the unsuccessful Bank Rate increase in November 1964 are still alive, Just to raise the Bank Rate on its own would therefore be a risky proposition. ... " Further on he says, " ... most of the conventional expedients of post war economic policy have already been used with disappointing results. As the root of the present weakening of confidence lies on the wage front, it is natural to look here for action. Any kind of wage pause which looked as if it might have even a partial effect, would be very welcome to the holders of sterling ...." "A wage pause could theoretically be introduced in either two forms. One alternative would be to introduce legislation ...... A more likely alternative would be to postpone, say until the end of the year, all further increases in the public sector and exert strong pressure on private industry to do the same. No doubt too, as in Selwyn Lloyd's time, companies would be asked to defer dividend increases and some gesture might also have to be made on prices." For a cynical appraisal of the needs of capitalism this would take some beating. It will be noted that what is urged is a real wage freeze, but only a gesture on prices, and of course profits would not be touched, but the consumption of them merely fleferred. What makes Brittan's article significant is that until he took up his present position, he was one of George Brown's advisers at the D.E.A. One is left wondering as to whether Brittan was inspired to write his articles to prepare the right climate of opinion among the smaller firms and investors, There is no doubt that the present strike of the seamen is presenting some problems for the Government , being bent on its present neocapitalist policies. Being unable or unwilling to take socialist initiatives it is faced with the same difficulty of any capitalist government in this sort of crisis, how to get the workers to carry the can, Their acute problem is that the workers in this country are well aware that at the moment they don' tt need to accept this passively. With the labour market tightly stretched, the 'diseipline' of the threat of unemployment is not present. It will be very 4nteresting to see the reactions of those on the Left who have been urging the the trade unions to adopt 4 more ' sophisticated’ epreeen and not be so — militant', if the wage freeze is attempted. On Brittan's advice this w mean the sane sectors that were attacked by the Tories, i.e. nurses, sate ote nationalised industries, etc. Personally I doubt if one can expect sophisticated' behaviour from anyone when they see the axe descending.
ther evidence were needed of the true intent of the present Incomes Readies: treatment of the seamen should have given it. The — allegedly tries to peg earnings at the present (scandalously) low gre a fact it means that earning power is steadily eroded. A wage freeze a context of rising prices and profits, can only be viewed as a wage cut.