(c) crown copyright
Catalogue Reference:CAB/24/164
Image Reference:0084
f l i l S DOCUMENT IS
THJS
PROPERTY OP HIS B R I T A p I C MAJESIY'S GOVHIHMMT)
gjjj 0 R E T
CP. 83 (24).
O i B I l i x
13
UNEMPLOYMENT COMMITTEE.
*rw?t Interim Report on Unemployment.
COMMITTEE'S
TERMS OP
REFERENCE.
At their Meeting 6h the 23rd January i92.4u,(Uabinet
1.
7(24) Conclusion 3a) the Cabinet after constituting the
Unemployment and Housing Committee as follows:Mr. Sidney Webb
y
A
(President of the Board of Trade)
(In the Chair)
Mr. Ciynes
(Lerd Privy Seal)
Mr. Philip Snowden (Chancellor of the Exchequer)
Mr. Tom Shaw
(Minister of labour)
Miss Margaret Bondfiold (Parliamentary Under
Secretary, ^Ministry cf Labour)
Mr. John Vifheatley
(Minister of Health)
Mr. Charles Trevelyan (Minister of Education)
Mr. P.W. Jowett ( J i r B t Commissioner of Wcr&s)
Mr. Walter R. Smith (Parliamentary Under Secretary,
Board of Agriculture)
Mr, James Stewart (Under Secretary of Health for
Scotland)
Mr. H. Gosling
(Minister of Transport)
other Ministors, such as the Heads of the Service
Departments, being invited to attend for consultation
when the business rendered i t desirable,
with Mr. R.B. Howorth, as Secretary,
agreed that the Committee should meet at onoo with power
tr appoint Sub-Committees in -order to investigate a l l
aspects of the question of Unemployment and the connected
question rf Housing and to make definite recommendations
to tho Cabinet as te what schemes for dealing with these
subjects a r e practicable and desirable.
The Unemployment and. Housing. Committee at their
meeting on the 25th January 1924 (C.U. 73rd Conclusions (i
appointed the following Sub-Committe-e, to examine the
Unemployment portion of the Committee's Terms of
Appointed -t Cabinet S(?4) Conclusion 7o
v
Reference
Labour
The M i n i s t e r
o f jStesfotatac
(Chairman)
The" P r e s i d e n t o f t h e Board o f Trade
(ex o f f i c i o )
The M i n i s t e r o f
The F i n a n c i a l
Transport.
Secretary
to
the
Treasury
The P a r l i a m e n t a r y S e c r e t a r y to, the
Ministry o f H e a l t h s
Tiie P a r l i a m e n t a r y S e c r e t a r y t o . the
M i n i s t r y of Labour.
"The Unemployment S u b c o m m i t t e e have h e l d
m e e t i n g s and have c o n s i d e r e d a l a r g e
several
number o f Memoranda
and o t h e r documents c i r c u l a t e d t o them, b y the
Departments c o n c e r n e d .
of
tho s i t u a t i o n ,
After
I t may be c o n v e n i e n t
them a. b r i e f
situation,
relief
i n i t i a t e d by
before
unemployment
schemes f o r
the
previous
and now i n o p e r a t i o n ,
and l a s t l y
and recommendations o f t h i s Committee
a l l e v i a t i n g the p o s i t i o n .
wish t o /
t o t h e Cabinet t o have
a summary c f the v a r i o u s
of unemployment
suggestions
Cabinet;
Statement as t o the p r e s e n t
Administrations
review
the Unemployment Committee- submit
the f o l l o w i n g R e p o r t t o the
8.
a careful
At
the o u t s e t
the
the
for
Committee
emphasise the fact that in the brief time at their
disposal i t haa not been possible, for them to examine in
detail numerous proposals and suggest ions which have been
submitted to them Tut a gorioral ourvey cf the problem
hftfl l o i the Committee to certain conclusions which are
set out in the following pages,
EAST I .
The Present Unemployment Situation.
3.
According to the latest available figures namely
thoBe
for the week ending January £let 1924, of the
l i v e register ef unemployed at ths Unemployment Exchangee
in Great Britain cojoparod with the figures on the
corresponding dafree
1921-1922
is as follows:­
24-th January
22 January
1922
Men
Women
Girls
l,
21st January
1924.
1,125,440
897,716
64,974
52i771
40,389
3c6,5*7
21*,20G
23^,446
46,198
44,430
39,130
1,389,321
Boys
1923
.
1,438,^41
o?, 66o
:
1,215.681
The percentage of unemployment in the insured
industries at the end of:November 1 9 2 1
,..
November 1 9 2 2
...
November 1 9 2 3
...
. ' . ' *
*
*
.
V E T
*
*
A
.
4
,
4
...
T . *
... ...
16-5
12-4
11*4
,
7'ID
The l i v e register shows the number of persona
i'
registered at the Exchanges as desirous of employment
whether as claimants or non-claimants under the
UneKployttect Insurance Aet.
These figures give as
accurate a picture as is practicable of the
etat1stleal position of unemployment.
It is true
that domestic servants, agricultural workers, a
certain number of juveniles, workers who having
or having been refused
exhausted /benefit do not think I t worth while to
maintain registration, and mmbera of "professional
trampers" may not be included, but save in the
ease of agricultural workers who may be thrown out
&f employment owing to the effect of the slaughtering
dairy herds through cattle disease which may eause
serious local unemployment, the experience of the
Ministry suggests that no large addition needs to
be mode to the Live Register to see the picture
properly.
IFIGUKES 05"
fHEMPLOYKSBT
'I VARIOUS
4.
The only trades of outstanding importance
in which employment can now be said to be good
are the eoal trade where only 2'4$ of the
industry were unemployed at the end of'the
year and the tinplate and steel sheet industry
where about
3*6$
were unemployed.
In the railway carriage
* 4 ­
/
The l i v e register shows the number of persons
registered at the Exchanges as desirous of employment
whether as elaimaats or non-claimants under the
UnaBployaecLt insurance Act.
These figures give as
accurate a picture as is practicable of the
s t a t i s t i c a l position of unemployment.
It is true
that domeetie servants, agricultural workers, a
certain number cf juveniles, workers who having
or having been refused
exhausted /benefit do not think it worth while to
maintain registration,, and ambers of "professional
traajpers" nay not be included, but save in the
ease of agricultural workers who may be thrown out
frf employment owing to the effect of the slaughtering
! * dairy herds through cattle disease which may cause
serious local unemployment, the experience of the
Ministry suggests that no large addition needs to
he made to the Live Register to see the picture
properly.
4.
Ihe only trades of outstanding importance
in which employment can now be said to he good
are the seal trade where only 2*4$ of the
industry were unemployed at the end of the
year and the tinplate and steel Bheet industry
where about 3*6$ were unemployed.
In the railway carriage
-
4 ­
/
and
oi
wagon
building
unemployment
unskilled
can
be
to
most
however;
be
of
low
34.2$,22*2$
rate
and
fairly
the
is
apart
Manufacture
(17.1$)
Road
Contracting
(18*9$)
Pottery
Linen
(15,1$)
Lace
Trade
Food
Confectionery)
In
the
the
the
lower
is
seasonal
skilled
the
trade
It
is
are
very
of
high
in
and
1
Transport
(16.2$)
(14.6$)
Tailoring
trades
(other
work,
but
general
Steel
Works
Industry
Hat
than
in
where
Woollen
(12.4$)
country,
Public
Cotton
(16,5$)
the
worst,
out
(18 '6%)Iron
Trade
of
(12*0$)
and
and Cap &e*
Bread
Milling
&o.
(14.0$).
building
unemployment
to
(9,9$)
rate
and
1
and shipping
also
ironfbunding
(13.5$).
industries
bad.
is
and
Industry
painters
the
the b u i l d i n g
respectively
engineering
Worsted
In
engineering
21*1%
industry
from
staple
still
of unemployment
Trade
carpet
good.
great
marine
and
the
employment
employment
shipbuildings
the
is
workpeople
said
In
and i n
as
trades
high
as
depression
occupations
in
the
general
13.6$ but
In
this
painting
the
overall
is
rate
due
principally
(26."yO .
Industry
the
of
In
rates
mast
are
much
Carpenters
Bricklayers
Plasterers
Out
kuilding
of
the
trades
labourers,
4 1$
2,0$
3.9$
97,450
workpeople
at
end
28,510
miscellaneous
Mas''ii3
Slaters
Plumbers
0
the
were
group
of
of
3.5$
5.4$
6.0$
unemployed
December,,
painters
1923,
and 24,242
occupations.
in
the
54,686
were
in
a
of
were
The
which
following
districts
unemployment
greatest
or
is
may b e
heaviest
and
classed
ss
distress
those
in
therefrom
very;considerable.
Shipbuilding,
Barrow
The
Clyde,-
Tynoside,
The
VJear
Shipping
and
and
The
Tees,
Shipbuilding.
Mersey,
The D o c k D i s t r i c t s o f
London,
P o r t s m o u t h and S o u t h a m p t o n and
P l y m o u t h and
Devonport.
Heavy
Metal
Chatham,
Districts,
Sheffield
District
The
metal
heavy
districts
(Wolverhampton,
B i l s ton
and
West
the
of
the
Hid l e n d s ,
Bromwioh,Wednesbury,
Black
Country
generally)
Others,
Ipswich
and
Lincoln
Cumberland
Dundee,
Por
5.
Norwich,
"various
difficult
to
(Agricultural
Merthyr
reasons
mate
any
it
vltb
indirectly
In
consequence
Government
to
relieve
doubt
that
substantial
bear
in
mind
such
as
the
and
Export
for
the
l i t t l e
the
one,
At
that
relief
effect
whioh
of
in
of
always
been
estimate
of
work
the
aggregate
the
same
certain
under
the
time
unemployment
those
highly
shipping,
is
heavy
found
the
directly
measures
number
It
is
number
or
taken
There
most
is,
is
by
however,
a
necessary
to
important
exceptions,
the
facilities
legislation,the'
unemployment
Dartford.
unemployment.
with
Credits
has
obtained
arrangements
shipbuilding,
in
have
in
Tydvil,
reliable
Q(£ u n e m p l o y e d
no
Engineering),
(generally).
Trade
existing
have
had
stilled
metals
particularly
schemes
comparatively
industries,
and
textiles,
severe.
PART
II.
Important Unemployment Relief Arrangements
approved' by previous Admlnls'ti*a'li6ns 'aW
" 'novi in operstionT
In the following parsgrephs the Committee summarise
b r i e f l y the principal arrangements for Unemployment
Relief approved by previous Governments.
The principal Contracting Departments have under­
E13BATI0K
$OVERMEN T
S$5.
taken to accelerate Government work during the present
winter to the f o l l o w i n g extent:£1,010,000
Admiralty
War O f f i c e
Office
Commission,.,.
i s d o u b t f u l whether t h i s
200-000
1,000,000
£ i i , 7^5,000".
Post O f f i c e .
It
515,000
o f Works and F o r e s t r y
aggregate figure
w i t h a d v a n t a g e , be a p p r e c i a b l y i n c r e a s e d .
to t h e above t h e l a t e
C o n c l u s i o n 4)
the
could,
In addition
Government approved ( C a b i n e t 5
i n s e r t i o n in the
fiavsl
Estimates
(24)
for
1924-5 of the sum c f £5 m i l l i o n s f o r t h e c o n s t r u c t i o n
of
Cruisers.
Tenders f o r the v e s s e l s have not y e t been
i n v i t e d , and w h i l e
i t should be noted t h a t some l i t t l e
must e l a p s e b e f o r e
c o n s t r u c t i o n can commence i t must n o t be
forgotten
t h a t from the p u r e l y unemployment p o i n t
time
of
view the o r d e r s w i l l be the most u s e f u l work which can be
undertaken in the s e v e r e l y d i s t r e s s e d ,
industry.
shipbuilding
In each of the years 1920-1, 1921-2 and 1922-5
large sums have been a l l o c a t e d from the Road Fund towards
vilorkB
which rave been piit In hand a t an.earlier date than
1
otherwise would have been doiae In order to afford employ­
ment.
Towards earlier programmes certain contributions
were made by the Exchequer, the balance of the money
being fouiad by the Local Authorities,
The estimated
aggregate coBt of the works In these programmes Is now
put at £25 million, of which, In round figures the
State bears £15 million an'd the Local Authorities­
£11 million.
In addition t6 the above a programme of special
works In r e l i e f of Unemployment was sanctioned last
Autumn under which the Rosid Fund w i l l contribute
£8 millions to works estimated to cost £ l l f million.
In a l l , therefore, the total sum sanctioned iti respect
of which contributions have been promised or allocated
amount
c
from the Road Fund/to £37 million, towards whioh
figure the total Gdvernmetit contribution i s about
£22 million.
.
.
.)
Works assisted by the Ministry of Transport
taclude the constriction slid maintenance Of arterial
and other roads and the construction, maintenance
and repair of bridges etc.
Among other important :
schemes, which have recently been approved and on
/which
which work i s now p r o c e e d i n g or w i l l
(,
started,
shortly
ara c e r t a i n G r e a t e r London A r t e r i a l
Schemes t o
c o s t £3 m i l l i o n ,
be
Road
t h e new E d i n b u r g h -
Glasgow Road,
and t h e 'Blrmingliam-Wolverhampton Road.
Certain large
B r i d g e Schemes a r e under
t h e l a y and Q u e c n s f e r r y B r i d g e s w i l l
Parliamentary
require
powers and n e g o t i a t i o n s for
Menai B r i d g o a r e i n p r o g r e s s , and
b r i d g e I s under
Several
consideration;
t h e new
the d e s i g n of
considerations
large
schemes f o r A r t - e r l a l . Roaxla harve- "been.
p r e p a r e d and c o n s i d e r e d by the M i n i s t r y
which would n o t r e q u i r e
whioh no d e f i n i t e
of
Transport
Statutory Authority^
financial
but
M a n c h e s t e r - L i v e r p o o l Road.
of
are
b a s i s of a Government
5D per cent.,
Other
the
T h i s scheme would c o s t
of £3 m i l l i o n and n e g o t i a t i o n s
conducted on the
for.
p r o v i s i o n has been mado.
The most i m p o r t a n t o f t h e s e i s t h e scheme f o r
a total
the
contribution
schemes a r e the
North-Orbital
Road round London, and t h e C h e r t e e y Road,
t o c o s t £5 m i l l i o n and £1,500,000
being
estimated
respectively.
I n a d d i t i o n t h e r e a r e a l a r g e number o f
a p p l i c a t i o n s from L o o a l A u t h o r i t i e s
miscellaneous
whose schemes
a g g r e g a t e about £5 m i l l i o n ,
Nature-., cf
tne Head
Euad
Grants.
The Grants g i v e n by t h e M i n i s t r y
cf T r a n s p o r t
are
-
based on the c o s t
of
the Works and v a r y n o r m a l l y from
50 per fcent t o 65 per c e n t ;
In very exceptional
Grants have been g i v e n up t o 75 per
In further
w i l l be n e c e s s a r y
and p o s s i b l y f o r
if
the
must be assumed*that
to c a l l upon.the Treasury,
n o t i n the immediate f u t u r e ,
cases
cent.
s u b s t a n t i a l commitments of
Road Fund ara e n t e r e d i n t o i t
for
substantial
a considerable period,
it
although
advances,
Such advances
r e q u i r e d o v e r a p e r i o d o f more than one y e a r a r e
effect
.
short term b o r r o w i n g by the Road Fund,
in
IjSWBTJOr&M
OOMUrfTBB.
UP
Grants
of
to
bummer
Com I t t e e
work
'.-nd
costing
least
ss
of
1923
dealt
approved
much
of
of
more
the
with
Un e m p l o y m e n t
nearly
grants
£40,000,000,
m-n-months
manufacture
As
had
lw.d
over
1,500,000
st
the
in
respect
providing
direct
schemes
of
schemes
tely
*PPRO3FCIMN
local
indirect
10*000
employment,
employment
in
'.md
the
m^teri^LSE
regcrds
the
present
winter
the
position
is
ss
follows.-?
Circulars
INTER WORKS
were
issued
last
year
to
Local
Authorities
[925-24.
inviting
fa)
them
to
indicate
the
extent
to
which
they
would.
GENERAL.
he
prepared
if
assistance
the
works
Winter
At
the
terms
classes
from
for
same
the
on
time
which
schemes
of
five
to
put
in
hand
relief
of
unemployment
State
were
so-called
years
Local
to
Authorities
assistance
to-be
improved
"revenue
fifteen
in
years
the
the
capital
cost
was
extended
to
all
revenue
producing
terms
as
or
on
the
basis
vtherwise
The
on
half
Further
non
before,,
charges
years
for
the
the
were
by
-
of
to
Local
£24,000,000
on
response
to
when
value
basis
the
the
amounted
loan
basis.
the
to
the
also
the
the
for
by
of
works
certain
increasin
grant
-
of
later
this
workso
works
interest
the
work
were
and
for
sinking
fifteen
loan.
provided
wages
for
cost
Committee s
1
of
granting
of
works
basis
This
assistanc
financed
a
schemes
£13,000,000.
to
of
highly
Increase
the
on
on
the
on
previous
submitted
and
over
£1,000,000
marked
circular
provisional
some
over
was
preliminary
amounting
and
was
circular
submitted
schemes
Committee's
of
of
Authorities
statements
cost
of
the
producing
raised
the
provisional
60$ wages
65$
works
of
to
loan.
response
satisfactory
loan
60$
than
via.
period
sums
of
revenue
of
that
granted
case
period
on
fund
during
informed
be
the
producing"
interest
continued
State
were
would
50^
The
with
1923-24.
the
approved
necessary
the
year,
the
loav
. (
L
As
Q JJ
A
"
0
a
result
Local
forward' d e f i n i t e
January
havo
schevies
schemes
been
to
In
wei*e-,then
asked
and
the
detail
value
of
of
which
£14,193,000
£2,220,000
no
up
the
submitted
approved.,
Authorities
rejected,
less
and
to
than
to
pu; '
v
23th
£21,100,000.
have
been
£4,687,000
'
are
under
consideration.
More
from
schemes
these,
the
considerably
amounted
c)
mi
601- WAGES
are
being
total
the
of
total
received
schemes
figure
under
£12,00 0,000.
On t h e
basis
of
60%
of
approved
for
to
dally,
the
the
but
so
far
Winter
wages
cost
apart
exceeds
1923-3
the
which
value
of
SCHEMES c
schemes
approved
£1,514,000
of
which
£410,C00
of
v
are
the
total
have
under
again
to
a
£455,000
Here
ponding
out
up
28th
January
value
been
amounts
submitted
rejected
or
of
to
£2,577,000,
withdrawn
and
consideration!.
the
figures
period
of
last
year
Provision
is
being
made
p a y m e n t of
grant
on
are
far
ahead,
and
more
are
of
the
being
corres­
received
daily.
I;
ALL
in
the
Estimates
for
1924-25
PXMB&,
to
meet
r-e.aetved'''this""Winter,
practically
or
that
the
total
in
number
Committee
this
the
of
schemes
schemes
grounds' .on!y
unemployment
The
by
two
and
a l l
e g
0
c
t'*
be
have
been
refused
that
they
are
particular
different
Winter
likely
district
schemes
amounts
to
on
unsuitable
is
not
severe.
with
so
far
dealt
2,150
out
of
2,574
received.
The
directjy
in
all
to
The
the
only
whole
from
total
by
amount
the
schemes
624,000
schemes
they
the
of
employment
so
far
being
approved
or
this
to
be
Winter
afforded
amounts
man-months.
assisted
have
been
primary
have
works
point
of
been
of
varied,
marked
view
of
in
nature,'
public
directly
and
utility
on
not
providing
employment
local
.affording
....
unemployment
(e)
ASSISTANCE
TO P U B L I C
-UTILITY
UNDER.
TAXINGS.
given
measure
figures
of
As
of
is
A
such
similar
for
Gas
Electricity
far
dealt
limited
by
limited
the
making
of
The
far
all
industry
j a i l s ,
nature
Water
the
must
cranes
of
in
as
great
as
in
was
such
have'
not
m^re
cases
result
by
other
are
carrying
have
ftf
the
be
received
Statutory
Bodies
Undertakings.and
all
they
affect
the
are
were
the
assisted
a
good
cases
already
not
sc
that
the
dividend.
on
many
this
basis
oases
are
the
the
Iren
and
manufacture
and
girders
for
'
'
steef
of
pipes,
steel
buildings.
-
1
'
sc
received.
in
machinery,
not
been
themselves
being
where
would
from
as
employment
reasr-n
Undertakings
companies
and
in
modified
Dock
schemes
new
a
nature
the
the
unemployment
grant
normally
satisfied
£1,530,000
to
a
Authorities,
cases
about
-
been
likelyfto
the
double
last
practically
of
relieving
paragraph.
relieve
Committee
In
to
to
this
Companies,
in
August
Local
of
and
in
least
rorks
Utility
value
these
at
in
which
dividends
Committee
to
also
own , t r a d e
necessary
has
of
Grants
consideration
In
frame
a
statutes
amounts
under
those
Undertakings.
total
their
preceding
labile
proposals
a grant
but
number
winter
of
with
a
Parliament
years.
and
at
these,
affected
to
Unemployment
as
of
the
this
to
of
in
some
number
the
in
seriously
clearly
to
accordingly
assistance
executed
by
ia
effect
undertaken
out'works
workmen
etc.,'
man-months
industries
work
the
it
persons,
above.
forecasted
departure
form
to
workshops,
figures
To
unemployed
employment
factories,
the
to
2
.
-
:
so
The
Ministry
£250,000,
of
the
this
of
year
now
men
and
for
the
been
commitments
schemes
Ministry's
exhausted.
had
total
of
a
are
total
cost
Tjas t h e t o t a l m o n e y p r o v i d e d
£250,000
financial
1,180
Agriculture's
sum p r o v i d i n g
£305,000.
accordingly
of
Up
employed
to
on
resources
January
these
are
5th
works
for
an
average
for
twelve
we e k s .
Similarly
exhausted
the
and
additional
Scotland
the
ftfoilltrte
Export
the
traders
c; n
them
finance
to
gusrcntee
exported
from
contintied
(a)
of
and
drawn
a
system
Treasury
has
for
been
an
reference
to
by
specific
respect
of
each
specific
Position
which
at
of
but
not
enable
goods
countries
h:::s
been
of
systems
do
to
abroad,
(.i.e,oash
Credits
dis­
"Guarantees",
involve
transaction:
a
Department
(b)
credits
in
in
transaction.
December
Amounts
t a k e n up
(4)
£
approved
two
Yfhereby
means
Government
"Advances"
;
intended
bankers
shipments
the.Export
each
(.3)
the
1
is
ordinary
trade ',
adopted,
superseded
credits
tho
their
to
of
w.".s
of
lances­ 3,164,257
oific
lotions 17,983,832
feral
lits
6,035,287
£35,000
from
sgainst
Britain
Bills)
Sanctions
Caneoiled
of
export
respect
(2)
of
Scheme,-which
facilities
Great
general
separate
Total
Sanctions
the
Oredlta
their
drafts
discounting
£
asked
resumption
obtain
Originally
viz:
has
provision
£40,000.
under
to
Scottish
31,
1923.
Re p a y m e n t s
of Advances,
Bills
paid
end G u a r a n t e e s
Cancelled.
(5)
£
Amounts in
use or
Earmarked.
£
1,412,107
1,752,150
344,790
1,40^,360
9,831,436
5,447,370
3,115,720
5,036,676
3,951,245
695,206
604,089
2,084,042
Maximum E x c h e q u e r
Amount
Balance
in
use
or
contingent
earmarked
availble
liability
26,000,000
.
8,528,078
17,471,922
- 13 ­
i
w 0
LVNTEES UNDER
Under these Aots the a*reasuryis^ empowered, on
Ufi 'EACILITIES
PS, 1921 and
the advioe of an Advisory Committee, to guarantee the
v
'3.
payment of interest and principal, or either interest
or principal, of loans raised in connection with capital
undertakings, provided the loans are expended in such
a way.as to relieve unemployment in Great Britain.
Position at December 31, 1920,.
^
,
£
Exchequer contingent l i a b i l i t y authorised
by Trade Eacilities and Loans Guarantee
Act, 1922 (Session 2 ) , in respect of
capital
50,000,000
Total amouat in respect of Which Treasury
have stated their willingness to give
guarantees
38,205,645
Since November 1923 no further guarantees have been
definitely approved because the Powers of the Treasury
to give guarantees expired on 9th November and w i l l not
be brought in existence again until a new Act has been
passed.
The Committee, however," have recommended to
the Treasury further guarantees in excess of £1,000,000
anci the Treasury have expressed their willingness to
give guarantees in those cages as soon as the necessary
Statutory Powers have been obtained.
One of these
guarantees is to the Government of Lithuania for
£1,000,000 for the construction of certain railways
ohd the construction of grain elevators.
The Committee
have also indioatod to Companies the terms on which they
would be prepared to recommend guarantees.
The t o t a l
amount involved being £4,250,000 the two largest being
the E l e c t r i c i t y scheme of the British Aluminium
Company, and shipbuilding proposals amounting to
£1,700,000
(IiOiUAL '
^iophebi.
In. response to enquiries by the Unemployment
Committee of the late Government., the Colonial Office
recently submitted certain proposals for assisting the
Ill
relief
o f unemployment a t home , and. a t the same time
d e v e l o p i n g the C o l o n i e s and P r o t e c t o r a t e s
By f a r the most important
f o r the construction,
in
Africa.
of these p r o p o s a l s was one
at an e s t - " " t e d
cost
of
£6,150,GOO, o f a Hallway i n Kenya and Uganda t o open
up l a r g e
cotton growing a r e a s .
The l a t e
Government,
on the recommendation of the Unemployment
approved i n p r i n c i p l e
Committee,
the c o n s t r u c t i o n o f t h i s
Hallway
and r e q u e s t e d the T r e a s u r y and the C o l o n i a l O f f i c e
examine the f i n a n c i a l
to
a s p e c t s o f the p r o p o s a l s , w i t h a
v i e w t o the scheme b e i n g f i n a n c e d on terms as
favourable
as the circumstances may p e r m i t .
The p r e s e n t
to
development
Protectorates
intention is that.the assistance
given
schemes i n the Crown C o l o n i e s and
s h o u l d he on the same terms as were
a t t h o r e c e n t I m p e r i a l Economic Conference t o
Dominions, namely the p r o v i s i o n by t h e B r i t i s h
of three-quarters
of the i n t e r e s t
offered
the
Government
for a period of
five­
y e a r s on l o a n s rais9d f o r the undertakings.,
These terms have been communicated to the v a r i o u s
Dominions concerned and a r e
s t i l l under
consideration.
So f a r as i s a t p r e s e n t known no p r o p o s a l s have y e t
been r e c e i v e d from the Dominion Governments or from tho
Dominion S t a t e
Governments,
Various proposals
important
for
and d i f f i c u l t
d e a l i n g w i t h the
problem.of
highly
^ a v o n i l e , Unemploy^.
ment were r e c e n t l y undor c o n s i d e r a t i o n by Committees
of
the l a t e
these
Government.
Committees,
Committee
3
Copies of t h e Reports
C.U.614, have been b e f o r e
the
Beyond a p p r o v i n g t h e p o l i c y o f
Iiocal A u t h o r i t i e s
on the p o s i t i o n
of
to g r e a t e r a c t i v i t y f o r
of
stimulating
pressing
J u v e n i l e Unemployment Centres on
t h e e x i s t i n g b a s i s o f t h e S t a t e b e a r i n g 75$ of
cost,
the l a t e Government t o o k no d e f i n i t e
on the recommendations
the
decisions
c o n t a i n e d i n t h e Reports
in
question,,
ALLEVIATION
OF GEE UNEMPIOYMEKT
SITUATION IN
DIRECTIONS
OTSE-t THAN
SEE ABOVE.
I n a d d i t i o n t o t h e measures euKmariaed a b o v e ,
must,
of
Qpurse, be remembered t h a t v a r i o u s
are i n o p e r a t i o n
t e n d i n g to m i t i g a t e
the s i t u a t i o n ,
In t h i s
made t o m a t t e r s
such as Overseas
and to
of
and t h e a c t i o n
statutory
t h e s e arrangements w i l l
monthending December 3 1 s t . ' ,
1823, C P o f i
must n o t a l s o be f o r g o t t e n
and i m p o r t a n t p u b l i c u t i l i t y
selves,
ment.
that l o c a l
activities
of
of t h i s
be
the
attached.
Authorities
u n d e r t a k i n g s have,, them­
reference
unemploy­
m a y b e made to
tho
c e r t a i n o f t h e R a i l w a y Groups whose
r e c e n t announced programmes o f
aggregate
for
(24),
a c c e l e r a t o d work i n o r d e r t o r e l i e v e
As--an i n s t a n c e ,
ex­
taken by
found in t h e s p e c i a l Report on Unemployment
It
Unemploy­
mainly o f
P o o r Law A u t h o r i t i e s i n persuaaaoe- o f t h o i r
Particulars
relieve
must bo
Settlament,
Settlement
s e r v i c e men, Land S e t t l e m e n t
powers.
arrangements
connection reference
ment I n s u r a n c e , P o s t - w a r
it
about £30,000,000,
it
renewals
etc
i s u n c e r t a i n how much
expenditure r e a l l y represents
rm
work..
THE C(M ITT.K3J^S3TGGESTTX1S^AJP. RECOMMENDATIONS FOR
r^gj^r^j^TP^TKEj W^lib"2MS5rr PROBLEM.
J
In this p a r t of t h e i r Report the Committee submit to the
Qabinet.their views ao t o the biiirt remedies for the Immediate
relief and ultim&te solution of the-unemployment problem.
Owing"'
to the very short time a v a i l a b l e the Committee have not been
able to examine the possibilities and effects of a change of
polioy and for the time being t h e y feel bound to limit their
suggestiona to l i t t l e more than ah sxtensioa. of the chief admin­
istrative measures they have feuiul in operation, particularly
those like the Trade F a c i l i t i e s aulwae and the Export Credits
BCheme, which stimulate the development of normal trade along
normal lines.,
In the past thetendenoy of previous Governments has been
to start by attempting to alleviate unemployment by the provision
Of r e l i e f works of various kinds and after experience has shewn
the difficulty of. solving the problem on these lines
5
to eoncen­
trate more and more on efforts to revive and expand trade.
The
Committee assume, however, that the policy of the present
Government w i l l , from the start, aim at the augmentation of the
total volume of employment and the consequential absorption of
the unemployed in their own trades and industries, and that the
Government w i l l regard the ad hoo schemes for the temporary
i
r e l i e f of the unemployed as of secondary importance and as being'
merely supplementary expedients pending the coming into f u l l
operation of the Government's plans for providing further
permament employment.
I t follows from this that the Government',s schemes should
go on all the year round and that arrangements should not aim, as
in the past at attaining their maximum effect in the winter months!
The Committee think i t necessary that emphasis should be
laid on the Government's polioy not being so much for the
" r e l i e f " of unemployment as for the. restoration of trade.
Specifio schemes recommended to stimulate trade or temporarily to \
absorb unemployed, must be seen in perspective to the Govern­
menfs whole polioy both in foreign ,,and internal affairs for
the restoration of the international trade on whioh we
-1?-
so
1
so largely depend.
The Committee are so impressed with,
the Importance cf" this fact, which has been toe l i t t l e
recognised in the past,
that
they
suggest that the Prime
Minister might take the earliest possible opportunity of
making i t clear that
the
drawing off from the
normal
for extemporised
measures
Government
have no intention of
channels-
which
*?f trade large sums
can only be palliatives,
and that the necessity of expenditure for subsidising'
schemes In direct r e l i e f of
unemployment
w i l l be judged
In relation to the greater necessity for maintaining
undisturbed JJxe ordinary -financial- f a c i l i t i e s - and recourses
:of trade and industry.
RnS
jbSPSCTS
IMG
By the end of 1923, a number of important industries
had made some, recovery (in one or two casqs almost
complete) from the serious depression which prevailed
earlier, and there seems no reason to think that during the
f i r s t few months of 1924, at least, this recovery will
not be maintained.
. Among these industries may be
mentioned coal (which produced more than, in any other
previous year exoept 1913, and exported almost, as much
as in that year);
iron and -steel (whioh Is benefiting
by the recent large orders placed by the railway companies-and
. and the improvement, such as i t is,, in shipbuilding, but
may be adversely affected by intensified competition
from Germany, Prance and Belgium).;
pottery; ' leather;
building material;
and boots and shoes,
With a large
housing scheme in operation,, improvement should spread
material
from the building and building/trades to a number of
other related Industries.
Shipbuilding seems- to have moved from low-water
mark, but the improvement, so far, is slight and there
-18­
i s no.,
is
no
some
is
prospect
of
normal
considerable
also
likely
time
to
maybe
the
machinery,
engineering
least
the
industry
and
the
she?/
have
textile
carpets
not
depressed.
Silk,
than
linen)
fastory.
Russian
The
d&ginisaed
tairurg
very
altered
home
(a,g.
a
attempt
and
Notes
Appendix
II,
flax
and
of
high
the
flax
of
those
but
have
are
to
lace
had
must
industrial
on p a r t i c u l a r
very
more
unsatis­
the
of
of
small
wool
due
to
the
effect
of
an
upward
tendency;
necessarily
situation
elements
is
absence
of
shortage
l e v e l , , with
prophecy
the
which
Hosiery
all
because
glassware
advance,
improvement.;
due
cotton
whole
The
probably
cctton
and
(non-ferrous)
(Dundee-canvas
probable
disturbing
serious
early
sheep
at
urospects
been
cement,
activity.
unsatisfactory,-
of
the
of
at
should
Some
See
flocks
qualified
of
have
chemicals,
are
car',
electrical
which
fair
some
motor
miscellaneous
email
wool
and
and
prices
Any
so
shortage
crop,
of
Jute,
supplies,
American
those
the
light
heavy
for
engineering
though
The
the
industries
promise
are
Belfast
of
signs
to
least
normal,
Heavy
-branches
seems
- The
show
are
reached
General
below
and
unsatisfactory.
trades
come.
being
anticipated.
sections
heavier
metal
to
remain
improvement
textile
activity
might
arise
disputes)
trades
he
either
or
are
main­
be
radically
at
abroad.
annexed.
*
7 99
MEASURES DESIGNED
TO STIMULATE AMD
ENCOURAGE THE
EXPANSION OE
TRADE.
A, Improved
Relations with
Foreign Powers.
The Committee are oonvinoed that no permanent
solution Of the Unemployment problem ia possible
until normal conditions of peaoe have been r e ­
established throughout the world, and
in particular,
until the relations of Great Britain with certain
Foreign Powers whioh, In the past, have been her
important customers, have undergone improvement.
In ­
this connectionj the Committee have in mind the
re-establishment of normal conditions in Europe and
the f u l l resumption of p o l i t i c a l and trading relations
with Russia and certain other countries.
The Committee welcome the decision of the
Government to grant de Jure recognition to Russia as
a f i r s t step in this direction.
At the same time
they are of opinion, from the Information before them,
that the grant to Russia of de jure recognition w i l l
not of i t s e l f have any great Immediate effeot upon
the Unemployment situation because ­
(a)
The maximum amount of trade which
could be done with Russia in any cane
Is not great:
(b)
The problem of finance, without whioh
no large volume of trade i s possible, i s
s t i l l unsolved:
(c)
The revival of trade, must in any case
be a slow and difficult process:
The Committee also f e e l that the ab?*ve general
considerations apply, though no doubt to a much less
extent, to the case
whioh oountry
of Mexico from
at present de jure recognition
i c withheld.
/Tbe Committee
w n, t-j
s5J
The Committee recommend to the C a b i n e t
-
To take note o f the Committee s view t h a t the
most h o p e f u l s o l u t i o n o f t h e Unemployment problem
l i a s i n the r e - e s t a b l i s h m e n t of normal p e a c e f u l
c o n d i t i o n s throughout the w o r l d and in p a r t i c u l a r
i n the removal of a l l impediments, whether p o l i t i c a l
or o t h e r w i s e to the f u l l r e - o p e n i n g of normal
t r a d i n g r e l a t i o n s w i t h c o u n t r i e s where such r e l a ­
t i o n s do n o t a t p r e s e n t e x i s t ,
5
Trade
As i n d i c a t e d above the Committee r e c o g n i s e t h a t
Facilities
a n T l s i p o ^ l schemes f o r the a r t i f i c i a l c r e a t i o n of employment or
CreaTEsu
all
for
r e l i e v i n g unemployment by payment of b e n e f i t can o n l y be
r e g a r d e d as p a l l i a t i v e s
such a r e v i v a l
and t h a t the o n l y r e a l cure
of normal t r a d e a c t i v i t y as w i l l
is
automatically
r e - a b s o r b unemplsped.-workmen i n t o t h e i r accustomed occupa­
tiona.
This r e v i v a l w i l l n a t u r a l l y b e e x p e d i t e d by any­
improvement i n the p o l i t i c a l and economic s i t u a t i o n
C e n t r a l Europe,,
in
A p a r t from t h i s , however,, i t would, not be
w i s e to e x p e c t too g r e a t i m m e d i a t e - r e l i e f
Government measures o f encouragement,,
from
positive
The Committee 's
1
a t t e n t i o n , h o w e v e r , has been c a l l e d to the o p e r a t i o n
two measures;, the E x p o r t C r e d i t s Scheme a n ! the
Trade
F a c i l i t i e s A c t , both of which were e x p r e s s l y d e v i s e d
s t i m u l a t e e n t e r p r i s e of a k i n d l i k e l y to i n c r e a s e
i n the U n i t e d Kingdom,
of
Immediate l e g i s l a t i o n i s
to
employment
necessary
t o extend the p e r i o d during which g u a r a n t e e s can be g i v e n
under both t h e s e measuresi
d r a f t e d extends
The Trade F a c i l i t i e s
the o p e r a t i o n o f
f o r one y e a r , namely,
the e x i s t i n g
Bill
as
legislation
to November 9th 1924, and should
be d e c i d e d to extend the arrangements beyond t h a t
it
date
f u r t h e r l e g i s l a t i o n i n the Autumn would be n e c e s s a r y , jrat
may be v e r y d i f f i c u l t
considerations,.
to enact having r e g a r d t o
Parliamentary
I t has a c c o r d i n g l y been a g r e e d t h a t
B i l l should p r o v i d e f o r
an e x t e n s i o n to March,1925
the
? B 4
I t is also proposed to extend the period of guarantees
under the Export Credits Scheme to September, 1926,
and the period during which the guarantees may remain
In foroe to September, 1950.
No addition i s required
to the sum already available for Export Credits,
The Committee assume that i f the flnanoial
negotiations with Soviet Russia about to be opened In
Lendon are successful they w i l l be followed by the
extension of export credits and trade f a c i l i t i e s to
that country.
No new legislation w i l l be required
for this purpose, and the Committee understand that any
modification of method which may be found neoessary
in applying the Export Credits Soheme to a country
like Soviet Russia where foreign trade Is a Government
monopoly, can be made by administrative action.
The Committee recommend to the Csbinat:­
(i)
(li)
Ehet subject to the examination of the draft
Trade Facilities B i l l by tho Home Affairs
Committee authority should be given for the
introduction of the B i l l in the House of
Commons as soon as possible after the ro­
assembling of parliament.
That the president cf the Board of Trade in
consultation with the Chancellor of the
Sxohequer should be requested to examine
carefully the regulations under whioh export
credits are given, YJith a view to amending
any rules which unnecessarily restrict the
beneficial operation of the Export Credits
Soheme.
K
SMPISE D E V E W M E H T ,
Clause
carries
oat
Kconomia
of
2
the
Treasury
of
addition
Gishu
the
for
being
Colonies
.a p e r i o d
an
the
is
the
net
of
any
amount
not
interest
expended
a
in
Kenya
payable
in
the
to
suggest lens
to
proposals
to
the
in
Ccmaittee
(1)
an
aggregate
could
harbour,
in
a
railway,
near
recommend
the
State
various
which,
capital
are
smaller
bridge
terms.
to
regarding
cost
with
Conference
Cabinet
the
of
the
not,
position
a
Steps
whether
the
above,
development
?
Economic
be
fade
£3,0S0 000.
protectorates
hope
is
of
at
oonsiderati&n
ascertain
undertake
Uganda
Secretary
Empire
involve
imperial
Committee
the
under
extensions
and
deference
further
taken
advantage,
The
proposed
assisting
of
and
on
has
might
expenditure
these
the
which
Colonies
adopted,
works
as
understand- that
proposals
also
to
to
?
' Comittee
if
Empire
conditions
Dominions
loan
railway
£3,530 0C0
fer
a
Imperial
Government
of
Sill
Ong&oitu
In
Basin
of
for
the
tJ^ee^tiar^srs
snah. p a r t
United
to
r
the
by
eertain
to, pay,
years,
Facilities
assisting
to
3i&3eety s
His
Trade
adopted
for
undertakes
exceeding
on
scheme
Subject
exceeding f\ye
of
Draft
Conference
developcsaat,
part
the
make
etc.
The
definite
certain
ft
future.
to
the
Cabinet;^
So confirm t h e d e c i s i o n taken by
tho l a t e Government to a s s i s t
the
l o c a l Governments i n c a r r y i n g
out
the Kenya-Uganda railway
scheme,to
the e x t e n t cf a l o a n of
£3,500*000,
f r e e of i n t e r e s t ' f o r 5 y e a r s ,
re­
p a y a b l e t h e r e a f t e r by a n n u a l
install
mehts s p r e a d ewer a p e r i o d o f
3?
y e a r s and t o a u t h o r i s e t h e pro. s e n t a - '
t i o n t o t h o H o u s e o f Commons o f t h e
r e q u i r e d S u p p l e m e n t a r y Estimate.-.
(2)
To
request
for
cf
the
the
request
to
consider
ing
the
view
be
for
Into
with
operation^
-employment
in
will
the
page
3
of
give
the
their
500.,000
Ministry-
demand
no
work
Its
will
men
for
f"-r
in
of
and
carried
Increased
trades
and
material.
additional
President
large
the
This
men
who
extension
For
Housing
200,000
required,-,
Imperial
adopted
those
the
for
with
would
Sub-Committee
and
very
of
and
demand
the
total
required
of
In
time
building
pool
on
the
hava-exViinat-e-d
building.of
programmes
if
considerably.
probably
long
time
present
be
a
other
present
and
is
Health
v t
available,
the
be
the
in
(C.U.632)
that
of
result
of
a
State
example;
^n
Sub-Committee
Building
houses
figure
of
Trades'
an
additional
has
since
been
SCO,000.
figure
likely
the
Federation
to
This
Is
of
men w o u l d
modified
differ
Report,
opinion
Employers'
assuming,
Free
Colonies
approach­
Government
Housing
requisite
number
the
works,
e
shortage,
trades
the
*?£ t h e
schemes,
terms
for
formally
Irish
that
advantage
undoubtedly
supply
of
!
housing
employment,,
present
the
other
Development
State
Committee s
building
estimates
find
take
the
would
Industries' whioh
The
of
the
the
cf
Conference
proposals
of
whether
consideration
his
Empire
advisability
seeing
ts
for
Committee
Secretary
the
State
of
submit
undertaking
the
prepared
dealing
to
Government
to
Economic
The
for
To
a
Secretary
unemployment
proposals
(3)
the
Colonies
that
wtrk,
e
cf
assuming
building,
some
additional
100,000
and
skilled
alone,
200,000
to
there
large
there
is
painters,
at
maintenance
to
years,
that
and
that
in
likely
the
basis
a. s t e a d y
except
is
trades
and
the
e ,
houses
for
on
be
labour,
labour
building
100,000,
i
side
to
commercial
larger
number
that
come
skilled
for
the
to
high
maintain
the
and
following
unskilled
execute
houses'per
annumc­
o, of Houses
or,-annum
ropbaod bo
built.
150,000
100.000
Estimate
o f men
employed
on 1919
and 1923
schemes 0
Total
number
of
men
needed,
200^000
Balance
of ex­
t r a men
requir­
ed,
Total
Balanco
number of o x t r a
o f men men r e needed, q u i r e d ,
Total
BaJbaaoo
number o f e x t r a
o f men men r e - ­
needed, q u i r e d .
ailed
19,097
58 250
40,153
88,875
69,779
118,500
99,-105
is k i l l e d ,
13,800
42,100
29,000
64j300
50,700
85,600
72,000
otal:-
52,897 100,550
.69,153
153,175
120,-179
;
The above f i g u r e s
a d d i t i o n a l employment which
a r e s u l t of g r e a t l y
do n o t .
204,100 171,405
of course,
include
would, be g i v e n i n d i r e c t l y as
increased building
On t h e . sbove b a s i s
activity!.
and assuming t h o e r e c t i o n i n 1925
and 1925 o f -100 , 000 e x t r a houses employment i n t h e
trades
alone w i l l be
the
building
found f o r - a f u r t h e r 69,000 s k i l l e d and
u n s k i l l e d men.
The Committee recommend t h e C a b i n e t : To t a k e n o t e o f the Committee's o p i n i o n
that the c a r r y i n g out o f a l a r g e Housing
programme would m a t e r i a l l y c o n t r i b u t e towards
r e l i e v i n g "unemployment', p r o v i d e d t h a t i t does
not unduly d e p l e t e t h e r e s o u r c e s n e c e s s a r y
f o r g e n e r a l t r a d e development,.
- 25 r
* ftne of the main perplexities before
the Cemmittoe is that unemployment is most
serious in those industries which it is most
difficult t * help through the irdihary channels
of Government assistance e.g., Shipbuilding,
heavy engineering^ iron and steel, c*tton.
While i t is true that these industries are
suffering from the general trade depression
there are particular causes at work in eaoh.
For example, shipbuilding Is dependent en
the requirements of shipping, and there is
afloat several million tens of tonnage more
than in 1913 at a time when the movement ef
international trade is much Below the 1913
level.
While i t is true that some of this
tonnage is obsolescent, thero is probably s t i l l
a margin between the available tonnage and the
required tonnage to be taken up as trade
revives before asy substantial erdars fer new
tonnage are likely to be placed.
Heavy engineering is neminally carrying
a personnel probably substantially in excess of
prospective.'...
prospective requirements.
This is due of
course to the a r t i f i c i a l Increase of tho
engineering industry caused by war work.
and the position has been intensified by
the great reduction in the market for armaments.
Tho iron and steel trade shows a percentage
of unemployment of V! (a f a l l i n g percentage)
but according tf press reports i t s production
i s now at tho level c f 1913. This is due
probably to the very great improvement in
meohnioal plent introduced during the war.
The Cotton trade has to face the diminished
purchasing power of valuable eastern markets and
at the same time the prospect, thia year, accord­
ing to market reports, of a possible shortage,
and/or severe increase in the price of raw cotton.
I t would be difficult
so far as the Committee
have been able to go at present to bring within
tho ambit of any general scheme fer relieving
in
unemployment/trades with suoh diverse problems
and accordingly the Committee recommend:That the President of the Board of
Trade and the Minister &t labour
should be requ&g&edto enquire and
present a joint report to the
Unemployment Commit tee $a the
position and prospects of tho
abevonamed and any other basio
industries where unemployment has
' been continuously severe over a
long period.
0
vPLOYMENT
jbP MEASURES
' '
­
As is indicated on page 9 above there are various
Important road, works which could be undertaken by the
Ministry
.
of Transport Ministry of Transport if definite financial provision
Undertakings.
was forthcoming. These schemes are :The Manchester-Liverpool road, Total cost £3,000,000
The North-Orbital Road round
London
The North-Chertsey Road,
"
"
£5,000,000
"
"
£1,500,000
In addition there are a large number of miscellaneous
applications from Local Authorities whose schemes
aggregate about £3,000,000.
The Committee have requested the Ministry of
Transport to furnish them with particulars, of these
various projeotB, the carrying into effect of which
necessitates Borne consideration of the finance of
the Road Fund which is discussed in the following
paragraphs.
l b FUND
PANGE.
The actual state of the Road Fund on the 31st March,
1924, is likely to show an excess of l i a b i l i t i e s over
- assets of about £6 millions.
In future years i t is
expected that this excess will be liquidated and w i l l
be fully discharged by the end of 1928-9.
This
calculation, however, includes no contribution to the
Manchester-Liverpool Road - (the estimated cost of
which te the Road Fund would be £1-1 million on a 50$'
basis) or other similar future undertakings, for whioh
no provision has as yet been made,
On/
On tho 31st March next the Road fund t i l l hold
very largo cash reserves (over £13,000,000) and no
Question of borrowing to meet existing l i a b i l i t i e s
arises immediately in view of this fact.
The existing Statutory Borrowing Bowers o f the
Road Fund are conferred by Section 13 of the Develop­
ment and Road Improvement Funds Act, 1909, which
empowers tho Minister; with the approval of the
Treasury, to borrow on tho security of the Road Fund
for expenditure "which appears to the Treasury to be
of such a nature that it ought to be spread over a term
of years, oo, however, that the total amount required
for t h G payment of interest on and the repayment of
money so borrowed shall not exceed in any one year
£200,000".
The question whether to exercise, or even to
extend, the existing powers of borrowing was considered
by tho late Government but i t was considered that with
tho guarantee o f Treasury cover the Road Fund would
be able t o finance not only its l i a b i l i t i e s than
existing, but the new (1924-25) programme, and also
the Liverpool-Manchester Road.
It was therefore
considered unnecessary to pursue the question of
exercising tho existing powers of borrowing or to
ask Barliamont to extend the limit within which the
Road Fund can borrow with a view to future exercise
of the powers so extended.
-29­
I n c o n s i d e r i n g t h e e x t e n d e d use of the lioad Fund
f o r f i n a n c i n g works i n c o n n e c t i o n w i t h unemployment
it
must be remembered t h a t the Itoad Fund i s
derived
from t a x e s on v e h i c l e s , almost the whole of which
comes from m e c h a n i c a l l y - p r o p e l l e d v e h i c l e s .
These
t a x e s , which were imposed i n c o n s u l t a t i o n w i t h the
i n d u s t r y , w e r e based oh the u n d e r s t a n d i n g t h a t
money should be u s e d f o r
the improvement o f
The m o t o r i n g i n d u s t r y i s
suspicious that
is
in f a c t
being diverted for
the r e l i e f
the
roads.
the money
o f unernploy­
ment which t h e y c o n s i d e r i s n o t a p r o p e r charge on
t h o Road Fund,
The M i n i s t r y o f Transport has always
s e l e c t e d works which a r e r e q u i r e d i n the
of t r a f f i c
int/rests
and has o n l y a n t i c i p a t e d them f o r
purposes o f unemployment r e l i e f ,
to t i e up t h e f i n a n c e s
p e r i o d of y e a r s ,
the
but i n any s u g g e s t i o n
of t h e Road Fund f o r a l o n g
c r i t i c i s m and p o s s i b l y
opposition
must be e x p e c t e d from the motor u s e r s .
The new motor t a x a t i o n i n t r o d u c e d by tho Finance
A c t , 1920, formed i n e f f e c t
vehicle
a b a r g a i n between motor
owners, as r o a d u s e r s , a n d t h e
T h i s understanding
was
r e f e r r e d to
Government,
again
and
again
i n the course o f the. d e b a t e s on t h e Finance B i l l and
t h e Roads
Bill,
The Committee recommend t o t h e Cabinet - '
(1)
That the M i n i s t e r
be a u t h o r i s e d ­
fa)
of Transport
should
To r e - o p e n n e g o t i a t i o n s w i t h the
A u t h o r i t i e s i n t e r e s t e d i n the
scheme f o r the L i v e r p o o l - M a n c h e s t e r
Road on the b a s i s t h a t t h e Government
c o n t r i b u t i o n should be f i x e d i n
aocordence w i t h terms a g r e e d between
the M i n i s t e r and the T r e a s u r y ,
(b)
To p r e p a r e f o r t h e c o n s i d e r a t i o n
of
the Unemployment Committee, a programme
of Works f o r
the w i n t e r 1924,-25;
such
programme t o i n c l u d e among o t h e r
important undertakings the N o r t h
O r b i t a l R o a d and t h e new C h e r t s e y
Road.
(c)
To p r e p a r e f o r t h e c o n s i d e r a t i o n
of
the Unemployment Committee a
statement as to the p r a c t i c a b i l i t y
of
relieving'unemployment
by means
of:­
(i)
( i i )
An e x t e n s i o n
particularly
districts.
of
in
light
railways,"
Agricultural
Improvements
in
the
Canal
existing
system.
(2)
To r e q u e s t t h e C h a n c e l l o r of t h e E x c h e q u e r
in consultation with the Minister
of
T r a n s p o r t to examine the g e n e r a l
question
of the p r o v i s i o n of f u r t h e r
financial
r e s o u r c e s f o r t h e o r o o o s e d new programme
indicated in (1) above, p a r t i c u l a r l y with a view
to d e t e r m i n i n g whether the e x i s t i n g
limits
w i t h i n w h i c h the R o a d Fund can o p e r a t e ,
should
be e x t e n d e d a n d i f
BO i n w h a t f o r m P a r l i a m e n t a r y
sanction for such extension i 3
necessary.
(3)
To t a k e n o t e t h a t t h e Committee p r o p o s e ,
in the
near future
t o examine s u g g e s t i o n s submitted t o
them b y t h e M i n i s t e r o f T r a n s p o r t ( c . U . 636 &
C U .
6 3 7 ) f o r u n d e r t a k i n g a new r o a d a n d b r i d g e
c o n s t r u c t i o n programme and -;lso f o r
stimulating
employment by the improvement o f
existing
highways.
*
;
7ii
The Committee have noted t h e v e r y
measure
o f unemployment r e l i e f
from t h e e f f o r t s
substantial
whioh has
resulted
o f t h e Unemployment Grants Committee.
The Committee f e e l ,
no doubtj
t h a t t h e Cabinet
wish t h e work t o be c o n t i n u e d g e n e r a l l y
on
will
existing
lines.
The Unemployment Grantb Committee were a u t h o r i s e d
to approve f o r
g r a n t worko c a r r i e d
out by l o a n ,
oommenced d u r i n g t h o Autumn and Winter o f
up t o a t o t a l
approved
capital
oost
1923/24
of £20,000,000.
They have
over £14,250,000 worth o f suoh works
under c o n s i d e r a t i o n
further
and''have
schemes t o the v a l u e
of
v
£4,250,000 making a t o t a l
figure
of
£18,500,000.
More schemes a r e coming i n d a i l y and i t
that the f i g u r e
of
t i o n extends w i l l
course o f
is
probable
£20,000,000 t o which t h e i r
be reached
if
authorisa.­
not exceeded i n t h e
the n e x t few w e e k s i
The Committee propose t o c o n s i d e r ,
in .consultation
w i t h t h e Unemployment Grants Committee c e r t a i n o f
the
c o n d i t i o n s upon which g r a n t s a r e a t p r e s e n t made w i t h
a v i e w t o s e e i n g whether any r e l a x a t i o n o f
is
the
conditions
desirable.
It
w i l l a l s o be n e c e s s a r y f o r
t h e Committee t o make
an e a r l y recommendation as to. t h e t o t a l
o f works c a r r i e d
value
out by l o a n which tho Unemployment
Grants Committee w i l l be a u t h o r i s e d
coming F i n a n c i a l y e a r .
corresponding
capital
the
the
of
1923/24 was i:2O.000,000 and on t h e i n f o r m a t i o n
at
for
for
As i n d i c a t e d above
in
the Autumn and w i n t e r
present b e f o r e
figure
t o aid
them, t h e Committee t h i n k t h a t
an amount not l e s s than t h i s
required.
figure
will
sanction
be
The Committee recommend to tha Cabinet ­
(i)
(ii)
iii)
(iv)
That in order that tho Unemployment Grants
Committee may be able to continue to assist
Bohemes on the loan basis, the Committee may be
authorised to exceed the oxisting limit of
£20,000-000 (the total value of suoh schemes
to bo assisted in 1923*-24 by a further sum of
L£,000^000 making £22,000,000 in a l l ) .
That the Cabinet should approve in principle­
the polioy of assisting works starting in the
Spring and Summer months.
\
That the Treasury, the Ministry of Health,
: the Scottish Offioe and the Unemployment
Grants Committee be authorised to formulate
proposals regarding the financial provision
to be made during 1924/25 in respoot of the
Cammitteo^ various sohemes with a view
to the issue of a circular to Local Authorities
early in Maroh 1924;
That the Unemployment Grants Committee
be requested to submit for the consideration
of the Unemployment Committee a memorandum
on the proposals and difficulties of the
present schemes under whioh financial
assistance may be given to Public Utility
Undertakings.
-Z2 ­
A
The l a t e s t - a n a l y s i s
"Labour o f t h e i n d u s t r i a l
the
270,000 f e m a l e s
were
of
December
unemployed
and N o r t h e r n I r e l a n d
of
d i s t r i b u t i o n of
21st
unemployment on
of the M i n i s t r y
out o f
1923 shows t h a t
i n Great
an i n s u r e d
2,975,000, a p e r c e n t a g e
Britain
population
of 9 . 1 as compared
w i t h a c o r r e s p o n d i n g p e r c e n t a g e f o r males at t h a t
date of 1 1 S .
inolu&iaj
for
about
larly
for
textile
93,003;
tailoring
millinery
for
bleaching
the
38,000;
obviously
"relief
and
for a further
a very d i f f i o u l t
schemes"
trades,
partiou­
mantle making
boarding
course'
trades
account
distributive
the
which are of
considerations,
and d y e i n g
clothing
and d r o s s
S3.00C and h o t e l ,
services,
t h etextile
Of t h i s f i g u r o
0
house
and
trades
and
club
affected
by s e a s o n a l
21,000.
It is
problem
t o devise
t o women, and so
applicable
far
i t has o n l y been p o s s i b l e t o make arrangements f o r
different
types
of domestic
training.
understand t h a t t h e C e n t r a l
Training
The
Committee
Committee on Women's
and Employmemt are c o n s i d e r i n g the
m a t t e r and w i l l s h o r t l y be
making
p r o p o s a l s t o the
M i n i s t r y of Labour on the p o s s i b i l i t y
of
finding
employment f o r some of the unemployed women and
these p r o p o s a l s w i l l r e c e i v e immediate
Financial
be
made
question
provision
for
these
and t h e Committee
in
the near
schemes
propose
future.
-
to
consideration,
will
have
consider
to
this
*
i
i n - : Committee
That
the
a
recommend
Committee
Treasury,
Scottish
of
be
the
Unemployment
the
/hile
certain
acute
larger
under
in
areas,
of
pending
further
provision
b e made
in
of
system-of
is
The
relief
of
largely
so
bound
agi ,
abnormal
which
as
t h e Cattle
tend
to
swell
schemes
respect
of
the
the
is
t h e volume
consider
policy
for
and
Policy
such
the b e s t
in
up w i t h
depression
Committee,
the age
^ o t and
exists
not
such,
Juvenile
Insurance
the- a g r i c u l t u r a l
doubt
Juvenile
had to matters
undoubtedly
investigation,
t h e existing
financial
to
no
unemployment.
continue
have
policy
Ministry
Report
the Unsmplcym. n t
school-leaving
agricultural
a
of
the
the
the l o w e r i n g
question
of
and
question
the
the
ci: 1 causes
Slaughtering
rural
of
and i s
consideration
Committee,
of
the
representatives
prepare
being
centres,
of
towns
problems
the
regard
U'n*' i . . y l o y m e n t
the
of
-
education,
to
the Unemployment
raising
some
rural
as
in
of
Department
on t h e w h o l e
the e x t e n s i o n
Cabinet
of
authorised
Unemployment,,
limit
Board
consideration
Committee
as
the
composed
the
education
Labour
for
to
which
current
that,
will
be
to
additional
year
will
0
The
Committee
recommend
(1)
T h a t the- L i n i s t e r
of
s h o u l d be a u t h o r i s e d
to
the C a b i n e t
agriculture
to expend a
­
and : i s h e r i e s
f u r t h e r sum
( o v e r and a b o v e t h e
£250,000
a u t h o r i s e d b y t h e l a t e G o v e r n m e n t a n d now e x ­
h a u s t e d on commitments) i n a s s i s t i n g
outstanding
o f u n e m p l o y m e n t a-v
land drainage works i n r e l i e f
t h a t w o r k o n t h e s c h e m e s be a l l o w e d t o c o n t i n u e
u n t i l 50tn J u n e , 1 9 2 4 ,
(2)
That the j o o t t i s h Board of A g r i c u l t u r e
s h o u l d be
a u t h o r i s e d t o e x p e n d a f u r t h e r sum
( o v e r a n d a b o v e t h e sum o f £50,125
already proviuea)
f o r a s s i s t i n g works e l
lana
drainage', farm w a t e r s u p p l i e s and improvements t
farm roads i n
Scotland,
and t h a t work
on the
s c h e m e s be a l l o w e d to c o n t i n u e u n t i l 3 u t m June
.
(3)
T h a t t h e a m o u n t s t o be p r o v i d e d u n d e r ( 1 ) a n d
above
s h o u l d be c o n s i d e r e d a s s o o n a s p o s s i b l e
the U n e m p l o y m e n t C o m m i t t e .
in connection with
:'
D e p a r t m e n t a l p r o p o s a l s r e f e r r e d t o i n the
following
paragraph.
9^0
8
0
e
FURTHER
Steps
have
been
taken
to
obtain
from;
all
DEPARTMENTAL
PROPOSALS.
Government
relief
whioh
measures,,
each
assuming
soon
the
Departments
as
financial
hope
to
suggested
in
the
the
accrue
SUPPLEMENTARY
ESTIMATES,&c
be
the
be
of
the
As
regards
the
position
are
still
HOWQRTH-j
S
)
7th
on
the
J3ADY,
)
to
forward,
been
them
the
works
received
in
to
with
amount
As
detail
Cabinet
be
and
a
undertaken
estimates
of
re-assembling
3lst
March,
speaking
Estimates
could
Febiuary,
S wYl.
c
1924.
the
the
the
of
employment
of
whioh
Parliament
House
amount
1924
for
grants
in
in
of
ii;
in
the
relief
arising
out
aid.
The
question
generally
that
is
provision
that
at
for
unemployment
be
effected.
Signed
x,
, ,
of t h e
total
should
relief
on b e h a l f
r,
t i j .
Committee,
of
amount
1924/21?
for
those
present
a
£730,100.
is
Estimates
and
Commons
required
Departmental
consideration
increase
Committee,
to
Estimate
normal
Secretaries
,
, ,
to
the
Gardens,
of
including
under
to
present
Estimate
the
alterations
2 Whitehall
had
together
the
work
available.'.
to
further
and
Supplementary
various
r
work
necessary
ending
decide
C W,,G,,
of
submit
of
- .
unemployment,
i'
to
were
consider
future,
Immediately
year
R.B.
put
to
0
Supplementary
)*
,
wish
type
0
will
d
able
programme
of
the
replies
to
unemployment
showing
provision
propose
immediate
cowt
would
departmental
Committee
they
Statements
Department
the
conccsraodwith
estimates
the
made
the
Cabinet
in
the
necessary
.
T
r
bl.UjM.Eil
n
W.EJ.O.D ­
GEAIRMAB".
APPENDIX I I .
NOTES ON TRADE PROSPECTS I I 1924.
nn and Steel Trades.
ImportB of raw materials in 19SS were in
every quarter better than in 1922 and though the impulse of the.
Ruhr died out, the fourth quarter showed a revival on the
third. - The imports of iron ore were in that quarter nearly
72$ of the quarterly average for 1913,
British exports alBO
were better than in 1922 and again the fourth quarter showed a
revival on the reaotion of the third and was only slightly
behind the total of the second.
The revival was most
noticeable in the more finished classes of tinplatea, galvanised
sheets, railway material, &o.
fllohlnery.
Prospects;, for 1924 appear bright,,
Competing imports are not important except in a few
classes.
The loss in exports during the summer was nearly made
good in the fourth quarter whioh was only 2,000 tons behind
the f i r s t .
This revival, shpuld continue, as steel production
has increased.
ghiolea.
Exports of motor oars a n cycles inoreaaed progressively
u
through the year, and those of locomotiveswere greatest in
the fourth quarter.
" "in
itton.
T H I N ,
There, is no reason to anticipate a check
development,
Retained imports of raw cotton in the fourth quarter
of 1923 were nearly 16$ greater than those in the fourth quarter
of 1922, but owing to the short American crop and higher prices
i t appears doubtful whether the aggregate imports of last
year will be equalled.
I­
0i
Retained
Outlook bad.
I M P O R T B
of sheep's and lambs' wool in the
second half of 1923 were lees than one-fifth of thOBe of the
f i r s t half.
Supplies, especially of merino, are short and
prioea are rising,
Qutlqck bad.
Other
igr textiles,
Outlook better then in 19S3 or 19££..-especially for' Jute,
but flax i e s t i l l very short and expansion in that branch
unlikely.
in-ferrous Metals, flutloek better,,than in 19SS. espeoially for copper
and tin and zinc.
There was, however, a reduction in lead
imports in the fourth quarter of 19S3 and supplies are reported
to be short.
tper.
Imports of woo^d pnlp in fourth quarter of 1923 show a
seasonal decline, but s t i l l were below fourth quarter of 1922.
Considering the large inoreoses in the other quarters this may
not be of importance and the outlook may be regarded as favourable.
jf.tb.er.
Increased imports of hides in second half of 1923 over
f i r s t half and over second half of 1923 augur well for 1934, and
imports of leather were also maintained
Outlook for leather
and boot trades good;.
11. trades.
Imports in 1923 oompared with 1922 show a patch of
development, but generally comparing the last quarter putiopfc
for 1934 shows some improvement.
legdoals.
Judging by the r-un of the exports in 1922 and 1923
' Prospects, are frppd in ammonium sulphate, sodium compounds,
coal tar dyes, painters' colours and soap.