TREASURY PAPERS
Series One: Papers of the Economic Section, 1941-1961 (Public Record Office Class T 230)

Part 4: T 230/110-145

Part 4 (T 230/110-145) looks at the National Wages Policy, Price stabilisation policy, correspondence of the Inter-departmental Committee on Reparations and Economic Security, Proposals for a commercial clearing union, the Inter-departmental Committee on Post-war Commercial Policy, the Post-war Export Trade Committee, Future British export prospects in connection with increasing world competition, proposed post-war trade collaboration with allied governments, Statistics relating to trade tariffs and preferences, the working party on the Expansion of Trade with Eastern Europe, Lend-lease general papers, and the Economic Survey for 1948-1952.

The material is again arranged in only a broad chronological manner covering the period 1940-1952. There are good files addressing the variety of problems which afflicted Britain’s war-time economy, post-war economic development, trade and commercial policy.

Within Part 4 the main file headings are:

National wages policy
Price stabilization
The effect of air raids on factory production
Rationing
Inter-departmental Committee on Reparations and Economic Security
Commercial policy; Proposals for a commercial clearing union
Inter-departmental Committee on Post-war Commercial Policy
Commercial policy
Ministerial Committee on Post-war Commercial Policy
Post-war Export trade Committee
Future British export prospects in connection with increasing world competition
Proposed post-war trade collaboration with Allied governments
Statistics relating to trade tariffs and preferences
Working Party on Expansion of UK Trade with Eastern Europe
United Nations Relief and Rehabilitation Administration: Scope and organization
Lend-lease general papers
Termination of Lend-Lease and transitionary period negotiations
Economic Section of the Cabinet Secretariat: Discussion papers
Economic Survey for 1948-52

Contained within the files in Part 4 are documents that look at the range of contemporary economic issues. File T 230/143 in particular, contains a wide selection of pertinent Discussion Papers by leading government economists, including:

The 1949/1950 Programme - J Jukes
Alternative Methods of Controlling Price - M F W Hemming
Intra-European Trade and Payments - J M Fleming
Wages Policy - J Downie
The Economic Section’s Beliefs - D M B Butt
Economic Policy in a Recession - J C R Dow and R Hall
Investment Policy in a Recession - R F Bretherton
Inflationary Pressure - K Howell
Conditions for Operating a One World System - M F W Hemming
How much Investment? - F J Atkinson
Notes on Central Planning - R Hall and Mr D Allen
The Problem of Unemployment - J Grieve Smith

From T 230/118 the following letter gives a flavour of some of the material in these files:

It is addressed to:
Professor Lionel Robbins,
Offices of the War Cabinet,
November 20, 1940:

"My dear Robbins,

Your letter of the 19 November confirms more expressly what I suspect to be the nature of the present trend of things. I am in strong agreement with what you say and imply; and am doing and will do what I can in that direction.
It seems to me tremendously worthwhile to have really drastic taxation in order to avoid, or at least minimise, the appalling administrative task of general rationing; for that rather than price inflation is, I agree, the more probable alternative in present circumstances. My chief trouble is in fact with Hubert Henderson, who seems to believe, Heaven knows why, that we can excuse ourselves drastic taxation and that, nevertheless, nothing much will happen; and the foolish fellow takes this line although he is, I think, just as much opposed to general rationing as anyone else.

Yours sincerely
J M Keynes"

The following extracts from a paper written in 1945 by G L S Shackle entitled The Case for a Rising Price Level [from T 230/115], shows the bold policies and unorthodox ideas that the Economic Section were prepared to consider:

"In almost all the official discussions and Ministerial pronouncements of recent years, it seems to be assumed that "the general price level" must be stabilised, that "inflation" must be avoided. Precisely what hardships or injustices, what injury to our total prosperity, what embarrassment to the fulfilment of policy, would be entailed by a rising price level, is seldom analysed or explained. No thought seems ever to be given to the possible advantages of a rising price level..."

"...Is there not a case for throwing off the exaggerated fears of inflation, relaxing the policy of severely fettered prices, and allowing (with suitable direct encouragement of exports) internal prices to be buoyant and encouraging to enterprise?"