CO129-581-16 British propaganda in Hong Kong 18-4-1939 - 29-10-1939 — Page 31

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Lower Cost of Living.

With British industry busily engaged in supplying home demand and foreign markets, it is noteworthy that the present industrial expansion in Great Britain has not been accompanied by any major rise in prices. This is a clear indication of the financial resources of British industry, and not less of the ease with which British manufacturers and merchants have been able to meet the calls made upon them. Indeed, at a period when prices in general might have been expected to rise, the latest official returns show that on the 1st of August the average level of retail prices for food, rent, clothing, fuel and light was actually lower by one per cent 3 compared with July this year and with August last year, while the food prices level dropped as much as two per cent in August this year,

It is possible that there may now be an upward tendency in prices, which would to a large extent be nothing more than a reflection of an increased wages movement.

The satisfactory spending capacity of the public is illustrated by the results announced by four of the leading London West End

stores. These firms have now declared their interim dividends

which are all at five per cent. The stores in question are among the largest and most complete in the world, and their aggregate issued capital, besides demonstrating the strength of their financial resources, gives some idea of the enormous volume of business they are equipped to handle. Their total issued capital is over £9,800,000. Last year, after an interim dividend declaration

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of five per cont - the same rate as this year the final dividends paid by these companies were in one case five per cent, and in the

the thi 3snes ton, thirtcen and sixteen per cent.