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By Susan Howson

The adventure of the industrial Advisory Council presents the suitable coverage history to the Keynesian revolution in financial idea, and to the adoption of the foundations of monetary administration in Britain in the course of the moment international warfare. This examine of this pioneering advisory establishment opposed to the inter-war surroundings of melancholy, monetary situation and restoration relies on govt documents, supplemented via different modern assets. The e-book bargains with the political and financial origins of the E.A.C. within the post-1918 decade; the function of the Council and its committees of inquiry because the international hunch started to make an effect on an already depressed British economic system; and the half performed by means of person financial advisers within the dramatic occasions which resulted in the autumn of the second one Labour govt and Britain's departure from the finest in 1931. in the course of the nineteenthirties the paintings of the Council was once carried on by means of the Committee on fiscal details, which helped to supply the nationwide govt with options to the complicated and novel difficulties of a post-gold regular global. as well as assessing the importance of the E.A.C. test, the publication reprints a few studies and offers a advisor to the correct files within the public documents.

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The mood did not survive the summer. * Cab. C. ) 4, Henderson, ' The Economic Outlook', 3 April 1930. Henderson prepared this for the Committee on Economic Outlook, who incorporated it in its report 32 THE EARLY MEETINGS AND REPORTS The early meetings and reports The early meetings of the Council were devoted to general discussion of the economic situation and to decisions as to which subjects merited further inquiry by specialist sub-committees. 1 1 In the latter respect the Council got off to a brisk start.

The committee, which included Duncan, Cadman, Bevin, Keynes, and Lewis, replied in the negative to the second question and in the affirma­ tive to the first, but only ' on the clear understanding that if private enterprise commences the operation and fails to carry the venture through, they cannot call upon His Majesty's Government for a subsidy or for financial support '. The Council and the Cabinet agreed. 1 s It seems that MacDonald and Keynes both favoured a Channel tunnel in principle. MacDonald told the Cabinet that ' as a supporter ' of the idea, he was ' disappointed to find how many elements of doubt and uncertainty exist, and how lukewarm is the support to the project from trade and industry', while he told Keynes that ' if l were quite clear that the proj ect would really be in the national interest, I should nationalise it from the beginning '.

58/149, Minutes, memoranda and report of Committee on Empire Trade 1930, 4 March12 June 1930 ; Cab. 23/65, Cabinets 52 (30) l and 53 (30) l, 17 and 25 September 1930 ; Cab. P. P. 313(30), ' Imperial Economic Machinery, Memorandum by President of Board of Trade', I I and 23 September 1930. On the conference, see Drummond, Imperial Economic Policy 1917-1939, pp. 145-62. 17 The report of the Committee on Agricultural Policy became entangled in the prolonged controversy within the Cabinet over agricultural protection.

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