ISSUE PRICES FOR RAW COTTON. Memorandum by the Chancellor of the Exchequer.

non-utility prices would be a rise of rather more than 1 point in the Cost of Living Index. As I recently told the Committee (L.P. (43) 75th Meeting, Minute 5) there are other factors which will cause a rise in the Index during the coming months, and I have reviewed the effects of these changes in a separate paper which I am circulating to the Committee. It was understood when the utility scheme was introduced that stable raw material prices were fundamental to its success. The President of the Board of Trade takes the view that a large increase in the price of so important a raw material for the clothing industry as cotton, would seriously prejudice the working of the scheme, particularly the possibility of maintaining effective price control.