Stock Market Rise

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Behind every picture there lies a story, and the story behind the doubling of the rices on the London Stock Exchange is one of deepening world recession and renewed attacks on work. class iving standards aided and abetted the Labour Government and the Mentando anion toodarehen In May 1972 the FiT. index stood at 543.6, but in the following 31 months it plummeted b more than 70% to reach 146 on 6th January this year - its lowest level since 1954. (In fact, because of inflation, shares were actually worth only half of their 54 values./ It by the end of February the index had mote than doubler What lies behind this unprecedof course. is never absent.But the recent rise has a more so one to sion has. more solid i oundation. been accompanied everywhere by a sharp drop in the demand tor money to finance investment. Consequently, there has been a sharp fall in interest rates.

The Bank of England has redned its Minimum Lending Rate from 13% to 10%. Those capitalists not prepared to accept reduced interest payments on their cash deposits are trying their luck on the world's stock exchanges. This is the first main reason for the increase in share prices The second main reason is to be found in the activities of the Labour government since the beginning of this year. Constant attacks on the working class have accompanied repeated concession! to the demands of big business.

There are persistent rumours of an end to all divident and price controls. Big concessions have been made on North Sea oil tax. on the Capital Transfer Tax, and on the pensions bill. The CBI is said to be confident of concessio on the Industry Bill.

The government's efforts to protect profits are reflected in the rise in share prices On top of this the city is strengthened by the shift to the right in the Tory party with the emergence of people who are prepared to use unemployment to take on the working class. Mike Farley to address the next meeting.

The escalation of mass unemploymunt as the crisis bites deep into industry, driving the employers to sackings and plant closures, has already demonstrated that an eight page fortnightly paper is inadequate for the role which must be played by the WSL.

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It is vital that the policies our paper fights for are read widely in the workers movement as leadership becomes the crucial question.

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