British Mandate: A Survey of Palestine: Volume II - Page 1015

CHAPTER XXVI.

c.i.f. prices, and gross profit rates of 2 1/1% for purchases from local stocks and of 3-10% (according to the size and conditions of the consignments) for new imports. In August, 1942, the Defence (Yarn) (Limitation of Prices) Order, 1942* was enacted. Nine months after the Order bad been gazetted all stocks of yarn in the country bad, either by purchase or requisition, been acquired at the legal maximum prices and put into production, thus enabling the execution of Army orders and the launching of a comprehensive Utility scheme on the basis of low price raw materials. Supplies of yarn secured from local stocks lasted until the third quarter of 1943 when the first consignments imported by the companies arrived and made uninterrupted production possible.

83. Cost prices of Indian yarn were 45-100% above the legal maximum selling price fixed in August, 1942. On the average, these prices would have had to be raised at once by 80% to meet all contingencies. Consequently a scheme was introduced whereby prices of cotton yarn and products thereof (in so far as they served essential purposes) remained stable at the prescribed level and the deficit incurred was covered by a "subsidy" granted to the yarn companies. Simultaneously, a trading section was established which acquired, by purchase or requisition, all low-priced consignments of yarn and cloth suitable for essential purposes and all textiles confiscated by the Courts. The yarn and cloth thus acquired were resold at prices adapted to the general controlled price level.

84. About 42% of the supplies of cotton yarn available in 19J5 were contributed by the local spinning mills. The number of spindles installed increased during the war by more than 100% as a result of the arrival of equipment ordered early in the war. Local cotton yarn is controlled under the same legal provisions as imported yarn. In autumn, 1943, when the prices of Egyptian raw cotton and local wages rose, the subsidisation scheme was extended to cover local cotton yarn also and, as a result, prices remained stable.

85. In August, 1942, control was extended also to cover rayon and wool yarns, the legal provisions being similar to those applying to cotton yarn. The major part of wool yarn available for production came from local wool spinning mills, the only other source being the United Kingdom (worsted yarn). The output of these local mills was fully taken under control and allocations of this yarn were made exclusively for Service and Government requirements and for Utility production. As for the latter, almost the whole output of tweeds, coatings, ladies' dresses, blankets and a

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* Laws of 1942, Vol. III, page 1390.

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