THE BUDGET.

Press, Volume LXI, Issue 18366, 27 April 1925, Page 11

THE BUDGET.

PRESS PREDICTIONS. PROVISION FOR PREFERENCE. (B! CULT. —PRESS ASSOCIATION— COPIKIGHT.) (Stdkit "Sra" SBEVICT.)

LONDON, April 23

The "Daily Mail' predicts a spectacular Budget, with sixpence, possibly a shilling, reduction in income-tax, a comprehensive scheme of insurance against unemployment and sickness, pensions for widows, and provision for preference in accordance with the Imperial Conference decisions. "Mr Churchill," ndds the "Mail," "will not announce the date on which it is intended to return to the gold standard."

The Parliamentary correspondent of the "Daily Telegraph" forecasts that the Budget will include import duties on luxury articles, practically a revival of the McKenna duties, which produced £3,000,000 annually. It is confidently expected Mr Churchill will announce that the Act prohibiting the export of gold, which expires at the end of the year, will not be renewed, and he may indicate the date on which it is proposed that Great Britain will revert to the goU standard, which Mr Reginald McKenna pointed out recently does not mean that gold sovereigns will again be put into circulation.

INTEREST IN AMERICA.

STERLING ADVANCES

(ml'tze's tblegjsams.) (Received April 26th, 5.5 p.m.) NEW YORK, April 24. Great Eritain's plans to restore sterling to a gold parity basis have the support of American bankers by credit arrangements through a private banking loan or the purchase by the Federal Reserve Bank of sterling bills. It is indicated that the method most likely to be adopted will be By a discounting arrangement with the Federal Reserve Bank in New York, which will assure the British Treasury of a constant supply of dollars and regulate the market. Heavy buying of sterling in anticipation of the announcement of Great Britain's return to the gold standard and Mr Churchill's Budget speech sent the demand for bills within five and a quarter cents of par, the highest since 1925. They reached 481 $ cents to-day—a new high level.