FINANCES OF BRITAIN

Press, Volume LXXXII, Issue 24903, 17 June 1946, Page 3

FINANCES OF BRITAIN

DR. HUGH* DALTON’S REVIEW » NATIONAL CREDIT NEVER HIGHER ” (N.Z. Press Association —Copyright) (Rec. 8 p.m.) LONDON, June I<. •Tludging by the yardstick of the rate at which the Government can borrow, the national credit has never been higher,” said the Chancellor of the Exchequer (Dr. Hugh Dalton) m opening the debate on the ment’s finance and .budgetary policy at the Labour Party Conference at Bournemouth. . _ The Government, to avoid inflation on one hand and deflation on the other, was endeavouring to keep production and purchasing power closely related. Therefore, he had deliberately gone slow in regard to tax reductions ana the release of post-war credits, because he was not going to be responsible for landing the country in an inflationary spiral. . “Now we have reached the point where the production of home goods is rapidly increasing and the fear of inflation is diminishing,” he added. “The danger of Inflation has nearly —well largely—passed away, but we must continue to show caution in handling public finance and insist on national savings,” he added.. If the savings target of £520,000.000 was not reached this year, he would have to go slower still with future taxation and the release of post-war credits.

Bank of England Shareholders Replying to a resolution criticising the over-generous compensation of the Bank of England shareholders and demanding that compensation in future cases of nationalisation should be the minimum possible, Dr. Dalton said: “We got a very good bargain from the Bank of England. What we have taken over is worth a great deal more than the price paid.” Because the Bank of England was a special case shareholders had been treated on a more generous basis than would be likelyin future cases of nationalisation. The big point was that the Government in nationalising the Bank of England, had taken into safe keeping the national keypoint in all future financial plans. Dr. Dalton said that the budget deficit this financial year would be reduced to only £726,000,000. which, without terminal items would amount to only £300,000,000. “I say don’t be slushy minded about finance,” he continued. “You must recognise that because we have a'great social programme taxation in the next year or two cannot fall so fast as if we were Conservatives arffl had no social prbgramme.” Dr. Dalton was. repeatedly cheered, and when he ended his speech he received one of the warmest ovations of the conference. The resolution criticising the overgenerous compensation of Bank of England shareholders was defeated by an overwhelming majority on a show of bands. After debates on housing and the conditions of the colonial peoples in the Far East, Professor Harold Laski wound up the conference by referring to the publicity given him at the time of the general election. He ironically thanked journalists for the •attention Si ven his activities, saying: “Never in le history of nfankind have so many followed just one. The skeleton now goes back into the cupboard." The conference concluded with the singing of the “Internationale” and the “Red Flag.”