BRITAIN'S FINANCIAL POSITION

Dominion, Volume 12, Issue 161, 2 April 1919, Page 7

BRITAIN'S FINANCIAL POSITION

DEBATE IN THE HOUSE OF LORDS GRAVITY OF OUTLOOK STRESSED Br TcieErapli-Prcsa Aasociation-CojiirigUt (Bee. April 1, 11.35 p.m.) London, March 26. In the House of Lords, lord I'Vingdou culled attention to the country's financial condition. Ho said the .burden was fast becoming insupportable. We were standing on the brink of a precipice. The country expected a more rapid diminution of expenditure, which should be limited to absolute essentials. Lord Peel, replying, agreed that strict, economy was necessary, but Britain stood first in her attempt to finance the war out of taxation, which was now .£l7 per head of the population compared with i! 3 10s. before the war. Expenditure bad been reduced by two millions daily since tho armistice. Lord Buckniaster estimated the national capital before the war at between fifteen and nineteen thousand millions, of which seven thousand millions had been lost, while the remainder had depreciated SO per cent. The Government should ascertain the country's maximum financial capacity compatible with its existence, and forcibly compress -its expenditure within it. - Lord Milner questioned Lord Buckmaster's figures, and doubled if the actual loss-was in excess of ono thousand millions. The remainder bad merely changed bands. Tho idea, that the country's valuation had depreciated nearly ,'io per'cent, was completely fallacious. A certain amount of borrowing must continue for the development of productive undertakings, but the watchword must be "Economy and increased production." Tho Government realised the gravity of the situation, but it was of no use to exaggerate it.—Aus.-N.Z. Gable. Assn.

THE TARIFF AND IMPERIAL PREFERENCE . FIRST NEED-TO STIMULATE PRODUCTION. (Rec. April 2, 0.10 a.m.) London, March 26. In tho House of Commons Mr. Newman moved urging the Government .to declare its policy rejecting trade and Imperial .preference without delay. He instanced the. hopelessness of competing . with Japanese cheap labour. British industry could, not. lay plans for the future until a fiscal policy was revealed. The election had given the Government a. clear .mandate for the Premier's declared policy of . protecting ley industries, Imperial pretence, and the prevention of dumping. During the war Britain spent her substance, and must begin again to make her fortune. Sir Donald' Maclean, opposing, said that previous speakers had said much about protection but little about preference. •

Mr. Bonar Law said that the first need. was. to stimulate production. He repeated the Government's declaration of 1918 that it was intended to. give effect to Imperial preference, at the earliest moment. Britain's experience as regards sugar showed the need for developing the Empire's production of. that commodity. There .was no guarantee that the war would have been won without the help of the Dominions'troops. Was.anyone prepared after that to say that Imperial preference would not help us?

Mi'. Austen Chamberlain said that the Government was now considering how to. deal with the .question i» tho forthcoming Budget. There would be no hedging or hesitation when the time came to frame the scheme. Mr. Lloyd George's declaration regarding key industries, dumping, and preference would be fulfilled in the letter and spirit, but a complete examination of the question was necessary.—Aus.-N.Z. Cable Assn. '