BRITISH FINANCE

Dominion, Volume 14, Issue 219, 10 June 1921, Page 5

BRITISH FINANCE

GRAVITY OF SITUATION AROUSES GOVERNMENT DISCONTINUING CONTROL OF AGRICULTURE POLITICAL SENSATION CAUSED By Telegraph—Pre»» Aaaoolatlon—Copyrlgil* (Rec. Juno 9, 8.40 p.m.) London, Juno 9. The decision to discontinue control of agriculture and abolish guaranteed prices ■nd minimum wages, has resulted in a political sensation. The step Is due to the fact that tho Government is now thoroughly aroused to the gravity of the financial situation. It is pointed out that whereas tho revenue since April 1 has decreased a hundred millions compared with last year, the expenditure has decreased only eighteen millions. Thus far the expenditure has been 223 millions and tho revenue 155 millions. The State is losing ten millions monthly on the railways. The scrapping of the farmers’ guarantee is not saving current expenditure, but the avoidance of what might become an unsupportable liability in the future. There is certain to be a storm over the violation of the definite four years’ pledge to farmers. Other evidences of the economy scare at Whitehall are the disbandment of reservists, the changes in the unemployment benefits, and the cutting down of the State housing schemes. The change in the agricultural policy, it is estimated, will save twenty-five millions next year, but there is danger of an agricultural strike, if an attempt is made to cut tho wages of agricultural workers with undue haste. —Aus.-N.Z. Cable Assn.