CHANCELLOR'S ADDRESS

Evening Post, Volume CXIII, Issue 30, 5 February 1932, Page 7

CHANCELLOR'S ADDRESS

PATRIOTISM OF PEOPLE

MODERATE PROTECTION

(British Official. Wireless.)

(Received sth February, 1 p.m.)

RUGBY, 4th February. The Chancellor, Mr. Chamberlain, in surveying the situation, recalled that when the National Government was formed it was with a mandate to apply an unprejudiced mind to the restoration of confidence in our financial stability and to frame plans for ensuring a favourable balance of trade. He declared that he did not believe that anywhere else in the world could there have been such self-sacrificing and devoted patriotism as was being shown by the British nation during the last few months. He instanced the fact that income tax payable on Ist January had been received to tho amount of £105,000,000, as against £60,000,000 last year. He believed that the same spirit would continue, that any loss they might have to meet in other directions would be made good, and that financial affairs would come out on the right side at the" end of the year. STEADINESS OF STERLING. Mr. Chamberlain mentioned 'that tho internal purchasing power of the £, was 20s, and that since Britain went off the gold standard the cost of living had only risen two points, and was actually six points below that of a year ago. The steadiness of sterling was the best possible indication of tho confidence felt abroad in Britain's future. This, doubtless, had been fortified by the Bank of England's recent repayments of large foreign credits without drawing further upon its gold reserves. It seemed to him that the conditions were so shaping themselves that other countries which had been forced for one reason or another to forsake the gold standard were more and more turning towards sterling as the best measure of value of currency during a period of suspension from the normal standard. , CORNER NOT YET TURNED. After referring to the definite but somewhat partial and uncertain improvement in trade, the Chancellor declared that the corner had not yet been turned. A great exporting country like Britain was forced to look overseas for-,a great part of its trade, and the catastrophic fall in the gold prices of commodities, which showed no signs of having reached bottom, had brought world trade to a deplorable condition. He referred to the enormous growth of trade restrictions all over the world which had imposed tariff barriers on British trade. Many of Britain's problems which were international in character could only be dealt with by the willing co-operation of other nations. Other problems were within our own control. During the last two years, while imports had remained practically stationary, exports had decreased by nearly 38 per cent. Such figures established the necessity for action. They desired to correct the trade balance by diminishing imports and stimulating exports, and to fortify their finances with fresh revenue raised by methods which put no undue burden upon any section of the community. SCIENTIFIC SYSTEM. They proposed by a system of moderate protection, scientifically adjusted to industry and agriculture, to transfer to Britain's own factories and fields work which was now done elsewhere. They desired a nexiblo plan which could be readily varied and adapted to suit changing conditions. By its judicious use they hoped to make more efficient their methods of production and distribution, and they needed also to use it for negotiations with foreign countries which had hitherto paid little attention to their suggestions. It was prudent to be armed with an instrument at least as effective as those which might be used to discriminate against British trade in other countries. They wished to use the opportunity of offering advantages to the countries of Empire for advantages which they now give, and which in the near future they may. give in return. They believed_ they had a policy which would bring new hope and new heart to Britain, and give rise to a new spirit of energy and co-operation throughout the Empire. SOME EXPLANATIONS. Amplifying the proposals announced the Chancellor said that where there was an existing duty the article thus dutiable would bo subject to a 10 per cent, general tariff. Regarding tho placing of wheat on tho free list, he reminded the House of the Government's intention to deal with it by the quota system. On the free list would also be found the raw materials of two great textile industries, raw cotton and raw wool. Tea was put into tho free list because it was considered more convenient to deal with it in conjunction with other beverages such as coffee and cocoa in the ordinary course of tho Budget. On the superstructure of the ad valorem duties there would bo additional duties on articles non-esssntial to the individual or nation, such as luxur ies or goods which could be produced in sufficient quantities at Home. These would be dealt with by Treasury orders after consultation with th« Depart-

ments concerned. It would be the function of the Advisory Committee to consider the circumstances ■of such articles in the ( light of the general interests of trade and the community. THE OTTAWA CONFERENCE. Regarding the Ottawa Imperial Conference the Government intended to approach it with the full determination to promote arrangements leading to a great increase of inter-Imperial trade. Regarding foreign trade powers would be given for a duty which might amount to 100 per cent., in addition to existing duties, upon goods coming from countries with discriminatory tariffs against Britain.