BRITISH FINANCE

Hokitika Guardian, 18 March 1920, Page 4

BRITISH FINANCE

(By Electric Telegraph—Copj.ight.) (Imperial News Service).

LONDON, March 16. In the Mouse of Commons, the debate on high prices was resumed. Mr MaeLean moved the reduction of the civil service estimates by one hundred millions sterling. He urged that the proceeds of the Sale of surplus war stores should go towards the reduction of the floating debt. Hon A. Chamberlain agreed on the importance of a reduction of the floating debt and pointed out that Government had began to reduce the national debt, and 'had ceased to borrow in order to balance the current expenditure." He expressed concern in regard to the 'extra' ordinary expansion of business in proportion to the companies, which tended to result in increased competition for limited supplies of materials and labour, and was of opinion that those capitalising or recapitalising their businesses on the basis of present inflated profits, were taking a dangerous -course. Mr Chamberlain emphasised that Government alone could not carry out the depletion of credit. Financiers must co' operate and severely scrutinise the de* mands for credit. He pointed out that 567 millions sterling of the civil service estimates were made upas follows: Forty-three millions sterling for purely accounting, change, not expenditure at all; forty-five millions for. bread subsidy, which he agreed should be ended as quickly as possible; twenty-three millions owed the railways for maintenance and renewal during the wartime; fifteen millions for coal, of which twelve millions was repayable with interest; thirty six hams to Allies including ten maximum relief loans to Central Europe, and eight for relief reconstruction in Belgium.

Despite his warning that new expenditure must involve provision' for new revenue, the Commons sanctioned ten millions additional for old age pensions, lir millions for a housing subsidy, three millions war bonus to the civil service, fifteen millions in additional to education and twenty-two millions unemploy' ment donations and resettlement of exservice men; and 123 millions war prisons. This made a total of 348 out of 557 millions sterling, of which he believed not one penny was challenged at present. Hon Chamberlain asked how could ho save, in these circumstances.