The Guardian (And Evening Star, with which is in corporated the West Coast Times.) WEDNESDAY, APRIL 16th, 1924. HOME FINANCE.

Hokitika Guardian, 16 April 1924, Page 2

The Guardian (And Evening Star, with which is in corporated the West Coast Times.) WEDNESDAY, APRIL 16th, 1924. HOME FINANCE.

The British Prime Minister made many friends outside the ranks of Labor by his statement of the financial policy when outlined by him to Parliament. It wa« a reassuring statement which went a long way to clear the atmosphere. Especially gratifying was the announcement of a committee to consider the whole question of the national debt. Mr MacDonald believes that the time has arrived to ascertain how far certain forms of taxation enter directly into cost of production and hamper the trade of the country. This aspect naturally bears very materially on the unemployment question at Home, which is the most momentous task the Government is called upon to take in hand. Another matter which Mr MacDonald’s policy speech cleared up, was that affecting the proposols in regard to what is Irnown as a capital levy. The Capital Levy. Jpe said, is, in exactly the

same position as Protection, anti it would be sheer folly to say that the Government proposed to introduce such a measure, and it would be equally foolish for tbe Government to entertain any idea of doing anything of the kind. So far as regards the present Parliament, theiefore, the matter Is definitely shelved. This may be reassuring to some people, but really the City, says a London paper, never believed flint the project would over become a matter of practical politics, strongly holding the view that any benefit which might be derived from such a measure in reducing the National Debt, and thus lightening the burden of taxation', would be much more than neutralised by tho disturbance and loss entailed in putting it into force. In regard to tbe treatment of financial matters generally, the Prime Minister gave expression to some sound doctrines. A very favorable impression was created, and if the linos be laid down are adhered to tbeio will be less need for apprehension than was the case some time ago. So far as can he seen, the views of Mr Ramsay MacDonald are sound. In the debate on tbe Capital Levy, for example, be referred to two dishonest means of diminishing the National Debt—one, repudiation, ancl tbe other, inflation. Nobody, probably, imagined that even a Labour Government would propose a repudiation of the. obligations of this country, thus perhaps bringing ruin to thousands of those who have invested in War Loans, etc.; but there was certainly the fear that the new Administration would, as many Continental countries would have done, adopt tbe lilies of least resistance l>v a wholesale inflation of the curiencv for the purpose of providing ways and means. In regard to a matter which is much before the country at the moment, tbe Prime Minister said that whatever Government faces the problem of unemployment they ought to do so first of all with the idea of putting the iincmpioved men back in their own work, and therefore his Government will concentrate first of all. not on tbe relief of unemployment, but on tbe restoration of trade, adding that the Government arc not going to diminish industrial capital in order to provide lolief. Moreover, he repudiated the idea that the 1-abour Government's conception of capital is that it should be raided and distributed for consumption, thus bringing tbe nation to bankruptcy. The sanity of such a policy will do a great deal to uplift the Government in the i.pinioli of the general public,