SNOWDEN’S WARNING

Hokitika Guardian, 1 August 1931, Page 5

SNOWDEN’S WARNING

HUGE CONVERSION LOAN. (British Official Wireless.) RUGBY, July 30. The budgetary position was the subject of an important statement- m the Commons, by Mr Snowden, during t ,e donate on the second reading of the Cims.didated Fund Appropriation Bill. Mr Neville Chamberlain, vefticing to the financial position, said his most important criticism of the budget was the relation between the Exchequer and the Unemployment- Insurance Fund The Chancellor had only postponed the inevitable reckoning. There was. however, no foundation for the want ol confidence in British stability. Mr -Snowdon saiu: “This is a time when a hghtlyspoken word,.or even a werngly-turned sentence, might have tin' most, serious consequences on the position. Britain, in tins respect, is peculiarly sensitive because we arc the great money market of the world, and it is essential that confidence throughout the world should be maintained m the stability of the London money market. Foreign credits are held in London to the extent ot probably a hundred millions sterling,” Me was exceedingly grateful to Mi Chamberlain for the testimony he had given to the fundamental soundness of tho financial position m London and the country generally, Referring to Mr Chamberlain's criticisms of the Budget, Mr .Nnow.lui said although it would be a sounder course if we could maintain the unemployed from current revenue, he could not accept the contention that borrowing was analagous to creating a burden comparable to the war debt. Borrowing was the alternative to increase of taxation, before which they must hestitate. The depression had deepened since the Budget- was presented, and supplementary expenditure of nearly £8,000.000 had been authorised. In addition, as tho result of the acceptance of the Hoover proposal, there was a further burden % on the Budget of nearly £11,000.000. That was a very serious position, but be believed it was a fact that perhaps with the exception of one country, our position was more satisfactory titan any other in the world. There was an impression abroad that the Budgetary position of Britain was hopelessly bank nipt. Nothing could he further from the truth, declared Mr Snowden, amid general cheers. He admitted that he had prepared a scheme for a huge conversion war 'oan, by which a very large saving in interest would bo effected, and which but for the recent financial developments would have been floated before.