BRITISH DEFICIT

Hokitika Guardian, 13 August 1931, Page 6

BRITISH DEFICIT

PREMIER'S STATEMENT,

(British Official Wireiess.)

RUGBY, August 11. The Prime Minister arrived back at London to-day. In an interview Mr MacDonald said that he had completed his study o-f the recent report of the Economy Committee, but he emphasised that the Government’s attitude would not be decided until the meeting of the Special Cabinet Sub-Committee on Economy was held at the end of this month'. LONDON, August 12.

“The Times” political writer says: Prominent bankers have attended, during the past five hours, a- conference between Mr Ramsay MacDonald and Mr Philip Snowden. Both are absolutely determined to balance the Budget of 1932. They have decided; to summon the 'Cabinet Economy Committee to-mor-row, . instead., of at the end of this month,, These meetings probably will be followed by conferences between members of the Cabinet and representatives of the Conservative and the Liberal Parties; though there is no question of inviting the other parties to join in a National Government.

CONTENTIOUS LEGISLATION

LONDON, August 12.

The “Daily Telegraph” gathers that the Government hopes, possibly next week, to arrange for a joint conference with the Leaders of the Conservative and the Liberal Parties regarding the measures that are necessary to reduce the abnormal expenditure. In.this event, Mr Chamberlain will represent the Conservatives, and Mr Herbert Samuel the Liberals.

The Ministry argue that the carrying out of the recommendations of the Economy Committee’s report involves contentious legislation, for which the whole House of Commons must hear the responsibility.

LONDON BANKERS’ DEMAND

LONDON, August 12

The “Daily Mail’s” city editor says ; “One of the chief reasons why the Prime Minister, Mr MacDonald, has hurried back to London was a serious letter that was addressed to the Government by the City of London bankers. The letter was couched in the plainest terms, and it urged drastic retrenchment, in order to reestablish Britain’s credit.”

HUGE DEBT CONVERSION

ON AUSTRALIAN LINES

LONDON, August 12

The “Daily Herald” says:—“The bankers scheme of ; conversion for Britain. The hankers are aguing that- while a normal conversion of Britain’s debts has no chance’at present, an appeal might he made on the ground of tire national emergency, which appeal would carry Weight if the large bond holders, such as the banks, were to agree to the proposal. The “Herald” says that such a conversion is estimated to save between twenty and thirty millions per year.