BRITISH DEFICIT

Hokitika Guardian, 15 August 1931, Page 5

BRITISH DEFICIT

TO BALANCE BUDGET.

BANKERS’ PROPOSAL.

(United Preno Association—By Electric Telegraph.—Copyright )

LONDON, August 14

jhe “Daily Ilera'd” says:—After the Cabinet lias completed its proposals, they will be placed b. fore the leaders of the Liberals and the Conservatios tn Thursday next. Par. Lament ovVill be recalled early in September, to ■ pass necessary legislation to assure the Budget being balanced o l tho basis of an equal sacrifice. Tim lias the complete support of the City, and, to this extent, .the concurrence of all the Opposition leaders. The “Herald” says that the proposal of the bankers that were presented to the Cabinet include:—A special flat rate tax on all incomes from fixed-interest-bearing bonds these to include not only Government securities but industrial debentures.

Tho “Morning Post” says:—“The Conservatives are gratified that the Government is now fu’ly alive to the seriousness of the situation. An authorative statement is expected from tile Government shortly, fol* the dual purpose of convincing the Labourites throughout the coutiti : y, ahd of giving alt dssUl'aflcfe abroad, THE TAX OPPOSED. HUGE DEBT CONVERSION URGED, LONDON, August 14. The Cabinet sub-committee, which is to devise plans for balancing the budget, resumed deliberations. The progress of the Committee’s examination of the economy proposals, is not 'for tho present to lie disclosed, and some time must necessarily elapse before the task is completed. Mr Snowden is anxious to launch a conversion loan scheme when the conditions are favourable. Heads of national expenditure were examined by the Cabinet Committee which it is reported, drafted in broad outline, certain proposals which will be examined in detail by the Treasury. The situation is an emergency one and! emergency methods must be found for dealing with it. Mr MacDonald returned to Scotland this evening. The Prime Minister will return to London to attend the next meeting of the Cabinet Committee on Monday, when more precise examination of the proposals will be undertaken. A full Cabinet is summoned for Wednesday. Almost immediate legislaticn may bo necessary to give effect to some of their decisions. It is recalled that the motion for adjournment of the Commons provided that if it appeared to the Speaker that public interest dp mantled a re-Opeliing before October, he blight fix. a date for tlm earlier meeting,

BIG SACRIFICES FOR EVERYBODY. RUGBY, August 14. It is generally recognised that economy measures must involve sacrifices by all sections of the community, and the plans are now engaging ■ attention. It is understood that these will be designed to secure as far as possible, an even distribution of the burden. Special interest attaches to the nature of the help the Government is expecting from the Opposition partes in the economic plans. It is generally assumed that the meetings of the Cabinet Committee wou’d be followed by an invitation to the representatives of other political parties to a conference.

Sir Donald Mac Lean (Liberal) in a speech referring to the financial situation said: “Our budget is the key to the situation, not only here but internationally. We are still the centie of international financial stability. In fact the bankers of the world must necessarily at i the present prepare fo a budget" so balanced that everyone can see the facts have been faced, and the necessary sacrifices made. The task must, be undertaken as was the war, by the nation as a whole.” CONTINENTAL INTEREST. BERLIN, August 14. Britain’s crisis is being 'followed with the greatest interest. The newspaper “Boersen Courier” heads the news: “MacDonald also draws up a Self Help' Plan.”