BRITISH WAGE CUT

Hokitika Guardian, 15 September 1931, Page 3

BRITISH WAGE CUT

MR SNOWDEN EXPLAINS.

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

RUGBY, September 12. Mr Snowden to-night broadcasted a talk to the nation on the Emergency Budget. He explained that the Budget he introduced last April was, as he .stated at the time, a makeshift. He had. waited to submit a new Budget until he had the support of the recommendations of the Economy Committee, whose members were nominated by all three political parties. Meantime the financial situation got progressively worse. Mr Snowden described the stages of the British financial ‘ erisife following the grave difficulties experieced in Austria and Germany in June and July, and explained the nature of the danger with which the country was faced.

BONDHOLDERS’ PRQTECTOR Mr Snowden told the listeners that they could form some idea of what calamity they escaped by remembering what happened to Germany, Austria France, and other countries. British holders of French war loans knew something of what depreciation meant as four-fifths of their interest had been taken away by the depreciation of’the franc. The choice, roundly, • between a Budget with unpleasont economies and. heavy taxation, ami paper currency worth no stable value meaning ruin more or less for everybody. . » “I know,” he said, “the sacrifices you are being called upon to make are to you real and tangible, while the ruin, which would otherwise overtake you, is not so obvious, but it is just as real.” To restore confidence in British credit, the Budget had to be balanced. It had got into an unbalanced condition mainly through the call upon the Exchequer for the relief of unemployment. The trade depressio nhad also reduced very heavily the yield of taxes. 1 The Government had depided to cease borrowing for i liemployment, and to meet the cost of ielief out of current revenue, although it would add 60 millions to the expenditure in a full year. They had to recognise in a time of great trade de-, preseion that the country coud not afford the expenditure which might he incurred in prosperous times. The Governments .econoties Amounting to 70 millions, were severe but not intolerable. >

DEFENCE OF THE CUTS. Mr Snowden defended in detail the cuts in the unemployment benefit and in the salaries of ; teachers. Regarding their income tax changes he stated that four millions more persons would have their incomes brought under review. Only one and a half millions of these would;pay. the,tax, and the tax would be small.; .The contribution he was asking from people, with incomes of £2OO to £3OO, was not large, and he believed .they would not complain, making it to the national need in the emergency.

GRATITUDE TO BANKERS. The Chancellor described stlie talk of a “banker’s ramp,” as “unadulterated nonsense”’ .If, the facts were known,..the country would be eternally grateful to the Bank of England fcr the efforts it had made to fulfil its duty as* custodian of British credit. “The industrial depression is slow to lift,” concluded Mr Snowden, “but the country ha s come through hard time triumphantly in thep ast to an era of greater prosperity.” It would happen again if the .people showed true patriotism. .

CAPITALISTS REASSURED. RUGBY, Sept. 11. The Stock Exchange as a whole, today reached favourablyy to the Budget British funds recorded appreciable advances. The Government’s taxation and economy proposals has generally a good reception. Financial opinion reacted favourably to the Budget. Judging from the foreign press comments reaching London other countries, including British Dominions, are also greatly impressed by the enquivocal manner in which taxation has been tackled. Typical remarks are those of the “New York Times,” which describes the Budget as “a striking testimony to the determination .of the British people to keep at all co s ts their public finances in order,” and the South African “Gape Times,” which regards it as j‘a brave honest effort to meet n serif-vs situation.” “Le ..Journal”, says: “England’s friends, . particularly in. France, will follow the Government’s efforts at re habitation with'interest, all the livelier ip- that consolation of, Britain’s credit is one of the conditions most essentia} for a return of the worlds prosperity.” , This comment is typical of the attitude of the French press to the Budget. . ... ; ,

\ PREMIER’S CLAIM. TO BE STILL LABOUR’S SPOKESMAN! ! !r RUGBY, September 11. Mr MacDonald, moving tKe second reading of the. National Economy Bill in the Commons, . said the general policy of the Government had received the sanction of the House that

they wSre now setting their heads to the details. ; The emergency h«d been allayed for the time being, but the financial'-position lias to be . made sound as well as the Budget balanced While new resources were being put into the Treasury, economy .must also be made effective, and the Bill giving the Government power to,issue *" the necessary Orders-in-Council, constifcut ed a procedure as drastic' as the savings which were being effected. The schedule in the Bill dealt with departments which would be affected by these OrdejYs-in-Oouncil. The figures of the scheme worked out as follows —7O millions had to be , found b> economies, 80 millions by taxation, of which 57 millions, considerably more than half, had to be found by direct taxation, and 20 millions was the provision made for a sinking fund. Continuing, the Prime Minster said that when the new Government game in, they were greatly aided by the work done by their predecessors, who proposed a cut, not of 70 millions, hut of 56 milions. He understood that the Opposition intended ,to fight the Government’s programme right through hut he must emphasise that they were opposing the poicy that had been begun by the previous Government before its resignation.

The' Prime Minister, concuded: — “The ex-Ministers now in Opposition coyld not remain free from responsibilty for a large proportion of the drastic cuts, which had been introduced.. He said that in : the background was a conversion scheme; not esti- 1 mated as yet, hut which would be launched at the earliest possible opportunity, and was going to'effect considerable savings. One dramatic moment occurred dnrin the speech, when the Prime Minister remarked:—“l speak for Labour,” and being intern&ted by the Opposition, exclaimed'. “They can. take the label'from'my back but they cannot take it from my mind.” Dealing in detail with, departmental economies, the Prime Minister mentioned that Airship 11,100 was to be disposed of and the Cardington aerodrome placed on the care and maintenance basis. The airmasts and equipment in various parts of the world built to facilitate airship flights would he reduced to the same status. Referring to the cuts in unemployment relief, the Prime Minister said that they considered it the imperative duty to put unemployment finance on such .a sound position that (everybody (having .financial transactions with /Britain, especially in the forms of loans, .would, be. satisfied that her financal fabre was sound. . . Several members of ■ both sides of the House spoke after the Prime M nister, and the debate will be continued and cineluded on Monday.

LABOUR CHALLENGE.

TO ATTACK ON THE MASSES. AND ORDER-IN-COUNCIL RULE. LONDON, September 12. In the House of Commons, Rt. Hon. J. R, Clynes (Labour) moved an amendment in regard to - the Budget policies as follows: '■ “That this House, .while recognising the necessity of preserving the country’s finances on a sound basis, cannot accept the Budget proposals depriving the masses of tlk- people of the ne essities of life while others remain in the enjoyment of luxuries, thus aggravating the unemployment by restricting .purchasing power of the wage earners; nor can this House approve of the Government’s Bill abrogating Pqrliamntary control by authorising Or-ders-in-Council that are designed to supersede existing Acts of Parliament or to reverse a settled .policy without the House’s specific assent. Pioh Hon. Tom Johnston (Labour), speaking in support of the amendment Said that the Government were now creating class war. There were l.'rther recriminatory passages when Rt. Hon. Mr J. H. Thomas revealed that , a sub-committee of the late. Cohinet, . including Mr Henderson, proposed cuts, in expenditure of seventy-eight millions, not fifty-six millions. The debate wa s adjourned.

FIDUCIARY NOTE ISSUE.

CONTINUED IN BRITAIN.

LONDON, September 11

The Treasury has issued a Treasury minute which authorises the fiduciary note issue of 275 millions sterling by the Bank of England for a further period of three months. The previous period authorised was three-weeks.

SEAHAM’S CALL.

FOR MACDONALD’S RESIGNATION. ’ LONDON, September 12. After three hours of ; discussion at a Delegate meeting, the Seaham., Labour Party, by 40 votes to 39, confirmed its Executive’s resolution requesting the Prime Minister, Mr Ramsay MacDonald, to resign his seat in Parliament, as a member for Seaham.