BRITAIN’S FINANCES

Hokitika Guardian, 17 September 1931, Page 5

BRITAIN’S FINANCES

PLEA FOR NAVAL OUTLAY.

(British Official Wireless.)

RUGBY, September 1-5

The Omniums, by a majority of 57, adi.j.ted tne Ecom-my Bill, providing lor a saving of seventy millions. The dt-oate was largely devoted to argument concerning the scope of the economies acceptable to the Labour Cabinet prior to its resignation. It was admitted that the economies amounting to fifty-six millions, were provisionally approved, but Air Lansbury declared that the Labour Cabinet was not unanimous thereon. Mr Snowden, said Sir H. Samuel maintained, however, that the exAlinisters could not escape responsibility, agreeing when in office to cuts which as an Opposition, they criticised.

G-uiuding the debate, Sir Austin Chamber lain said that 'though the measures adopted, averted immediate dangers, the completion of the programme of constructive policy was necessary to stimulate industry and commerce, and the work of building up must be commenced as soon as the immediate task was concluded.

Referring to tne five millions cut, irrespective of salaries, which was being made in the Defence services, Sir Austin Chamberlain said there was no intention to interfere with existing naval contracts, hut whether the programme of vessels not yet begun would he affected, was undecided, until various potential methods of economy were detailedly examined. The Government would he extremely reluctant to interfere with the programme which was well within the London Naval Treaty.

SNOWDEN’S VIEW

UNEMPLOYED' THE CAUSE.

OF THE BUDGET CRISIS

LONDON, September 16

Mir P. Snowden, replying in the Hons© of Commons regarding a desire expressed that he should be converted to tariffs, said that he had not-depart-ed from his professions and principles, even though Sir John Simon (Liberal) had fallen back on an emergency tariff. Air Churchill, said Air Snowden, with his well-known ability as a “quick change artist,” had become a full-blooded protectionist. If there were any prospect of an international conference being held on gold, he said, Britain would willingly participate. Britain’s budgetary difficulties were not due either to the Reparations or to the German crisis. The crisis in Britain began in February last, as he had warned the House. The main cause was the unemployment, which in revenue and in borrowing was costing one hundred millions yearly. No budget in the world could stand such a sudden extensive strain. He said that the Opposition had not waited an election more earnestly than he did, Air Snowden added that many of his former associates were cheering to keep up their courage, recognising that within a few weeks- the House would not see them again. The Budget resolutions were carried without a division. ELECTION POSSIBILITIES. LONDON, September 16. Mr Philip Snowden’s reference in the House of Commons to the possibilities of the early general election has rekindled the speculation on the subject. The Conservative Party rank and file have been from the beginning most eager to get to the constituencies, where they expect to- gain a huge victory on a full protection policy's but there is still a powerful section in the National Government which regards an immediate campaign as being inadvisable, and as dangerous to the newly established foreign confidence. The Government’s decision regarding the matter of the election is expected to be made this week.

The “Morning Post” forecasts an election in November.

Mr Henderson spoke at a meeting of the Labour -.Party on Tuesday. He reviewed the Cabinet’s financial proposals, but no resolution was submitted. It is understood that it was regarded as advisable to let sleeping dogs lie.

The Liberal Party meet on Wednesday to consider Sir John Simon s latest tariff declaration.

FRANCKS ANXIETY. AT PROSPECT OF BRITISH TARIFF. PARTS. September 16. France is alarmed at the prospect of a British ban on luxury imports, .been,use Britain is her greatest customer, having last year absorbed approximately fifty million sterling; worth of French exports, half of which were luxury goods. There is the other side to the picture, however, because in the event of France retaliating, fortv-one millions sterling worth of B’itish imports would be badly bit, including one and three-quarter millions sterling worth of Australian wool.

The French newspapers voice alarm at the prospect of a ban on such imports in no uncertain terms, and tbev noint out that at this moment, when France has ceme so readily to the aid of Britain in the way of credits, it is not the time to heavily handicap France’s exports.