The Guardian And Evening Star, with which is in corporated the West Coast Times. MONDAY, FEBRUARY 1, 1932. BRITISH FINANCE.

Hokitika Guardian, 1 February 1932, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times. MONDAY, FEBRUARY 1, 1932. BRITISH FINANCE.

Eaiu,y in December, Mr Neville Chamberlain, declared his confidence in the financial future of Grfcnt Britain, and predicted that there would he no serious deficit this year, and little reason for fearing one in the following year. All obligations, ne said, would be met and substantial provision made for debt redemption. His statement was not, apparently, unduly optimistic. The latest revenue returns have fulfilled expectations; the response made to the appeal for prompt payment of income tax in' •stalments lias been most gratifying. The manner in which the Bank of England is meeting credit repayments to the United States and France j.s a fresh indication of the solidity of the country’s financial structure. A factor in the gradual restoration of stability is the action taken by the National Government in placing unemployment insurance upon a more satisfactory basis. The indiscriminate payments of the “dole” Had become little short of a public scandal. Viscount Snowden, in his Budget of September, estimated that with benefits and contributions remaining on their present level the- total deficit to be met by the taxpayer in 1931 32 would amount to £190.000,030. excluding the ordinary Exchequer contribution of Half the total contributions of employers' and workers—or nearly £2,000.000 n week. When tHo National Government came into office unemployment insurance was costing tiie taxpayer £1.100,000 a week, lniIncdiate stuns were taken to reduce the cost. They included a reduction in the amount of benefits payable, the removal of glaring anomalies in “dole” administration, and the application of a “means test” which weeded out those who were not entitled to- receive benefits. How successful this action has. been can be judged from the fact that the Minister of Labour was able to disclose recently that the cost of the “dole” to the taxpayer had fallen from over a million to “a few hundred thousand pounds” a week. These few hundred thousands represent the difference between income and expenditure on unemployment insurance, and are, of course, made good by taxpayers through the Exchequer. Under the Socialist regime the scheme was net only insolvent, but drifting financially from bad to worse, and the Daily Telegraph did not hesitate to declare that funds had been, “shamefully abused.” The fund still carries a very heavy debt, and i.s still making a direct demand on the people, but its position is no longer hopeless. Indeed, for the first time since the unemployment problem in Great Britain became acute, the prospet of making unemployment insurance self-support-ing seems reasonably good.