BRITISH BUDGET

Hokitika Guardian, 22 April 1932, Page 5

BRITISH BUDGET

TORY ADMISSION HIGHER COST OF LIVING. (By Telegraph—Per Pree Association ) LONDON, April '2O. In the Budget debate, Sir R. S. Horne (a Conservative ex-Chancellor) i.ie country was in a sounder position than in the past two years. The confidence of t.ie whole world in Britain's financial methods had been re-

cured. D.-spite .sacrifices people preferred to endure a little longer rather

that imperil this confidence. Matters were ‘developing hopefully for the conversion of two thousand millions worth of five per cent, war loan, which would considerably lessen expenditure. The currency now overshadowed tariffs. Mr Cham be Gain ought to inform the business world of his objective in tho management of the value of the pound. The aim should be to raise price levels and maintain those levels a long way above the present rates. ’Prices were lio'v below those of '1913, though costs were immensely higher. With a loau of 150 millions it would be possible to keep the pound at any level desired, and 'the revival of confidence would prevent it going too low. The problem would be to prevent it going too high.

The natural result of Treasury control would be to raise prices, which was the fir-t necessity to prosperity. We did not consider 'the position intolerable in 1928, when prices were twentynine per cent, above the present. The Lausanne conference would have the fate of the world in its hands. He was glad that Britain would speak with revived authority and would be able to show that altruistic compromise was the real .road to enlightened self-inter-est. No nation, could possibly profit ov « neighbour's distress.

Mr Wedgewood agreed that the only thing that mattered was currency policy. Surely a National Government could have a national policy on this subject, and tell us whether it is going to be a re-inflation of priced. Mr Amery said that the sugar preferences might have been more generous, and should be extended to the Dominions, even if it entailed adding a farthing a pound 'to foreign sugar. Our monetary policy which meet the Dominions’ interests, as well as ours, would be as important a subject for discussion at Ottawa as the fiscal policy. Only by getting back to tho pr)r* levels of 1928-29, could the production of Britain and the Empire be revived.

COMMENT in press.

THE beet SUGAR industry. The “Manchester Guardian” editorially .referring to Mr Chamberlain s decision to continue the subsidy to the British beet-sugar industry, describes it “as the most scandalous of all white elephants and a denial of all the principles of economy.’ Having bolstered up an English industry Mr CliambeilatD could hardly do less than respond to appeals from the sugar growing colonies. Though he was given them only a limited benefit, the principle of differential treatment will not soon be forgotten by other distressed sections of the Empire,

The Budget proposals had little effect on -the stock markets although disappointing at the absence ol a reduction in the beer duty re-acted on brewery shares in general. Mr Baldwin, rep'ying to a question a« to the desirability of having a second budget after the Lausanne and Ottawa Conferences, said he was unable ho go beyond the Chancellor's statement that proposals might have to be submitted to Psmliainem later, to give ■effect to the measures agreed upon at Lausanne. Although keen disappointment is felt at the absence in the Budget statement of any remission of taxation. it is generally felt that signs of improvement, although apparent, are not yet sufficiently marked, or tabled to justify any relaxation effort. “The Times” .says; Mr Chamberlain has given the cmin'trv a genuine sinking fund, which should entail a real net" redemption of debt of no less | than £32,500,000, and which in a your j when incomes have shrunk and world prices are lower, represents a very creditable step which' should enhance British credit. It is emphasised that the exchange equalisation account tor which the Cu.iiiicellor is seeking powers so borrow up to £150.000,000, will no) lead to an increase in debt m tin- ordinary .sense. He merely desires fo invest paper pounds in gold, or foreign gold ciirrcuries. 'Lately, there has been a considerable loreigll (loin itill for sterling. which is the j paper pound and iUs dollar value has j risen from about 3.23 to about 3.38 <|ii |;irs. This demand Ins been partly dm* to the inu-asures si effectively 1 'taken to balance the Budget. but I> :n i - Ily also to Hie. loss of conli.fence in I ~tlier cmri'rruies , The Dad .' News" descrioes it ' S ! a "cmitv on ’ but whi.le open to iitlie.ism, is more S a t isi artery than might at, an v lin i- have been lea red. The ‘-Morning I’osl" while welcoming its soundness regrets the absente I of iron and steel taxation concessions, and thinks the budge, noljl.’e for the constructive measure of establishing an exchange equalisation ;o"mnt.