GRAVE WARNING

Hokitika Guardian, 12 May 1932, Page 5

GRAVE WARNING

BRITISH FINANCE

FURTHER TAXATION POSSIBLE

(United Press Association. —liy Electric

j.eiegrapn. —'--up.) i ignt.y

eO-\DON, May 11. Mr Neville Giuiubwmin (Chancmioi of une re*£>oiivii.. c , l*> tuiiso of inc CioVviiiiiitiit at JictUk“ trs' annual dinner, said t.;at alone would not cine their dunemties.

industry, aided by the t«o.»e.nmeut .\ .monetary policy, must do tins.!' Suiwas no longer anchored to gold. It nad, lie said, not mat.rial.y leit the levei tnat was suited lor tlie needs ol' industry. The equilibrium oi sterling

was at present, however, niiscab.e. There was a tendency for existing great accumulations' of liquid capital to concentrate in sterling exchange. r lhis disturbed the traders in Britain and equally in India and in the ofhei countries with currencies linked to Britain’s. Hie hoped that special measures, like the new Exchange Equalisation Account,• would later become unnecessary. The Government, he continued, desired ‘to do everything to raise the sterling prices of goods to a level permitting remunerative trade, but this could not be accomplished without international co-operation.

; Mr Chamberlain added: “It may be one of the objectives of the Government to take such steps as they find possible in order to raise the sterling priceis level, thus making it possible to conduct trading (remuneratively.” He emphasised that his late budget had approached the limits of the amounts that were obtainable by direct taxation, blit any real relief for the taxpayer would involve changes oi national policy that were not contemplated. Nevertheless, if more drastic reductions of expenditure Were- necessary, responsible citizens could he trusted to support the Government. Judging from the headlines in the newspapers, they attach the utmost importance to Mr Chamberlain’s speech, which is described as “a grave warning.”

The “Sun” understands that the Government is preparing for further economies totalling in the neighbourhood of fifty millions sterling, and involving cuts in education, in research, in housing and in several State sub sidjes.

PRICE STABILISATION

LONDON, May 11

In the House of Commons, Mr Elliott replying said the Government would do their utmost to co-operate with friendly nations both inside and outside the Empire. The Government had embarked on two great policies which were contained in the Finance Bill, and which dealt with tariffs an<l with currency. But these were not boing used either to inflate or to deflate the currency, or for the purpose of economic war with other countries. The sum was inadequate for such a purpose, but it would check fluctuation and give us a period of smooth water. The Finance Bill was read the second time by 465 votes to 47. ■

The resolutions authorising the silkduties were carried by 275 to 30.