BRITAIN TRIUMPHS

Hokitika Guardian, 13 June 1932, Page 2

BRITAIN TRIUMPHS

FIGHTING WAY TO VICTORY. HAS LARGEST SHARE OF TRADE Britain’s exports wore higher this year than in the first qu.nter in 1931. Britain is getting tlie largest -share of the world s trade. Breezy optimism’ and' undue pessimism are lo be deprecated. These are points from an important speech made in the House by tile Chancellor of the Exchequer. (British Official Wireless.) RUGBY, June T()j. M - Mr Neville CliaiWberlain made allimportant speech cn the tliiid reading of the Finance Hill, which was passed by the House of C ommons l»v '-I .9 votes to 3-1. The difficulties at present being encountered, lie said, wore common to every country and were not going to be solved in an I' inance Bill introduced in this country alone. Co-operation between the nations war necessary and, indeed, the only, way in which a solution of the prevailing problems could ultimately be found. Referring to debt charges and the prospects of undertaking a conversion operation, he said that when the Government considered the circumstances favourable it would act

promptly. . ' Dealing with the general outlook, h; said that some feeling of uuoasinets. which did not seem to he Well founded, bad arisen. He drprmated both breezy optimism and undue pessimism, and hoped that the House of Commons would keep a balanced judgment. Jt was futile to base any estimate from income revenue and surtax on figures for April and May, or to base any calculation for the whole year upon what had happened in the first two months, but lie saw no reason to expect that- there should be any appreciable fall in tlie yield of inland revenue including stamp and death duties, as well as income tax and surtax. They had no experience to make any reliable calculation of the yield of import duties. Any estimate must to a large, extent be conjectural The latest figures to unemployment were to some extent disappointing, but these were afflicted by the Whitsuntide holiday. The next figures might show a very different aspect of the situation.

CONFIDENCE R ESTOR ED. Comparing the existing situation with that prevailing before the first National Government took officce, he said that they had got to a position at which confidence had been restored in the eyes of the British people and in those of the world: It had come about to an almost embarrassing extent, The figures of unemployment which had been rising since in 1929 and 1930 had been cheeked. The Stock Exchange

price of the 3V per cent conversion loan last August stood at £77 12-5 6d and to-da.v at £BB.

“If Britain’s position is cii.ipared with that of other countries there is a good deal of ground for encouragement,” i-jaid Mr Chamerlain. “The trend .-of trade during the JanuaryApril period, as compared with the corresponding period of 1831, showed a percentage fall in imports. In the United Kingdom there was a fall of 12 per cent, but the United States suffered a fall of 30 per cent. French exports had fallen hv 38 per cent, and those of the United State,; and Germany by 36 per cent each, while e.<poits from the United Kingdom had fallen only about 7 per cent jn volume. The percentage fall in impoits to the United Kingdom in > the past three months/of the current year was nil, whereas in the United States it was 4 per cent and in Germany 12 per cent. fn regard to the fall in the volume of exports, Germany had' suffered 21 per cent, the United States 16 per cent and Britain less than i per cent’. 1 Had it not been for coal, they would have shown an increase The export of manufactured goods for the first quarter was higher than in the first quarter of last venr.

It was true that while Britain was getting the largest share of it. world trade, as a whole, was continually diminishing, illustrating the fact that no -ingle country- could prosper when the- rest of the world was depressed but the fact that world depression had been widening and deepening had brought home to every people an added sense of the realities of tho situation,

•In my view there is to-day in Europe a greater approach to unaniiniiy as to the cause of our troubles nnd the steps necessary to solve our problems than at any time since tho war,” said Mr Chamberlain. “Next work we enter upon a conference at which an earne-t endeavour will ho made to reach an agreement with the countries directly concerned and a solution of these difficulties, and 1 feel hopeful about the result. Lausanne may prove to lie. the turning point in tho history of Europe in these difficult days.”

NO CAUSE FOR PESSIMISM. Air Chamberlain continued that he did not accept tlie view that if these hope-? were disappointed further taxation was inevitable, or that the end of the possibilities of a reduction of size that would warrant the belief that national items of expenditure of a substantial reductions could bo made, however, involved matters of vital importance either to the.-safety of the country, or the standards of living, but if the Government felt that changes regarding them were necessary, they would not flinch from telling the House and country. On the whole they liad no cause for pessimism. On the contrary he believed that it was necessary carefully to watch the situation and lose no opportunity of reducing nationnl expenditure, where that could properly lie done,

The Government had already taken measures which lmd prepared the way for rapid advance as soon as general conditions favourable, They had taken measures through the monetary policy to set the stage 'for that rise iri wholesale prices which all desired, They had held the £ reasonably steady at a level not inconvenient to industry, and had enacted in this Finance Bill measures designed to avoid speculative fluctuations in the future value of sterling. They had instituted a system of tariffs on a scientific basis. They had entered upon an era of cheap and plentiful money. They had seen ideas on monetary policy in the United States running parallel with their own and might therefore, especially in view of the conferences at Lausanne and Ottawa, and, possibly later in London, think that this series of opportunities would enable them to contemplate the future with cool heads and with cautious, but reasoned optimism.