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Hokitika Guardian, 14 February 1933, Page 4

Bkp'ain’s chief domestic problem to be considered at the present session lies in. unemployment and finance. The two ments a northern writer. The two are practically indivisahle. The end of the tinam in 1 year is approaching, and if the result should prove loss favourable Ilian was predicted in the “grim” Bud. et of last April, the disappointmeih will he profound. It allowed fo v a nominal surplus of £796,000, hut no provision was made

for the December debt payment to the i nited States, which cost £29 500,C00 in sterling. However, a* the Chancellor of + he Exchequer explained at the time, the amount was covered “partly by recourse to the lower rates of interest on Treasury bills aaul partly by the funds provided for sinking hinds which are no longer required by statute on account of the r.se in the vailue of gilt-edged securities.” Ctartain loan redemption operations are suspended when the price of the securities concerned, in the open market, rise beyond a given level. The cost of the American debt payment has not, therefore, disturbed the budgetary position. Unemployment has, for the supplementary estimates issued on December 15, showed that the Ministry of Labour required £ 18,010,000 more than wa<s provided in the Budget. The only other item was a sum of £3,411,000, asked for because the hand annuity payments had not been made by the Irish Free State. This, it was explained, would he 'offset in part b.v the yield of customs duties on Irish produce. The cost of unemployment was the man disturbing factor. It arose because the level of unemployment had apparently averaged some 230,000 more than the figures on which the Chancellor based his estimates. The moot recent returns indicate that revenue in most departments has come fairly well up to expectation®, though it is too early yet to pronounce confidently on the yield of income tax The unemployment Item is tho main problem, because if it proves intractable it may upset expectations for the coming year’- when an easing of the situation through the savings'*by the great debt' conversion operations was expected. When the burdens imposed by the last Budget wore accepted it was hoped they represented the climax of the national effort to restore financial stability, lhe next few weeks will show whether Hi a* hope has been realised or again deferred.