GENERAL APPROVAL.

Manawatu Standard, Volume LX, Issue 125, 26 April 1940, Page 7

GENERAL APPROVAL.

BRITISH PRESS COMMENT. LONDON, April 24. The full principles and details of the Government’s proposals for financing tiie war which were expounded in Sir John Simon’s Budget statement, desspite their drastic character, meet with general approval. British Press opinion is that the Budget is a hard but just one. The British public, the Times states, is resolute enough to see a full realisation of the sacrifices the war will entail. The Daily Telegraph says that the Chancellor was aware tlrat he could rely on the unanimous support of the country for a bold, realistic approach to the problem of meeting the stupendous cost of modern war. “He has taken full advantage of that assurance to impose heavy increases in taxation,” says the paper, “and whatever criticism may be raised in detail there can bo none against his general principle of gathering in large additional revenues out of the taxpayers’ pockets. “The Chancellor’s drastic plan to limit industrial dividends is surprising to the Stock Exchange and investors. Industrial ordinaries are thereby robbed of much of their speculative attraction. The purchase tax will be welcomed. The city is of the opinion that the Budget is no worse than was expected. It approves the rejection of the compulsory savings plan.” The Times characterises /the Budget a? one which possesses the great merit of stating without concealment or softening the truth of the financial position. TAXES CRITICISED. The Daily Express criticises the proposed purchase tax foreshadowed by the Chancellor, and says that in effect it is a sales tax, though it carries another name. The Daily Herald adds to this criticism that such a tax would increase the cost of living. The Daily Mail, in a leader, says the purchase tax makes the Budget bad lor the shopkeeper and the trading community. Much probing into the structure of the various industries will be necessary before a basis for the tax can be found. It asserts that the tax will lead to increased prices and increased wage demands, resulting in the very process the Government desires to avoid. Whatever its purpose, the response of the trading community would be hostile. The Manchester Guardian,' in a leader, says the Chancellor’s courage failed him. “The Budget is less drastic than the situation warrants,” it adds. “The estimated expenditure is well below the rate _ ot Germany’s spending, which is nothing to be proud of, but a reflection on the imperfect mobilisation of our resources.”