BRITAIN ’S FINANCES.

Taihape Daily Times, Volume XI, Issue 3330, 7 November 1919, Page 6

BRITAIN ’S FINANCES.

A TREMENDOUS BURDEN.

ON-LY UNITED PEOPEE " CAN

V-‘VIN THROUGH.

MR LLOYD GEORGE OP'I‘II\II.STIC. _ LONDON, Oct. 30.

’ Mr Glynes, speaking in the financial debate, moved an amendment declar‘ing that the present national war expenditure was uiijuistrfiable, urging drastic economy, and advocating ‘a levy on capital and the_reversion to the State of wax" fortunes for the purpose of reducing the national debt. He said that the Labour P»-.l»rty contended that the‘. financial situation was so extra~ ordinary as to call for e.\:traordin-:1-ry measures. He urged that inquiry be made into the questionjof‘a capital levy, _ ~ The Premier, replying, expressed the opinion that the 'C‘h»aneellor had knocked the bottom out of the case of his critics. He emphasised their disagree-. ments in regard to where to retrench. The greatest expenditure was for the army and navy, -and he pointed on: that the navy would presently’ be-: oily the pre-war navy, and it would be less at the end of} the financial yea-I‘, 'D(-.:ll-ing with details in regard to redumion ot the personnel of the ai"-iiy and navy i and air forces, he said that thelfore-Ii cast for March 31st was .t:'or‘S‘;‘-5,‘:00i men. Actually there would be only» 300,000. Next ‘year there w-:i:1l(l he a substantial _«-,urplus for reduction of the debt. Provi:=ions for the liquidation of the debt in 50 years was one of the

most. magnificent propositions concerning intel'n::.‘.tional liability e\*,er {advanced, -and was a testl'mon_v to British courage and ‘fo:'esigh't. The Premier said the Government had established pensions. amounting to 120 millions annually. There had been exceptional charges in the current year, owing to abnormal (iifieillties. [The British army had been more scattered over the world than any other army. .

In reply to ‘a. query, Mr VLloydl George said that they 11ad'evacuat.édl Armenia to eeenomise. They were 1111able to police the world, and he ll_onest- I 1y thought other Powers. ought to share . the responsibility. Then the Government was criticised for not (lemobilis—-in-g more quickh? on the gl'oun};lsVtll:lt. they knew Gcl'zn:my would Sign the‘ Treaty. “On the colltrary,” he s:lid,l “the conference did not know till the 5‘ last. minute that Germany would sfgml and then she only signed because sheknew that Britain had 111ai11ta?n-Cd :1“ number of reserve alivisions fin Fl'allc: [ ‘ready for this evelltuzlli‘.y,.:.22«l \’-.'l_’(“.-"1 1 ‘which force Focal: \‘-1115 pl'e]»:ll'e£{ to! marcll to Berlin. \‘v'itllol;t ’(l‘1'Is_111A1'(le_-‘ Illflbilised force, we slmuld have substig Ituted defeat for vi(:to:'_\', and tln'.:~\\'n!

away -a-11 the terribie sacrifices to make

,« accounts balance‘ in 1919. Any Government doing this would have deserved inipeachnient and undoubtedly have had it.” Owing to the way in which We were dealing with financial difficulties, Britain need not fear comparison with any country in the world. Conscription in Germany had gone, and her navy was at the boftoni of the seal This significant t‘a'et gave grounds for‘ confidence tin the finaneiuz-11 stability of the future. Bl'iTain could weather this storm as she had weathered every [other storm. Never'tlle'less, -he hoped ,that the economisers would not deny ‘expenditure of moneys on objects essential to national life, like educva-I ‘tion. Mr :Lloyd George urged that true economy was increased produc-i tion. Depression of the sovereign was at the presenttlie heaviest tax. The only remedy w-as production, which could be got only by the CO-oDol‘€ltioll of’ rafieonteiited people‘. It was the igreatest folly to ‘urge cessation of ex-I penditure in the health, comfort, and: ‘training of people who had been p:'e—i pared to soacrifice their lives on the _ battlefields for the .country they loved. Mfr _Bonar Law, in winding up the! debate, referred to the amount due from.Gernlany for the up-keep of the army of occupation. This first installment of Germany’s- debt would undoubtedly be obtained. As regards our eiglit tllous,and million debt, certain items should be oft’—set against it. The Allies owed us over 1700 millions. Wen owed America. 842 millions. The lat. ter debt was off'—s“et by the debts of! the Allies to us. Then the Dominions owed us 200 millions. and India 221 millions, ‘bringing down the debt to 7000 millions. Furthermore, he said he did not think Russia would always be a) bad debt. As regards the German in-] demnity, he ‘Was confident We would get a considerable sum to reduce ourl debt. - Sir Donald McLean asked permission to move an amend-ment. The Speaker ruled it out of order. ‘ Sir Donald McLean regretted that he and his colleagues were unable. to vote against the Government, because, they could not enter the lobby with ‘the Q Labourites unless an inquiry was held} before the capital levy was decided. l The House rejected the Labour ‘- amendment by 405 votes to 50, the"! minority being almost exclusively’ I.aboul'ites. ‘ U The Government. resolution was thenl adopted unanimT)usly. _ In the House of Commons, Mr Bonar Law declined to so frame the reference of the war fortune inquiry co-mmitteel ‘that it would permit investigation. to; the question of a capital leyV_ i