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BRITISH FINANCE.

.NO REASON FOR PANIC.

SEW TAXATION UNLIKELY,

DEBTS OF QUE ALLIES,

By Telegriph.—Press Ann —Copyr'ght.

London, October 23, There was great public interest shown in the debate begun in the House of Commons on the question of national expenditure.

Air. Austin Chamberlain (the Chancellor of the Exchequer) opened with the Government motion that the House, realising the serious effects upon trade and industry of the enormous financial burdens resulting from the war, promises its hearty support to the Government in *ll reasonable jproposals, however drastic, for the reauction of expenditure and the diminution of the debt. Mr. Chamberlain said that, while the position as disclosed in a recent White Papej; yw grave, there was no reason for a panic. • The situation to-day was netted than lie had anticipated in August The tax on revenues was coming in extraordinary well, while Customs and excise were now estimated to yield 88% millions above the Budget estiJnate.

Tea and tobacco in the Budget estixutes would also be exceeded, by 4 and 14 millions respectively. This was important, as it was eloquent of the spending power of the people, which was a fgrest factor alike in social stability and xeventae production. Indeed, he no TMgOT thought that new taxation would o® required to balance the incomings and outgoings. In .dealing with the increase of expenditure over the Budget estimate/he mentioned that Italy and France owed fa much more than was anticipated. •AitMY AND NAVY REDUCTION.

In replying to denunciations against. th« administrative expenditure he d»if the -whole organisations crMted by the war were swept away, and the staffs of all departments re£*ooo «v> £ re v war Balaries ' onl y £22,000,000 would be saved. He announced that the unemployment donation would cease on November 21. As regards the bread subsidy the Government thought it impossible to terminate ifc immediately. :?e ; . proceeded to announce drastic Wld immediate Army and Navy reduc- • toons, namely: Home Forces, by 217.MOmen; Rhine Army, by 116,000 men; fAnrty" in France and Flanders, by 130. men; Black Sea Army, by 6000 men'; £nnjr m Egypt and Palestine, by 22,000 tnen; Army in Mesopotamia by 7000 Inen. These reductions were to be- ®^ tive on November 15, while * th ®, «■ Meeopo'TT. te reduced by 94,000 ineludmg the Indians. ' ' v 5f V * 1 , rednctions Poinded five Wtleships of the Home Sleet which £#d gone into spwial reserve, while one £n , There had bee » large ships under construction, showing a saving of £18,000.000. ine permanent personnel of the \avy is to be reduced by 16,000 men. ~This Mowed that Britain was leading the ' dls ?T mamellt amon g the nations of the world. Plan to reduce debt. Mr Chamberlain proceeded to deal witt vanous proposals to reduce the National Debt. He denounced a general capital levy, because it was unfair, encouraged extravagance, deterred from j saving, was detrimental to the influx of 1 foreign capital, and if once introduced for a good purpose the public would feel I BO seeurity against its introduction for other purposes. The question, of a special levy on propta accumulated by reason of the war Stood on a different footing. Ho did Ji 4 r! pnt ! «l Dit y of the abstract prineiple <rf such a tax, but the difficulties were immense. However, a select committee would be appointed to advise tn* Gortnunent. fte concluded by prophesying that a feutartantial surplus would be available in 1920 for the reduction of the debt Without additional taxation or borrowing. Our burdens were heavy but our Shoulders were broad; there was every far eautlon, but none for panic. Mr. Churchill stated that, owing to toe reduced armies of occupation, Germany's indebtedness had been reduced to 48 millions. The' amount would not oe received this year, although Germany had paid about a million in currency for {the use of troops in Cologne. DEBT OP THE DOMINIONS. The Dominions owed the War Office fifty Slfllioiiß in connection with the maintenance of troops in the field in war time. He now anticipated that, owing to financial difficulties in Australia, he .Would receive only 15 millions out of •the 33 allowed for m the Budget, but the other 20 was a good debt on which • Jthe Commonwealth was paying interest. : He pointed out that 67 out of 118 millions not in the Budget was a War (Office deficit. The remaining 51 millions were accounted for by the injereased pay of the army, the railway fetrike, deferred payments, rupee exchange and small unanticipated delays in demobilisation. At present there were 80,QOO troops on the Rhine; by November 15 there would be 45,000, which Immediately thereafter would be reduced by twelve thousand. We were guarding 168,000 Germans in France, and Were dispersing as fast as possible. 100.000 Chinese native laborers. He optimistically reviewed the situation in Russia. Denikin had now gained an eflOilhous territory including the tidiest part of Russia with a population «f 40 Bifllkms. Denikin had taken winner 970.000 men since May. In March, when serious fighting began there wore 490.000 Bolshevik troops and fi2o/)00 anti-Bolsheviks. By September there were 460,000 Bolsheviks and 640,- . 000 anti-Bolsheviks. , ' Denikin had been advised that we expected hi 4 forces to become self-support-ing by the end of the present financial y«ar, meanwhile the Gibinet had approved a final contribution to Denikin bf surplus stores valued at 15 million Sterling; which would be dispatched gradually during the winter. Hence we Were approaching the end of our own •ntanglem«nt in Snssla in a way which was securing the same objects as those fit. the anti-Bolsheviks. He hoped not to be accused of militarism- Britain alone, among the nation* of the world, had taken steps Which would shortly abolish conscripfcoitt U 'WS* the only country in Europe ' Which practiced what it preached and ttarigiateA the sentiments of the Info a' great and swift policy ° f

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19191106.2.33

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 6 November 1919, Page 5

Word count
Tapeke kupu
971

BRITISH FINANCE. Taranaki Daily News, 6 November 1919, Page 5

BRITISH FINANCE. Taranaki Daily News, 6 November 1919, Page 5

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