SPEECH BY THE PREMIER.

Taranaki Daily News, 6 November 1919, Page 5

SPEECH BY THE PREMIER.

THE COST OF ARMY AND NAVY. WHY A FORCE WAS NECESSARY. Received Nov. 5, 8.30 p.m. London, Nov. 3. The Premier, replying, expressed the opinion that the Chancellor had knocked the bottom out of the case of his critics. He emphasised their disagreements in regard to where to retrench. The greatest expenditure was for the Army and Navy, and he pointed out that the Navy would presently be only a prewar Navy, and it would be less at the end of the financial year. Dealing with details in regard to the reduction of the personnel of the Army and Navy and air forces, he said that the February forecast for March 31 was for 825,000 men. Actually, there would be only 300,000.

Next year there would be a substantial surplus for a reduction of the debt. The provision for the liquidation of the debt in fifty years was one of the most magnificent propositions concerning international liability ever advanced, and was a testimony to British courage and foresight. ABNORMAL DIFFICULTIES. Mr. Lloyd George said the Government had established pensions amounting to £120,000,000 annually. There had been exceptional charges in the current year owing to abnormal difficulties. The British Army had been more scattered over the world than any other army. In reply to a query, Mr. Lloyd George gaid that they had evacuated Armenia to economise. They were unable to police the world, and he honestly thought other powers ought to share the responsibility. Then the Government was criticised for not demobilising more quickly, on, the grounds that they knew Germany would sign the Treaty. "On the contrary," he said, "the Conference did not know till the last minute that Germany would sign, and then she only signed because she knew that Britain maintained a number of reserve divisions in France ready for this eventuality, and with which force Foch was prepared to march to Berlin. Without this undemobilised force, we should have substituted defeat for deficit and thrown away all the terrible sacrifices. Any Government doing this would have deserved impeachment and undoubtedly would have had it." Owing to the way in which we wero dealing With the financial difficulties, Britain need not fear a comparison with any country in the world. Conscription in Germany had gone, and her Navy was at the bottom of the Bea. This significant fact gave grounds tor confidence in the financial stability of the future. Britain could weather this storm as she had weathered every other storm Nevertheless, he hoped that the economises would not deny the expenditure of moneys on objects essential to tha national life, like education. INCREASED PRODUCTION. Mr. Lloyd George urged that the truest economy was increased production. The depreciation of the sovereign was at present the heaviest tax. The only remedy was production, which could be got only by the co-operation of contented people. It was the .greatest folly to verge cessation of expenditure in health, comfqrts, and training for people who had been prepared to sacrifice their lives on the battlefields of the country flhey loved. Mr. J. R. Clynes moved an amendment declaring the present national war expenditure was unjustifiable, and urging drastic economy, and advocating a levy on capital and the reversion to the State of war fortunes for the purpose of reducing the national debt. He said that the Labor Party contended that the financial situation was' so extraordinary as to call for extraordinary measures. He urged that inquiry be made into the question of a capital levy. MONEY FROM GERMANY. Mr. Bonar Law, winding up the debate, referred to the amount due from Germany for tlje upkeep of the Army of Occupation. Thi3 first instalment of Germany's debt would undoubtedly be obtained. As regards our eight thousand million debt, certain items should be offset against it. The Allies owed us over seventeen hundred millions, and we owed America eight hundred and forty-two millions. The latter debt was offset by the debts of the Allies t.i us. 1 Then the Dominions owed us two hundred millions and India two hundred and twenty-one millions, bringing down the debt to seven thousand millions. ■Furthermore, he said he did not think Russia would always be a bad debt. As regards the German indemnity, he was confident we would get a considerable sum to reduce our debt. Sir Donald McLean asked permission to move an amendment. 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 Laborites unless an inquiry was held before a capital levy was decided on. The House rejected the Labor amendment by 405 votes to 50, the minority being almost exclusively LaWiteß. The Government resolution was then adopted unanimously. A CAPITAL LEVY. Received Nov. 5, 0.40 p.m. Loiidon, Nov. 4In the House of Commons, Mr. Bonar ■ Law declined to so frame the reference Of the War Fortune Inquiry Committeethat it would permit an investigate oi the question of a capital levy.—Aus.N.Z. Cable Assn.