BRITISH FINANCE.

Taranaki Daily News, 18 March 1920, Page 5

BRITISH FINANCE.

REDUCTION OF DEBT URGED. UNPRODUCTIVE EXPENDITURE. By Telegraph.—Press Assn.—Copyright. • Received March 17, 3 p.m.

London, March 16. In the House of Commons, the debate on high prices was resumed. Sir Donald Mac Lean (Deputy Leader of the Liberuls) moved a reduction of the Civil Service Estimates by £100,000,000, and urged that the proceeds of a sale of surplus war stores should go towards a reduction of the floating debt.. Mr. Austen Chamberlain (Chancellor of the Exchequer) agreed on the importance of a reduction in the floating debt, and pointed out the Government hud begun to reduce the National Debt, and had ceased to borrow in order to balance current expenditure. He expressed concern in regard to the extraordinary extension of business in proportion to the companies, whicli tended to result in increased competition for the limited,,supplies, materials and labor, and he was of opinion that those capitalising or recapitalising businesses on a basis of the present inflated profits were taking a dangerous course. Mr. Chamberlain emphasised that the Government alone could not carry out a deflation of credit. He pointed out that the £557,000,000 of the Civil Service Estimates were made up as follows: — £43.000,000 for purely accounting, and the charge was not expenditure at all; £45,000,000 for the bread subsidy, which he agreed should be ended as quickly as possible; £2:5,000.000 owed to the railways for maintenance and renewal during war-time; £15,000,000 for coal, of which £12,000,000 was repayable with interest: thirty-six loans to Allies, including ten maximum relief loans to Central Europe. a;id eight for the relief and reconstruction of Belgium. Despite his warning that new expenditure must involve provision for new revenue, the House of Commons sanctioned £10,000.000 additional for old ago pensions; £11.500.000 for a housing subsidy: £3,000,000 as war bonus for the Civil Service; £15,000,000 additional to education; £22.000,000 in unemployment donations and the re-settlcment of exservice men; £12,",000,000 in war pensions. This made a total of £348,000,000 out of the £557,000,000, of which he believed not one penny was challenged at present. Mr. Chamberlain asked how could he save in these circumstances 1 — Imperial Service. , THE POSITION IMPROVING. OUTLOOK FOR THE EXPORT TRADEReceived March IS, 12.15 a.m. London, March 10. Sir Robert Home (Minister for Labor), winding up the debate on high priees in the House of Commons, said that during the first quarter of 1920 we paid oif an appreciable portion of our debt, and reduced the number of notes in circulation- He believed the financial position was improving daily. There was no cause for apprehension or despair. Sir Robert Hcrne concluded with an optimistic reference to the outlook for the export trade. Sir Donald, McLean's motion was rejected by 25R ,-otes to eighty. A White Paper has been issued indicating legislation authorising the Board of Trade to grant credit, up to £20,000,000 in connection, with the export trade, where found advisable owing to circumstances arising out of the war. The proposed powers date from September 9, lfllfl. and the credits are exercisable within three years, and are repayable within six years.—lmperial Service.