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The Daily News. FRIDAY, JULY 9, 1920. PASSING IT ON.

The full significance of the recent, cable message from London referring to the British revenue and ex • penditure for the past quarter may not have been generally realised, but those who pay attention to the various factors in the economic problem cannot fail to be impressed by the hopelessness of an early reduction in the cost of living. The figures referred to are in themselves remarkable, showing, an increase in the revenue, as compared; with the previous corresponding quarter, of over 129 million sterling, while the expenditure exhibits a reduction of over 116 million. The surplus of revenue is ,£30,258,214, as compared with a deficit of £215,403,318, so that Britain's financial position improved to the extent of £245,661,532, and the floating debt has been reduced since March 31 by £26,354,000. Although this result must be gratifying to the Chancellor of the Exchequer, there is nothing remarkable in the way it has been achieved. Ths money has been raised by heavy taxation and duties, the result of I which is the inevitable raising of the cost of living. The public are being made to pay the Empire war debt—not only the people of the Motherland, but of all parts of the Empire. Inevitably th u , taxpayers of the United Kingdom are doubly burdened; they have to pay taxes as well as the increased price of commodities caused by taxation, and enhanced by increased cost of production and profiteering. All governments of countries affected by the war appear to be unable to avoid increasing the cost of living. The Chanc llor of the Exchequer has refused to alter the Budget proposal increasing the excess profits duty from forty to sixty per cent. That extra twenty per cent, will not diminish the capitalists' profits, though it may restrict trade, but the public will have to bear the burden by the increased cost of *oods. followed by, all the in-

creases in a vicious circle, and probably leading to a recrudescence of strikes. Some remarkable figures were recently published by the Manchester Guardian in order to show the unprecedented gains made by large companies since 1913. The comparison made between the profits of that year and for 1919 exhibits some astounding increases- In the cotton industry, the output of which affects every household, in the Empire, Coats' profits rose from £2,634,388 to £3,995,149, while Court auld's increased from £267,669 to £2,280,861, and the other firms in a corresponding proportion, varying only in degree. Drapery and warehouse companies also secured largely increased profits. Faudel's rise was from £7,875 to £120,122; Foster Porter's £14,304 to £74, 679; Pawsons and Leafe's £7,639 'to £42,699; and Jeremiah Botherham 's £59,692 to £307,638. Some striking increases in profits are also to be found in the case of companies dealing with metals. For instance, the Brush Electrical rose from £20,061 to £223,966, Crossley Bros. £42,752 to £135,085. and Palmer's (shipbuilding) £65,096 to £325,752. The miscellaneous group affords similar examples, the most notable being the Anglo-Persian Oil, which in 1913 was in its early stage and showed a loss of £26,711, but in 1919 the profit was £2,010,805. Among other large rises were Bri-tish-American Tobacco, over a million and a half, Dunlop Bubber, nearly a million, Lever's (soap) one and a half millions, Maypole half a million, Jurgen's (margarine) over a million. To the cost of manufactured goods the Dominions have to pay freight, and nearly all the shipping companies show largely increased profits, all of which come out of the poeket3 of the public. The P. and O. alone increased their gains from £354,469 to £1,614,585, the Manchester Ship Canal having nearly doubled its profits. The brewers have also had a good time, Guiness' profits having risen from £1,238,248 in 1913 to £2,050,680 in 1919, while Bass' had to be content with the modest rise of about £l3o,ooo—and this out of liquor heavily watered before it reaches the public. In the light of thesefigures the .height to which the cost 'Of living has soared is easily understandable, and the influence of taxation as a lifting factor becomes quite plain. There is no escaping from the conclusion that until taxation becomes normal, the price of general commodities—to say nothing of luxuries—must remain at a high figure. The only palliative is abstention from buying except the veriest necessities, and economising in every possible direction. The outlook is by no means free from ominous symptoms in the direction of industrial unrest- It must never be forgotten that all increases in the cost of production, and in the profits of the producers must be paid by the consumers—it is all passed on.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19200709.2.26

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 9 July 1920, Page 4

Word count
Tapeke kupu
778

The Daily News. FRIDAY, JULY 9, 1920. PASSING IT ON. Taranaki Daily News, 9 July 1920, Page 4

The Daily News. FRIDAY, JULY 9, 1920. PASSING IT ON. Taranaki Daily News, 9 July 1920, Page 4

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