CANADIAN WAR BUDGET

Press, Volume LXXVI, Issue 23194, 4 December 1940, Page 9

CANADIAN WAR BUDGET

DRASTIC TAXES ON LUXURIES TARIFF ON IMPORTS FROM U.K. REMOVED (UNITED PRESS ASSOCIATION'—COrTRIGHT.) (Received December 3, 7.30 p.m.) OTTAWA, December 2. An emergency War Budget, imposing drastic taxes on luxuries and removing the tariff from a wide range of imports from the United Kingdom, was introduced in Parliament* by the Minister for National Revenue (Mr J. L. Ilsley). The Budget prohibits imports of automobiles and other luxuries, including manufactured tobacco and spirits, except from sterling areas, and imposes excise taxes ranging from 20 per cent, to 80 per cent, on private automobiles and 25 per cent, on radios, vacuum cleaners, and virtually every type of electrical appliance. It completely suspends the present tariff on United Kingdom exports of cotton, artificial sllhs, bituminous coal and furniture.

Tlie Budget imposes a diminishing scale of imports of hardwoods, raw silk, and all petroleum products. Mr Ilsley said the regulations were designed to save 5.000,000 to 6,000,000 dollars a month on the basis of current trade. He said that the restrictions would not lessen trade with the United Slates, but merety change its character by confining imports to essential materials for the war. He said imports from the United States before the war averaged 40.000. dollars a month, whild in the last six months they had averaged 65.000. dollars, reaching 74,000,000 dollars in October. Mr Ilsley said he was not prepared to disclose the urgency of the country's position in respect of United Stated exchange, but he laid a patriotic obligation on the gold-mining industry to increase production in 1941, He said the Government had decided that it was justified in mobilising and liquidating foreign securities owned by the people, at least until a serious effort was made to restrict the consumption of imports that were not essential. CANADA’S WAR POLICY “BALANCED PROGRAMME WORKED OUT” (Received December 3, 7.30 p.m.) OTTAWA, December 2. The Prime Minister (Mr W. L. Mackenzie King) warned the House of Commons that Germany, with her forces, machines, and materials largely intact, presented “an appalling menace,” ‘ •“It is going to take all we can do and give to beat her,” Mr King said. He dissociated himself completely from the statement of Mr R. B. Hanson, Leader of the Opposition, that the situation at present was graver than it was previously. He said if the Government had yielded to the public demand earlier in the year and sent thousands of men overseas it would only have saddled Britain with an additional burden. Instead, a balanced programme of war production, coincident with, the raising of army, naval, and air forces, was worked out.