BRITISH FINANCE

Ashburton Guardian, Volume 52, Issue 205, 11 June 1932, Page 5

BRITISH FINANCE

A HOPEFUL OUTLOOK. COMPARISON WITH WORLD TRADE. THE INTERNATIONAL FACTORS. '(United Press Association— Copyright) (Received This Day, 11.5 a.m.) ; LONDON, June 10. ' The Chancellor of the Exchequer (Mr Neville Chamberlain) made an import ant speech on the third reading of the Finance Bill, which was passed by the House of Commons by 408 votes to 34. The difficulties at present being encountered, said the Chancellor, were common to every country and were not going to be solved in any Finance Bill introduced in this country alone. Cooperation between the nations was necessary and, indeed, was the only way in which a solution of the prevailing problems could be ultimately found. Referring to debt charges and the prospects of undertaking a conversion operation, Mr Chamberlain said that when the Government considered tha circumstances favourable it would act promptly. Dealing with the general outlook, the Chancellor said that some feeling of uneasiness, which did not seem to be well founded, had arisen. He deprecated both breezy optimism and undue pessimism, and said he " hoped ,the House: would keep a balanced judgment;/ It ; was'futile to base any estimate "of the revenue from income-tax and surtax on the figures for April and May, or to base any calculation for the whole year upon what had happened in the first two months, but he saw no reason to expect that there would toe any appreciable fall in the yield of inland revenue, including stamp and death duties as well as income-tax and surtax. They had no experience to make any reliable calculation of the yield of import duties. Any estimate must to a largo extent be conjectural. The latest figures, of unemployment were to some extent disappointing, but I they were affected by the Whitunstide holiday. The next figures might show a very different aspect of the situation comparing the existing situation with that prevailing before the first National Government took office. He said they had got to the position at which confidence had been restored in the eyes of the British people and in those of the world. It had come about to an almost embarrassing extent. The figures of unemployment, which had risen in 1929 and 1930, had been . checked. i The Stock Exchange price ,of 3£ per cent, conversion loan last August.stood at 77 5-B,'and to-day was at 88. If * Britain's position was compared with that of other countries there was a good deal of ground for encouragement. The trend of trade during the January-April period, compared with those of the corresponding' period 'of 1931, showed that the fall of imports in the United Kingdom was 12 per cent, but the" United States buffered a fall of 30 per cent., France 35, and Germany. 36;- French exports-had fallen by 38 per cent, and those of the United States and Germany by 36 per cent, each. -While exports from the United Kingdom had fallen by only about 7 per cent, in volume, the percentage oi the fall is. imports to the United Kingdom in the last three months of the current - year was nil, whereas in the United" States it was 4 per cent., and in Germany 12 per cent. In regard to the fall in volume of exports, Germany had suffered 21 per cent., the United States 16 per cent., and Britain less than 1 per cent. Had it not been for coal they would have shown an increase. The export of manufactured goods in the first quarter was higher than in the first quarter of last year. It was true that while Britain was getting the largest share of it, world trade as a whole Was continually diminishing, illustrating the fact that no single country could prosper when the rest of the world was depressed. But the fact that the world depression had been widening and deepening had brought home to every people an added sense of the reality of the situation. "In my view," said Mr Chamberlain, is to-day in Europe , a greater approach to unanimity as to the cause of the troubles and to the steps necessary to solve the problems than, at any time since the war. Next week we enter upon a conference at which an earnest endeavour will be made to reach an agreement with the countries directly concerned withthe solution of these difficulties, and ifeel ■hopeful about the results. The Conference at Lausanne may prove to be the turning-point in the history of Europe in these difficult days." Mr Chamberlain said he did not accept the view that if these hopes were disappointed, further taxation was inevitable, or that the end of the possibilities of a reduction of national expenditure had been reached. The main items of expenditure of a size that would warrant the belief that substantial reductions could be made, however involved matters of vital importance eitheAx> the safety of the country or to We standards of living, but if the Government felt that changes re--1 carding them were necessary it would not flinch from telling the House and * the country. On the whole they had no cause for pessimism. On the contrary he believed it necessary carefully'to watch the situation and # to lose no opportunity of reducing national expenditure where that could properly be done. The Government had already taken measures which had prepared the way for rapid advices as soon as the general conditions became ' favourable. They had taken measures, through the monetary policy, to set the stage for that rise in wholesale prices which all desired. They had held the pound reasonably steady at a level not inconvenient to industry, and had enacted in this Finance Bill measures designed to avoid speculative fluctuations in the future value of the sterling. They had instituted a system of tariffs on a scientific basis. They had entered upon an era of cheap and plentiful money. They had seen ideas on the monetary policy in the United States running parallel with their own

and might, therefore, especially in view of the conferences at Lausanne and Ottawa, and possibly later in London, think that a series of opportunities would enable them to contemplate the future with cool heads and with cautious but reasoned optimism. —British Official Wireless. LABOUR MOVES REJECTION. BURDEN OF NATIONAL DEBT. (Received This Day, 1 p.m.) LONDON, June 11. Mr Morgan Jones (Labour, Glamorganshire), in moving the rejection of the Finance Bill, declared that it was irrevelant to the international situation. The nation could not continue another generation with such an exhausting burden of interest on the National Debt. It was time the Government courageously faced the situation and called holders of war bonds, like other members of the community, to face a reduction of interest.