THE OUTLOOK FOR BRITAIN.

Auckland Star, Volume LXIII, Issue 138, 13 June 1932, Page 6

THE OUTLOOK FOR BRITAIN.

Peeling in Britain about the financial future lias undergone curious fluctuations in the last nine month's. The apprehensions of last year were followed by the' confidence to which the formation of the Coalition Government gave rise. In the early part of this year there was positive jubilation over the balancing of the Budget.- Then, during the last few weeks, there has been a swing back. It has been reported that the Government intended to economise stillf urther and impose still more taxation. Now Comes, as a' check' to this depressing movement, the long statement in the House of Commons by the Chancellor of i the Exchequer. It may-be,poor comfort to be told that Britain, is weathering the economic storm better than other countries, but the assurance is certainly important. However, Britain's prosperity depends mainly upon the general state of the .world, and.it is a gleam of light in a dark-landscape to read that Mr.' Chamberlain thinks there is to-day a greater approach to unanimity as to the cause of the troubles in Europe and the steps necessary to overcome them than at any time since the war. The Chancellor, however, deprecated both breezy optimism and undue pessimism, and appealed to the House of Commons to keep, a balanced judgment. As to the internal situation in Britain, the Chancellor was unable to hold out any immediate hope of debt conversion, which would go far to relieve tire burden on the nation. The promise that.the Government would act promptly when it considered the circumstances favourable reminds one that the late , Chancellor of the;. Exchequer made a similar promise fourteen, months ago. A considerable debt conversion is essential, for the real weight of Britain's interest burden, even allowing'for the fact that the Floating Debt i has been. brought down'steadily in the'past eight or nine year*, has been increased by the general depression. The policy of the Government, has been to. create, by reforms and economies, a position' favourable for an approach to the investor, and" thus obtain substantial relief, in interest payments without adding to the total burdtn of debt.